Merchandise
Financial Planning
The fight for the customer has recently been greatly intensified within retail industry. In order to respond to the growing customer expectations, the companies are being forced to constantly change the collections and to follow the hottest fashion trends. To maintain the increasing pace it is necessary to shorten the production cycle and plan appropriate order quantities with accurate introduction.
These requirements, in conjunction with long production development cycle and lead-time from Far East, mean that many companies have serious troubles with appropriate product planning. Ineffective management in this area causes the significant margin loss due to extensive clearance actions or frozen capital in remaining heavy positions of end-of-season inventory.
Challenges
- No standardized process
- No total view of plans
- Inefficient workflow
- Difficulty working on the right level of detail
- Management goals poorly implemented in the organization
- Lack of visibility and accountability
- Poor in-season management
- Distinction between planning and execution is blurred
- No homogenous technical architecture and fragmented solutions
Gains:
1 - 2%
20 - 30%
1 - 3%
Benefits:
- Improved logistics:
- Shorten storage time.
- Shorten storage time.
- Improved company outcomes:
- Increased margin thanks to minimizing price reductions.
- Reduced end-of-season inventory.
- Effective management:
- Better and faster response to changing market trends.
- Accurate Open-to-Buy budgets.
