Optimize planning, raise profitability
The goal of retail merchandise planning is to improve the profitability of a retail business by means of an optimized planning process. Effective planning raises margins by optimizing sales potential and minimizing stock issues. Whilst sales potential has always been the focus of the company, inventory optimization in particular can release significant untapped potential. Avoiding lost sales due to sold-out goods (stock out) or of excess inventory (over-stocking) that can only be sold through price reductions, provide a direct and lasting contribution to improved margins.
A systematic procedure for the realization of these potentials takes into account the processes, systems and changes that need to place in the organization. A basic scenario for the retail planning could look as follows:
The implementation of these processes in IT systems makes significant demands for:
- Data timeliness and quantity
- User platforms
- Systems integration