Assortment planning means to take a decision for the selection of the product according to the market demand. The decision is pretty much important for both the buyer and manufacturer. In the clothing and design area, these difficulties are additionally increasingly entangled, in light of restricted time windows. When a design season has gone, the market changes the productivity plan accordingly. Now, the staying stock just sells at intensely low costs. The area of assortment planning, merchandise assortment is important in which multiple decisions are made which are usually interlinked with each other for keeping stocks and selling the goods after sometime.
Stock size and arrangements
The stock must be organized according to the categories. Otherwise this will lead to the confusing situation before customers. If the seller has stock in an excessive amount of assortment, they may need arrangements and separations. Without it, they face difficulty to provide proper guidance to their clients. Not being sure about the store’s character can distance clients. In the event that the item blend is restricted or slender, there is dependably an approaching danger of being ruled by a contender who has a superior stock blend or size.
Range of the product
The initial step in assortment planning is the understanding of the basics related to selling. It is further divided into the two categories one is width in which in which number of varieties of the selling product is considered while in depth, we consider the number of products and its variations within a single brand.
Factors of doing assortment planning
To start with, sellers should adjust their classification and item decisions to the potential, yet in addition the constraints of their outlets. Occupied stores in downtown areas may improve one kind of grouping of the products, which can further be adjusted to suit littler floor and rack space. Bigger outlets in rural shopping centers may require an alternate combination of products which have multiple categories.
Classification of Stores
The retailer must categorize their stores to simplify their business. For example, they should make groups of those stores which have similar products. This can be done by
- Retailer financial range
- Space available for groups
- Shopkeeper’s personal interest
- The availability of the workers
System involved in assortment planning
Following are the IT systems which are very important in assortment planning
PLM stands for product lifestyle management system. An appropriate PLM framework for style and attire brands underpins plan, item improvement, buying, test endorsement, deals, administration, and work process following. Generally, the PLM framework is utilized to help brand promoting, plan, advancement, sourcing, and creation.
ERP means Enterprise Resource Planning system in which information travels between different departments and system where it is processed and decisions are made for the betterment of business.
Demand and Supply system helps the companies to let them know that there products are increase in demand so they have to product more similar products. Their will help to make financial status better.
Retailer strategies include the stores grouping, brands management in shops and increasing the amount of products which are more demanding by the customers.
Frequently asked questions
Q1: How do I make an Assortment plan?
Ans: You need to keep six factors in your mind for an assortment plan. Here are the factors.
- Your brand strategy.
- Your business model.
- Current market trends.
- Sales and margin history.
- Channels of a distribution requirement.
- The organization’s financial plans.
Q2: Why is Assortment planning important?
Ans: Assortment planning is critical for demand generation and shoppers’ satisfaction. The Assortment planning process includes Assortment variety, which increases the inventory cost. That’s why Assortment is important to be optimized.
Q3: Does Assortment be important in retail?
Ans: Yes, Assortment is important in retail.