| Oracle® Retail Assortment Planning User Guide for the RPAS Fusion Client Release 14.1 E55312-01 |
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| Oracle® Retail Assortment Planning User Guide for the RPAS Fusion Client Release 14.1 E55312-01 |
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The fourth step in the AP business process is to create the shopping list.
Table 5-1 Business Role in Create Shopping List
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The Senior Buyer determines the assortment strategy, goes to market, and fills the shopping list in the Create Shopping List task. |
In the Create the Shopping List task while preparing to go to market and while going to market, the Senior Buyer makes two sets of decisions:
Assortment Strategy - Key decisions are the number of styles to carry, number of variants per style (colors, fragrances or flavors) and the product attribute and/or Customer Segment level goals for the Assortment (the number or percentage of total for a brand, a silhouette, a color family, and so on).
Style Level Assortment - As the Senior Buyer collaborates with Designers, Vendors, and so on, they will build out the Styles to be carried (selecting the brand, targeted price point, proposed buy quantity, the description, the silhouette, and so on, for each Style). The attributes can be set up as the various decisions are made, rather than as one data entry step. Throughout the process, the Senior Buyer can roll-up the assortment decisions to date by product attribute to evaluate the assortments completeness, and so on.
In the next step, Build the Wedge, the Buyer selects styles from the Shopping List to assort into each cluster of Points of Commerce (stores, sites, applications, networks, and so on).
This process enables merchants to collect their assortment ideas and thoughts and record their decisions as they go to market, work with designers, view look books and collections, and so on. In this task, merchants can perform the following:
Determine/calculate the number of styles for which the Senior Buyer wishes to eventually carry (either in total or by cluster parent, where each cluster would be eligible to carry the assortment created for its cluster Parent). This can be calculated through the use of sales plans (sales per item goals), historical sales and/or fixture/page capacity.
Merchants can set assortment targets by product attribute (brand, silhouette, color family, sleeve length, heel height, width, and so on) and/or by Customer Segment. Dozens of product attributes are packaged with the generally available version and many more can be added through configuration to suit each category's needs.
These targets may be seeded from a Sister Look, from Last Year, loaded from an external source, or set administratively or by each Senior Buyer.
As the Shopping List assortment is built out by the Senior Buyer, the assortment mix, percentage of new and carryover styles, and so on, can be compared to the targeted assortment size using the Assortment Tote-board.
Senior Buyers can use the Shopping List to piece together their style level assortments by answering the following types of questions:
What key trends must be reflected in the assortment and how have I assorted to those trends to date?
How many styles should be carried from Brand X versus Last Year or from the last major floor-set?
Should I shift the number of styles by price point tiers? Should a tier be added or subtracted?
Which silhouettes, embellishments, colors families, and so on, should be featured versus supported?
How should the assortment be adjusted from look to look (floor-set to floor-set)? Should a specific assortment trend or theme be pre-launched and built for two floor-sets before contracting it?
How many colors and color runs (basic, seasonal basic, trend, and so on) should be carried by this style?
Should this style be carried in a basic or an extended size run?
Hundreds of decisions are made in this phase and all of them can be recorded here, rather than in a spreadsheet, e-mail, and so on.
For new styles, the merchant/trader creates placeholder styles using Dynamic Position Maintenance (DPM). For more information on DPM, see the Oracle Retail Predictive Application Server User Guide for the Fusion Client.
Throughout the process, styles can be aggregated by attribute to compare the depth by attribute to your goals, last year, recent floor sets, customer panels/analysts, and even to social network or Endeca search results.
In addition to attributing the items, merchants can record their thoughts regarding cost, price, color runs, sales volume, and buy quantities for each style. This data can be used to seed the Buy Plan.
Then, as the Senior Buyer is fleshing out the assortment, their decisions can be shared with a merchandising system application so that styles created/updated in Assortment Planning can be shared automatically with a merchandising system application. AP refers to this functionality as Slow Item Build. For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Installation Guide.
If this capability is utilized, merchants no longer have to set up the style/style-color twice (in both AP and a merchandising system application). Styles and style-colors can be set up in AP only and allow it flow to a merchandising system application. This covers both creating the style number, style description, and its assignment to a subclass, as well as creating/updating the attributes, color diffs and size diffs for the style number (color and size diffs are merchandising system application terms for color and size runs or groups).
This same process also is available when creating the style-colors (as part of the Build the Wedge process).
This task has the following steps:
To build the Create Shopping List workbook:
Select the New Workbook icon in the Create Shopping List task.
The workbook wizard opens.
In the Select Look(s) page, select the looks to be loaded into the workbook. Click Finish.
The workbook is created.
In this step, the Senior Buyer has access to a variety of historical and plan information as shown in the following list. This information is intended to provide a complete picture of what needs to be accomplished by this assortment and what has been accomplished by prior assortments, both in terms of sales/profitability and in terms of key trends and attributes that define each assortment.
This step has the following tabs and views:
In this tab, the Senior Buyer is able to review historical sales and profitability by product attribute or by customer segment. A number of product attributes (silhouette, heel height, sleeve length, and so on) grouped by type (general, footwear, handbags, tops, and so on) are included in this generally available release, but many more can be added. This information can be useful in thinking about which trends should be carried forward by product attribute or by customer segment into the Shopping List that is about to be created.
This view focuses on the sales and profitability history of prior assortments for the same time periods last year by product attribute, Subclass (or higher), and Cluster (or higher).
In this tab, the Senior Buyer is able to view the planned sales (from the Merchandise Financial and/or Location Plan) and profitability for the time periods covered by each Look in the workbook at the intersection of Subclass (or higher) and Cluster (or higher) level. In the Administrative section, the Merchandise Financial Plan and Location Plans (or LY) are spread down to the Subclass, Week, and Cluster levels (if they were not created originally at this level).
This tab shows the same measure set as on the History tab, but for the Sister Look of each Look in this workbook. This enables the Senior Buyer to evaluate the key product and customer segment trends from the Sister Look that may be relevant in building these new Looks.
A Sister Look can be used to:
Maintain a consistent set of assortment themes or trends across several looks even if you plan to add/drop style-colors in each look.
Pattern the mix of key product attributes from the Sister Look to this look. For example, you may want to maintain a similar ratio of basic to classic to trend styles from one look to another (you can also do this with silhouette, fabric, price point, and/or other product attributes).
Align two different groups of subclasses (such as, tops and bottoms) in different Looks for a similar time period.
This view focuses on the sales and profitability history of prior assortments for the Sister Looks by product attribute, Subclass (or higher), and Cluster (or higher).
This tab shows the Senior Buyer the start and end dates, their duration in days, the prior look and the Sister Look for each look in this workbook. The start and end date for a style launching in a given look is defaulted to the look's start and end dates. The dates can be adjusted. This view matches the Define Look(s) view in the Look Management task.
In this step, the Senior Buyer uses planned or historical sales and/or capacity (fixtures, pages, boards, and so on) to determine (using a calculation with multiple options and an override) the targeted size of the each look's assortment.
There are two supported methods for setting the assortment size: Run of Sales and Fixture Capacity.
Run of Sales
There are four components to the Run of Sales approach:
Determine an average run of sales per style-color in the assortment.
Select a total sales plan for this Look.
Divide the total sales plan by the average run of sales per style-color.
Review or revise the resulting recommended assortment size.
There are a variety of ways to calculate the inputs (the first two bullets) such as using last year, a Sister Look, a prior Look, or a Location Plan and so on. The Senior Merchant is able to adjust the inputs manually as well as override the resulting style-color count.
The sales capability enables the Senior Buyer to use gross or net sales in calculating the assortment size. Net sales equals gross sales minus customer returns (additional layers can be added to this calculation). There are two sales tabs, one for Brick & Mortar and one for Direct. Brick & Mortar uses net sales. Direct starts with gross sales to calculate net sales. All clusters can be planned on either tab, with the Net Sales measure being the same measure on both tabs, so updating Net Sales on one tab will show the same result in the Net Sales measure on the other tab. Consider the two tabs to be a difference of approaches.
Fixture Capacity
There are four steps to the Run of Sales approach with Net Sales versus Gross Sales leading to Net Sales:
Review/assign fixtures for each Look or Look Group (this likely was defaulted from an external source or by an Administrator).
Review/revise the capacity, in units, of each fixture in units (this likely was defaulted from an external source or by an Administrator).
Much like the Run of Sales approach, you can select whether to use history, a Sister Look, or a Prior Look to determine the ratio of capacity in units to the number of style-colors.
Review/adjust the result of dividing the fixture capacity by the ratio of capacity per assorted style-color.
Set Assortment Size
Throughout the Set Assortment Size step, you are able to compare both the Run of Sales methods (Net or Gross) and Fixture Capacity approach to identify an appropriate assortment size. You also can choose to ignore those methods and just set an assortment size that you have determined externally. Either way, AP will use net out the carried over items from the assortment size so you can track how many new styles and style-colors must be found to fill out your ideal assortment size.
This step has the following tabs and views:
This step has one custom menu option.
Seed Plan
This menu option, available on all three tabs, enables the Senior Buyer to use Last Year's sales for the same time period of each look, a Sister Look of each look, or the Location Plan (loaded from the Location Planning solution for the same time period as the Look or created in the administrative section by spreading the Merchandise Financial Plan to store level using historical sales and sister stores) to calculate the logical number of style-colors that should be carried in the assortment. The Senior Buyer can evaluate all three options and use any of them or override the result with another number.
This tab defaults to a Brick & Mortar Sales approach (Net Sales) for calculating a run of sales used to estimate the assortment size for each Look, with of the option of using:
Last Year's sales for the same time period of each look.
Sales from the Sister Look of each look.
Location Plan Sales (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.
If you wish to use a Gross Sales less Customer Returns process to calculate Net Sales, use the Direct Sales Tab.
A Sister Look is used if you want to copy a prior look that meets your needs or if you want to maintain a consistent assortment size across several looks even though you plan to add/drop style-colors in each look.
In this tab, the Senior Buyer uses a capacity-based approach to determine an optimal number of style-colors for each Look's assortment. It is a three step process:
Review the capacity and constraints for each potential fixture (or page and so on) that could be used in each Look. The capacities and constraints are set administratively or loaded from an external source.
Select (if not done administratively or loaded from a space planning solution) the fixtures used in this Look.
Review the calculated (based on the fixtures assigned to this Look or to a Sister Look) assortment size and/or override the calculated assortment size.
A Sister Look is used if you want to copy a prior Look that meets your needs or if you want to maintain a consistent assortment size across several Looks even though you plan to add/drop style-colors in each Look.
In this view, the Senior Buyer can review the capacity and constraints for each potential fixture that could be used in each Look. The capacities and constraints are set administratively or loaded from an external space planning solution.
In this view, the Senior Buyer assigns the fixtures used in this Look (if not done administratively or loaded from an external space planning solution).
In this view, the Senior Buyer reviews the calculated (based on the fixtures assigned to this Look or to a Sister Look) assortment size and/or overrides the calculated assortment size.
A Sister Look is used if you want to copy a prior Look that meets your needs or if you want to maintain a consistent assortment size across several Looks even though you plan to add/drop style-colors in each Look.
This tab defaults to a Net Sales approach (Gross Sales minus Returns equals Net Sales; further measures can be subtracted from Gross Sales through configuration) for calculating a run of sales used to estimate the assortment size for each Look, with of the option of using:
Last Year's gross sales and customer returns for the same time period of each look.
Gross Sales and customer returns from the Sister Look of each look.
Location Plan Gross Sales and customer returns (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.
A Sister Look is used if you want to copy a prior look that meets your needs or if you want to maintain a consistent assortment size across several looks even though you plan to add/drop style-colors in each look.
In this step, the Senior Buyer can set goals for any or all product attributes relevant to each Look. They also can vary by cluster parent, if desired. They may be entered by the Senior Buyer or seeded (and then edited) from the Look running the same time last year or administrative goals that were set in the Look Maintenance workbook.
Goals can be set in terms of the number of style-colors for a specific attribute or a percentage of the total number of style-colors carried in the Look or Look Group and spread to each Look.
The Senior Buyer can use these product attribute based goals as their shopping list when going to market, meeting with designers, reviewing collections/look books, and so on.
This step has the following views:
This step has one menu option.
This custom menu seeds the product attribute based goals from the Look running at the same time last year or from attribute based targets that were loaded externally or set in the Look Maintenance workbook. The Senior Buyer can choose to edit directly the results of the seeding process.
In this view, if seeding the Product Attribute Goals for each Look, the Senior Buyer can choose whether to seed the goals from the Look running the same time last year or from administratively defined or from externally loaded attribute targets.
In this view, the Senior Buyer can review three sets of Product Attribute goals: 1) the Look that ran during the same time Last Year, 2) the Look Targets set or loaded administratively, and 3) the Working Plan version (that was seeded and/or edited by the Senior Buyer).
Once the Shopping List is approved in Step 5, the Working Plan is copied into the Current Plan version of the goals.
As the Senior Buyer goes to market (collaborating with designers and viewing assortment options), they can use this step to document their decisions as they build out their style list and roll it up to compare to the attribute level goals for the assortment (from Step 3 - Set Shopping List Goals).
The key to this approach is to build out the assortment in a natural fashion. You can start with reserving 10 style-colors for brand x or creating three A-line silhouette styles and flesh them out as you go (and recording your thoughts on commitment quantities, prices and sales levels, and so on). The go to market process is far from linear, lasting for a few days to weeks, and this step supports that approach. You use the views in this step as your scratchpad to record your ideas and plans.
Some retailers may use a Product Lifecycle Management (or PLM) solution to manage the go to market process, where the PLM solution stores all of the potential assortment options. In this scenario, the Senior Buyer uses AP to store the choices they select from the full spectrum of options offered by the PLM solution. There are many appropriate models for interaction between PLM and AP (one model is shown in the following figure). This version of AP can be configured to support many of the PLM and AP process models that you are likely to utilize.
The following figure shows one example of a PLM and AP process model. Others are also supported.
This step has the following tab and views:
The heart of the Shopping List process is found on this tab. Here the Senior Buyer can record ideas/decisions regarding the core components of the Style level Assortment in terms of the following:
How many colors to carry for each style
Whether the style should be carried in basic, seasonal, or trend color runs
Sales potential for the style
Buy quantities committed to or proposed
Sell-thru goals
Potential depth of the size range to be carried
Estimated return rates may be recorded here too, if necessary
These decisions can be made by Cluster, Cluster Parent, or in total. The decisions are spread down from Total or Cluster Parent down to the Cluster level automatically, enabling the Senior Buyer then to tailor only those details that matter.
In this view, the Senior Buyer records their decisions regarding the style level shopping list. Those decisions are mentioned in the introduction to the Fill the Shopping List tab.
The sales, returns, margin, and sell-thru numbers entered here can be used to seed the buy plan which could save time for the Buy planner (Buyer or Senior Buyer). A style ranking and price tier is calculated for each style.
Consider this view to be an Assortment Tote-board. This view enables the Senior Buyer to track how many style-colors are being carried over into this Look, how many new styles and their proposed color counts have been created for this Look, and how many style/colors remain to be created/planned for this Look.
This view also can show those same slices of the assortment (carry-over, new, and yet to be created) in terms of style-colors counts, planned sales units, and planned sales in retail value. The sales numbers represent the sales potential referred to in the tab introduction.
In the two views on this tab, you are able to create placeholder styles, define their product attributes, their estimated cost/price/markup and whether you plan to bring them in for a time-frame that is different from the look's start and end dates.
You do not need to know any of these attributes from the start. The idea is these views enable the Senior Buyer to slowly build out the assortment throughout the go-to market process (by adding an attribute or style here and there as one move through the process).
In either view, the Senior Buyer can create placeholder styles using the right click menu. Then overnight, the Slow Item Build process renames those placeholder style numbers with merchandising system style numbers. For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Installation Guide.
In this view, the style placeholder can be created along with its description and proposed cost/price/markup. You can record an intro/exit date if it is to vary from the start/end date of the Look. The Price Tier of the attribute is calculated automatically once you set a proposed price point (this can be changed at any time).
In this tab, the Senior Buyer can view various roll ups of the styles (and their attributes) added to the Shopping List to date. The plan can be rolled up by product attribute and compared to the attribute goals, to last year and to recent trend, and so on) or rolled up by customer segment where selected product attributes are used to determine whether each style is attractive to each customer segment.
These same two views also are shown for the Sister Look to provide a comparison point of history or recent trend.
In this view, the Shopping List (styles and their attributes) is rolled up to the attribute level, compared to the attribute goals as well as to last year and to Endeca search results (where applicable).
In this view, the Shopping List (styles and their product attributes) is rolled up to the customer segment level. Each style's attributes are compared to the product attribute (price, silhouette, and so on) definitions of each customer segment. If selected product attributes are desirable for that Customer Segment, then the style is counted for that segment along with its sales, margin, and so on.
A common way to use this view is:
Typically Customer Segment A generates 20% of the Class 10's sales, but currently only 15% of my assortment's sales represent styles appropriate for Customer Segment A.
This same analysis can be based on the number of styles and margin too.
This is the same view the Shopping List by Attribute but this view shows the Sister Look to the Look being assorted.
In this final step of the Shopping List process, the Senior Buyer decides they have completed the shopping list and wants to make it available to other designated users, in particular to the Buyer who will pull styles from the Shopping List to fill out each Cluster's Wedge.
This step will convert the Working Plan decisions regarding start/end dates, prices, descriptions and attributes into Current Plan versions of the Working Plan measures. The Current Plan versions should be used for external reporting and so on.
This step can be completed more than once, if the Shopping List requires additional changes after it has been approved. The Working Plan version will overlay the Current Plan version if approved again.
