Assortment Planning Software

Retailers today need to ensure that they are delivering assortments that are both appealing and profitable and leading retailers have found the key to achieving this is using an assortment planning software solution. With increasing customer sophistication, omni-channel commerce and the need to increase revenues while maximizing margins, precision assortment planning is critical for bridging the gap between your financial goals and your customers’ expectations.

The number one rule in retail is to ensure that shoppers can find what they want, where they want it and when they want it. This has never been more important as consumers are increasingly less brand loyal and will use online, mobile and social channels to quickly find alternatives if you cannot deliver what they want, when they want it. One lost sale can result in the loss of a customer forever.

localized assortment planning

To meet customer expectations, retailers need to plan assortments that are wide enough and deep enough. To achieve this goal, retailers should rely on assortment planning software that can not only control how much inventory buyers can purchase, but also ensure that everyone within the organization is working from one master plan that meets the company’s financial targets.

Prior to the 2008-2010 recession, buyers typically had full control over the assortment planning process due to the fact that consumer spending was strong and excess inventory and large margin-impacting markdowns were not a significant concern. However, in today’s “new normal” economy, retailers cannot afford to let buyers purchase independently without considering the impact to the bottom line. Therefore, the assortment planning and financial planning processes need to be tightly integrated with no one losing sight of the financial plan as they work to satisfy today’s unpredictable and demanding consumers.

Localized Assortment Planning

Retailers have learned over the years that not all consumers or store locations are the same. Sending the same mix of products down to size and color to each location can result in success in some locations and losses in others. That is why leading retailers are taking a localized assortment approach to their planning.

Let’s consider an example. An apparel retailer is going into the fall season. Sending the same mix of products to Phoenix as it sends to Boston could be a costly error. Heavy coats and boots are not going to sell well in Phoenix. So the options are huge markdowns or costly product transfers to other locations. Both impact the bottom-line. Another example is that the same mix of products may not sell as well in an urban area as it does in a rural area. The needs and desires of the two consumer bases vary.

Localized Assortments Increase Sales

In order to meet local customer preferences, retailers must know who their shoppers are by store or store clusters. Although many retailers have a solid understanding of their customer base, they have trouble reflecting that in their plans despite access to point-of-sale and loyalty data. By using a localized assortment planning solution, retailers can build solid localized assortments. Many retailers will cluster stores that have similar attributes such as seasonality, location and customer profiles and preferences. Having this lower-level visibility into its customers’ buying behaviors can help a retailer implement strategies that ensure their customers find the right product at the right time at the right location, all while maximizing sales and margins.

JustEnough Assortment Planning

localized assortment planning

JustEnough guides you through the assortment planning process from analysis to execution helping to ensure the best assortments are in the right stores. This scalable, end-to-end solution with plug-n-play functionality, store profiling, localization and more, allows you to match assortments with customer demand every time. User Interface Excel-like grids and graphical displays drive quick user adoption and increase visibility. Its management-by-exception functionality results in improved decision-making and increased productivity, allowing users time to apply their unique knowledge of their business and customers to the assortment plan. JustEnough Assortment Planning is available both OnSite and OnCloud.

Benefits of advanced JustEnough Assortment Planning Software

  • Improved financial results through better assortment planning and open-to-buy budgeting
  • Increased customer satisfaction through targeted localized assortments
  • Reduced stock-outs driving higher service levels
  • Higher margins driven by less excess inventory and fewer markdowns

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