Merchandise Planning, Forecasting and Open-to-Buy

There are several key components that make up the RMSA merchandise planning, forecasting and open-to-buy process:

Class Level - The level of detail at which our inventory forecasts are generated and subsequently, automatically revised is defined as the classification/store level. This means that a separate forecast is automatically generated by the system for each individual classification in each store.

Fully Automated - The sales, inventory, markdown, receipt forecasts and resulting open-to-buy are automatically generated by the Retail Intelligence™ system as new data is submitted. Once this data is submitted, the forecast engine automatically generates a new ten-month forecast for each classification/store and builds the appropriate summaries for reporting purposes. It is truly "bottom up" planning. We plan at a class level not a store level and it is at the class level that we recognize the bullet points listed below:

• Sales patterns
• Seasonality
• Turnover potential
• Optimum flow of receipts
• Correct timing of deliveries
• Classifications forecasted to achieve optimum turnover
• Each classification is viewed as an individual profit center

The RMSA Retail Intelligence™ forecast also thinks like a retailer and asks questions, at the store classification level, such as:

• Were sales above or below last year and plan
• Were sales profitable
• Was there enough inventory
• Is inventory fresh
• Are markdowns needed
• Is turnover appropriate
• Were sales trending up or down during the last 90 days
• Are transfers necessary
• Should forecast be adjusted because inventory is too high or too low
• Does the on-order match the open-to-receive
• Are there upcoming promotions

Cash Flow Analysis - RMSA's easy to use cash flow analysis feature enables you to see how your cash position is affected by future forecasted sales, operating expenses, other income, debt service and the cost of inventory currently on order and not yet ordered (positive open-to-buy). You have the option of overriding all items populated by your RMSA merchandise plan. Through our plan you can see how cash flow affects all levels of your operation.

"Imagine If" Function - There is an "Imagine If" function of our software that allows the user to test different scenarios of the plan. Imagined plans may be used to see the impact of special circumstances such as off price goods available to you, or what your plans would look like if your turnover rate was adjusted, if your annual volume for particular classifications was increased/decreased, if your inventory level was adjusted to see impact of additional sales available to you or if you wanted to plan a special sale.

Mid-Month Updates - You can quickly see how your classifications are performing as you proceed through the month. This information makes it possible for you and your merchandising analyst to revise your open-to-buy and distribution decisions.    Special circumstances during the current month may influence today's merchandising decisions. You may have:

• Taken more markdowns than planned
• Sold much more than expected at any given point in the month
• Hit upon an item or items that are suddenly driving sales in a single class or subclass

Charts & Reports - You can generate charts to illustrate your merchandising position and performance any time you wish.

Available reports are:

Report Features - You can see new report details; including:     

• Positive open-to-buy          
• Cumulative open-to-buy     
• Cost of goods sold
• Fiscal year-to-date maintained margins

And, as with all RMSA products and services, our planning and support staff is just a phone call away at 800.727.7672. We offer technical support and help with any questions you may have.