Create WSSI and open-to-buy reports
Retail Optimizer integrates WSSI (weekly sales, stock and intake) and open-to-buy reporting.
The main challenge in retail is how to earn more gross profit with similar or reduced inventory level. “Open to buy” is the methodology to achieve this.
Following “Open to buy” method in purchasing allows to control the purchasing budget, preventing over- and underbuying. This allows to increase GMROI, reduce inventory and improve profitability.
Benefits are simple:
- Less out of stocks brings more revenue.
Less markdowns brings more margin.
How open-to-buy works?
“Open to-buy” indicates how much money is left in the category’s merchandising budget.
Merchandisers plan the sales demand, markups, markdowns and inventory intakes for any given week or month. Also defining forward cover for the product category identifies how many periods of sales should the inventory cover. The system calculates “open to buy” based on such inputs.
Positive open-to-buy will show to the merchandiser that there is still room to order more goods, otherwise there can be risk of out-of-stocks and resulting lost revenue.
Negative open-to-buy indicates overbuying. Merchandiser should reduce inventory, apply markdowns or initiate other measures how to balance inventory and sales.
Benefits of RetailOptimizer open-to-buy module
Actionable visualizations of overbought and underbought categories help to set right activities, every week.
Compare plans and actuals easily, model hundreds of categories and stores in minutes.
Data integration to source systems (ERP, POS software) reduces manual work and improves data quality.