Open-to-Buy Software

Open-to-buy planning software is essential to ensuring you have the right amount of stock available to satisfy demand while ensuring you meet your financial objectives. Having too much inventory (or the wrong products) can impact your cash flow and the markdowns needed to reduce the inventory will lower your margins. On the flip side, not having enough inventory can result in out-of-stocks and lost sales. An open-to-buy planning process supported by open-to-buy software can ensure a retailer stocks the right amount of the right products at the right time resulting in increased revenues and margins.

Open-to-Buy Budgets

open to buy budgets

Open-to-buy budgets define the dollars that buyers have available to purchase products in order to meet customer demand while staying within the overall financial plan. The open-to-buy budget is set during the merchandise financial planning process and then updated monthly based on current inventory position which includes inventory on hand, in transit and any outstanding orders. Open-to-buy is essentially the difference between how much inventory is needed and how much is actually available. It can be set for the business as a whole and/or at the category level.

By tracking the current purchasing spend to budget, open-to-buy planning helps buyers to make intelligent and informed purchasing decisions that mitigate risk. No business should operate without monitoring its inventory spend within the overall financial plan. Having visibility into the allocated budget allows buyers to track the amount available to invest in further inventory. In order to take advantage of special buys or to add new products, some of the open-to-buy dollars should be held back. This also allows the retailer to react to fast-selling items and quickly restock shelves.

JustEnough Open-to-Buy Planning

Having the appropriate mix of inventory and knowing how much to buy pre-season and in-season is imperative to better financial control and customer satisfaction. JustEnough open-to-buy planning allows you to more effectively plan your assortments and purchase inventory with visibility to the financial plan and current inventory position. Aligning your financial goals and assortment plans results in better visibility throughout the planning process to ensure sufficient stock levels are available and that over-buying, stock outs and missed sales are minimized.

JustEnough allows you to set critical benchmarks to determine performance by measuring inventory turns and gross margin returns, enabling you to analyze the current effectiveness of the plan and intelligently make adjustments needed for improvement. JustEnough open-to-buy software features Excel-like grids and graphical displays to drive quick user adoption and is available both Onsite and OnCloud.

Benefits of JustEnough Open-to-Buy Software

  • Increased probability of attaining financial objectives by planning assortments and purchasing products within the open-to-buy budget
  • Greater productivity through a strong, integrated workflow and end-to-end planning and budgeting process
  • Improved inventory turns and decreased markdowns and stock-outs as a result of accurate purchasing pre-season and in-season
  • Increased cash flow by understanding which categories are performing the best and minimizing over-buying of products or categories that are less profitable
  • Increased customer satisfaction by providing the products they want to purchase at the right place and time