This document provides an overview of strategic merchandise planning. It begins by stating the purpose is to demystify planning, identify challenges, offer solutions, and present services. It then discusses who performs planning, the different forms it can take, and challenges organizations face in planning and implementing planning software. Challenges include discussing planning with the wrong audiences, not understanding the complexity, and high planner turnover. Solutions proposed include educating all stakeholders, customizing calculations, outsourcing functions, and providing documentation and training. The document concludes by listing planning and retail consulting services provided.

1. STRATEGIC MERCHANDISE
PLANNING

2. Purpose of the Overview
The overview is designed to:
 De-mystify Planning
 Identify challenges
 Offer solutions
 Present services

3. Connections
Planning
Assortment
Planning
Store /
Point-Of-Sale
Allocation
and Replenish
Plans Suggested orders &
Distributions
Actual Distributions
History

4. Everybody Plans
All companies perform some type of planning function:
Financial plans,
Merchandise plans
Store plans
Assortment plans
Planning is not limited to sales, but can include other
measures such as inventory, receipts, markdowns, shrink,
margin, etc
The goal of any plan is to measure performance and
determine the ROI .

5. Vehicles of Plans
Planning comes in different forms
Excel spreadsheet
Paper, pencil and calculator
Dedicated Planning software

6. Vehicles of Plans
Planning may be performed in various ways:
Top level planning (Company plans)
Style planning
Hierarchy level planning (Department planning)
Store planning
Seasonal planning (Holiday)

7. Who Plans?
Depending on the size of the organization, the planning
function is done by:
 Dedicated planners
 Buyers
 Merchandise managers
 Finance
 Allocators
 Presidents / CEO’s
 Store Operations
 Store managers

8. Challenges

9. Challenges
The Challenges faced when purchasing planning software:
 The Planning software is usually discussed with the wrong
audience, i.e., IT personnel or project sponsors instead of the
business unit.
 Finding the right person to speak with within an organization is
tricky.
 The planning function is quite complex and based on
mathematics and retail theory, therefore difficult to discuss.
 Don’t know enough about the product; fear of the unknown, on
both sides.
 Planning is not really about the software, but rather about
process and how you want to run your retail business; the
software acts as a vehicle.

10. Challenges
The Challenges faced when implementing planning
software:
 In many cases, training is usually centered around the
software and it’s functionality, and not on Retail Theory.
 A mathematics based application is difficult for many to
people to grasp.
 In many organizations, the planning function is
undervalued and often ignored when business is good; it
is therefore not given the importance and attention that it
deserves.

11. Challenges
 There is a lack of qualified planners in the market, resulting
in high turnover.
 Initially, staff is trained by the software provider.
 Once they leave, the original software provider is not called
back to train new personnel;
 This lack of training usually encourages the turnover…it’s a
downward spiral.
 The assumption is that dedicated Planning applications are
too complicated, but in reality, it is the planning function
that is complicated, not the software.

12. Solutions

13. Challenges vs. Solutions
Challenge:
 The Planning software is usually discussed with the wrong
audience, i.e., IT personnel, or project sponsors instead of
the business unit.
Solution:
 Planning discussions need to be between the software
provider and a healthy cross-section of the business (buyers,
planners, merchandisers, CEO’s, CFO’s)
 On the business side you need to involve people who
understand the way you do business, how you plan, how you
buy, how you receive, how you ship, how you assort and how
you clear merchandise.

14. Challenges vs. Solutions
Challenge:
 Finding the right person to speak with within an
organization is challenging.
Solution:
 Assess the level of retail and planning knowledge of the
software provider.
 Insist on dealing with someone who understands retail as
well as planning.

15. Challenges vs. Solutions
Challenge:
 The planning function is quite complex and based on
mathematics and retail theory, therefore difficult to discuss.
Solution:
 Understand the mathematics
 Ensure that any calculation can be customized at any time
based on your business requirements.
 Ensure that any customization does not require for the
software to be re-implemented.

16. Challenges vs. Solutions
Challenge:
 Don’t know enough about the product; fear of the unknown,
on both sides.
Solution:
 Education
 Don’t be shy about communicating what you need to know to
make you comfortable with the topic.
 Ensure that you have access to knowledgeable consulting
resources to:
 Help you understand the product.
 Be available to answer any questions anyone may have.
 Help build your planning and retail processes.

17. Challenges vs. Solutions
Challenge:
 Planning is not really about the software, but rather about
process and how you want to run your retail business; the
software acts as a vehicle.
Solution:
 You need to move away from how things were done in the
past, including handed-down processes and move towards
how things should be done.
 These types of process definitions will help you measure
your performance and realize the ROI.
 Ensure that you have access to the latest information on
industry best practices.

18. Challenges vs. Solutions
Challenge:
 In many cases, training is usually centered around the
software and it’s functionality, and not on Retail Theory.
Solution:
 Learning to press buttons is easy, understanding the
reasoning behind the buttons is quite another story.
 Make sure you have access to specialized retail and planning
consulting services, which can be used to:
 Mentor inexperienced staff
 Bring in a fresh perspective
 Improve efficiencies

19. Challenges vs. Solutions
Challenge:
 A mathematics based application is difficult for many to
people to grasp.
Solution:
 In this case, insist on having simple, clear and accessible
documentation that defines and explains all the calculations
that exist in your system.
 Conduct workshops on the mathematics behind the
calculations to ensure that your staff is evolving at an
optimum rate.

20. Challenges vs. Solutions
Challenge:
 In many organizations, the planning function is undervalued
and often ignored when business is good; it is therefore not
given the importance and attention that it deserves.
Solution:
 The reality is that planning is equally important in good
times as in bad.
 When times are good, planning can help you seize
opportunities.
 When times are bad, planning will help you keep inventories
under control.
 Plans are the only way that you can measure your progress.

21. Challenges vs. Solutions
Challenge:
 There is a lack of qualified planners in the market, resulting in
high turnover.
 Initially, staff is trained by the software provider.
 Once they leave, the original software provider is not called back
to train new personnel;
 This lack of training usually encourages the turnover…it’s a
downward spiral
Solution:
 One option is to outsource some of the planning functions all the
while maintaining approval authority.
 Second option is to augment your current planning activities to the
next level.
 Accurate and up-to-date documentation is the key to ensuring that
the knowledge remains in the company and does not leave with the
employee.

22. Challenges vs. Solutions
Challenge:
 The assumption is that dedicated Planning applications are too
complicated, but in reality, it is the planning function that is
complicated, not the software..
Solution:
 Regardless of what bells and whistles may exist within a piece of
software, the user needs to understand the logic behind the
buttons they are pressing.
 Buying a dedicated planning application goes beyond the software.
It is your opportunity to reach your potential based on a process
that best suits your business environment.
 In a retail environment, processes are continuously evolving and
as a result, a planning implementation is not a task, it is a
relationship.

23. Services

24. Our Services
 Planning implementation consulting.
 Assortment Planning implementation consulting.
 Allocation Evaluation
 Consultation on custom calculations
 Planning Outsourcing
 Planning/Retail Consulting
 Business process definition/consultation
 Augmenting planning functions
 Merchandising/Planning Hierarchy definition
 System audits
 Business audits
 Report assessment and consolidation

25. How to get in touch
► Appelez-moi : 514 898-0685
► Écrivez-moi : Hoda.ghatas@hotmail.com