Why Do Retailers Need OTB Planning?
OTB — Open To Buy — should be part of every retailer’s planning no matter what size their operation is. Small retailers don’t have a lot of margin for error when it comes to sales volume and cash flow. Larger retailers have more room for mistakes, but those mistakes come at a higher cost because of volume. Retail Planning (OTB) Software provides the tools that help retailers make profitable buying decisions and keep stock levels where they should be.
Failure To Plan = Planning To Fail
OTB planning is basically a financial budget for retailers that translates all the information about past sales cycles and inventory movement into a realistic prediction of potential patterns. The goal is having the right amount of the right product on the shelf at the right time.
In order to reach this goal, ChainDrive has designed software to perform specific functions:
- Leverage historical contribution patterns so that precise dollar distribution is determined
- Meaningful comparative analysis of sales and inventory data using charts and drill-downs is accomplished
- Point of sale software component is integrated for immediate updates
- Stock level forecasting via accurate stock to sales ratios generates relevant receipt patterns
- Allocations from top down and bottom up, including the ability to lock and unlock desired results at any level
- Flexible planning and forecasting of units, retail and cost
- Ability to simultaneously plan for, monitor and maintain multiple seasons
- An extensive options list including dynamic controls, segment views, and critical indicators
All these features are designed to enable a specific retailer evaluate their unique business and plan for the future based on accurate analysis of their own particular dynamics. Too much of one product means loss when the price has to be reduced to move it off the shelf. Too little of a product without OTB flexibility means your customers go to a competitor. Retailers need Open To Buy Planning Software because stock levels are too important to leave to guesswork or chance.