Merchandising and Assortment Planning
Planning for Retail is a used to forecast sales, and manage inventory by identifying the customer needs. With the help of Merchandise and Store planning, Management can improve Return on Investment (ROI), minimize stock-out scenarios, and evaluate sales, margins, markdowns, shrinkage, inventory levels, and other key performance indicators.
SAP P4R helps Planning and reporting for business activities involving assortment and merchandise, as a smoothly integrated process, to plan on a value-basis and on a quantity-basis. Planning to be done at N levels hierarchy, for example, purchasing organization, store group, or merchandise category levels.
Merchandise planning is used to define important key figures, for example, sales, gross revenue, stock, assortment width, and assortment depth for a time period in the future: for example, a season. By comparing planning data, actual data and historical data, we can define and optimize future developments.
Based on the historic sales figures, forecasting are done in planning at different levels of hierarchy. Retail planning has two planning approaches are followed for forecasting. Differentiation between these two types of approaches is found in the degree to which they are specifically adapted to the planning process.