Slide 1 Influences Merchandising Process People Systems SUPPLY CHAIN P O S MERCHANDISING MANAGEMENT REPORTING FINANCE DISTRIBUTION LOCATIONS SUPPLIERS MARKETING STOCK ALLOCATION INVENTORY MANAGEMENT.
MARGIN SALES & FORECASTING OPEN TO BUY Merchandising INVENTORY Process MANAGEMENT PERFORMANCE ANALYSIS STOCK ALLOCATION DISTRIBUTION LOCATIONS People FINANCE SUPPLY CHAIN Influences MANAGEMENT REPORTING POS Systems SUPPLIERS MARKETING MERCHANDISING Key Drivers Right Product Right Location Merchandise Planning Right Quantity Right People Right Time Right Processes Right Location Physical Location Size Occupancy Costs Demographics Classification Grade Sales per m² Right Time Speed to Market Seasonality Seasonal Trends Right Processes Sales and Forecasting Inventory Management Stock Allocation Supply Chain Margin Management Performance Analysis Open to Buy Industry Benchmarks KPI’s Right People Level of Experience Level of Expertise Succession Planning Incentive Programs Training and Development Programs Right Quantity Size Matrix Colour Assortment Fabric Assortment No of Styles Quantity per Style Sleeve Lengths Pant Lengths Category Mix Right Product Target Market Suppliers International Trends Value Equation Price Fashion Quality Common Problems Experienced Late to Market High Stock Holdings Wrong Product on Racks Timing of Markdowns Inadequate Stock Allocation Methodology Range Planning not identifying Key Trends Inadequate Margin Management Lack of detailed Management Reporting No Lifecycle Management Strategy No Pre-Season Strategic Plan Step Review Past Season Company Performance vs Plan Category/Dept/Store Sell Thru by Product Type Missed Opportunities Step Initial Budget Proposal for New Season by Store at Company level taking into account Current Trends New Stores Refurbishments Relocations and Closures Indicative Market Financial Trends (CPI, Industry Growth) Gross Margin Target Step Commence Merchandising Planning Process at Department Level for Sales Stock (WOS and S/T ) Markdowns Spend (Open to Buy) Gross Margin Average Retail Pricing Step Grade Stores by Turn Over Take Department Product (Sales/Stock) Plans down to Category level by month by week by Graded Store by Climate Grid by Store Demographic Step Review Planned Sales % Contribution by department, or by category, or by Store vs Previous Like Season Step Quantify Product Mix Number of Styles Quantity per Style Sleeve Lengths Pant Lengths Top to Bottom Ratio’s Colour Plan Fabric Plan GP Plan Price Point Plan Size Matrix Step Sign-Off Product and Financial Plans Step Supply Chain Optimisation Supplier Selection (Fashion/ Quality/Price) Logistics Planning (Speed to Market) Step Stock Allocation Process by Style by Store (incl new/Refurb) by performance vs plan Delivery to Store