The question is not whether to innovate, but HOW. Your business’s inventory management is one of the most important areas to focus on. One forecast isn’t enough. You need to use assortment planning to get the right buy quantities for each item based on what your customers want. Assortment planning is the process of choosing which items to buy and in what quantities to ensure you have the best practices of retailing them profitably. For assortment optimization insights in … How to improve your assortment planning strategy. .fs-subtitle{font-weight:normal;font-size:13px;color:#666;margin-bottom:20px;} It’s hard enough to anticipate what products shoppers want to buy; determining the right amount of inventory for each item is even harder. Inventory and sales are too vast to allow you to strategize by hand. By following a “keep it simple” process, the retailer was able to implement a new fashion planning process in nine months. KORONA comes with an unlimited free trial so every business owner can see how it works before making a purchase. Below are several examples of how great assortment planning can have a positive impact on a store: Even more, there are so many factors to consider when determining your assortment strategy. ERP Evolution19 Enterprise Resource Planning (ERP)-1990’s Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. #progressbar li:after{content:'';width:100%;height:2px;background:white;position:absolute;left:-50%;top:9px;z-index:-1; Specifically, DemandTec Assortment Optimization, used in conjunction with DemandTec’s … Effective assortment planning ensures that the right mix and range of retail goods are in stock for customers in every channel and category. A modern planning solution delivers these capabilities, In depth look at retail merchandise buying and planning processes providing thought leadership and knowledge-based information. Join our team of retail and technology experts. The assortment to POG mapping process runs every time an assortment is loaded into ASO and every time the direct assortment data is updated. JustEnough makes it simple to forecast demand, plan assortments and inventory, allocate and replenish products and place orders. If we can improve product availability by just 1% then we will have a great many more satisfied customers” – Marcel Borlin, programme manager for range, space and merchandising, Tesco. You can get buy quantities right before purchase orders are written, saving inventory dollars and allocation headaches. Using assortment planning to tailor your buys improves customer experience as well, because customers will be more likely to find what they want in-store. Copyright © 2020 daVinci. Instead, you need a tool that’s built to help buyers do their jobs. The data you collect transforms your assortment planning from art into science. That being said, below are a few ways to go about correcting your assortment planning strategy. 2. Simply put, the strategies for inventory assortment are meant to help business owners understand the what, where, when, who, and how much of sales. This article explores just one key process – Merchandise and Assortment Planning. JustEnough Assortment Planning and Retail Merchandise Planning and Optimization COMPARE. Getting it right is critical to your survival. Your inventory management software and sales reporting are the best things to consult. Download additional information on our products and services. Let’s get more in-depth with several common retail assortment strategies. If you’re basing your buys on top stores vs. all stores, you’re only addressing one small factor of customer demand. But this measures the return on just one constrained resource, cash. Flexible, scalable technology, for today and tomorrow. True assortment planning is about gathering data, and using it to guide the creative process and make smart decisions. You have customers around the world. Meet strategic objectives based on the relationships between customers, products and locations. Some companies are beginning to experiment with new technologies such as electronic product codes and RFID tags in an effort to better manage … Many shoppers will be happy to settle for substituting a similar product if the exact one they were looking for isn’t in the store. 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