Some Information about assortment planning software

 

Assortment planning Software is the process of setting up key product lineups and their optimization for winning sales with customers. As retailers become more advanced in their sales strategies, assortment planning has also evolved using automated planning tools with AI and machine learning.

Today, assortment planning goes beyond mere inventory control and stocking products and is influenced by various factors such as price point, product categories, visual merchandising, store format, promotion strategy, revenue targets, lead time etc.One way of ensuring assortment planning goes deeper into your sales strategy, is by identifying what kinds of products get the best sales traction compared to competitors.

It seeks answers to questions like what are the ideal price ranges to ensure a sale, what categories of products would be marketed the best in a particular segment, how should the assortment be structured based on the various products in stock, how best can the assortment be optimized to cash in on areas that competition is weak on, etc.

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Cross merchandising is another great way of using complementary displays to cross-promote similar product categories and is a good technique to ensure targeted in-store promotion.

Few tips which can help retailers get started with assortment planning include setting goals which can be used to evaluate performance overtime, examining historical data to understand which goals are reasonable and which products can be included in the matrix, understanding the product hierarchy and how customers arrive at a specific purchase point,capitalizing on smaller products that include impulse buying and finding the perfect balance in product categories, sizes, SKUs etc.

It's clear that inventory control can be more efficient when a strong assortment planning strategy is in place. Successful merchandise plans can then boost profits ensuring the business have a clear view of their inventory counts and their turnover rates.

Previous Blog - Choosing the Right Assortment Planning Strategy for your Retail Merchandise.