11 Create Location Plan Task
The Location Planner role is usually the same person that generates merch plans in the merchandise planning organization. During the pre-season, the Location Planner generates merch plans and location plan targets. The Location Planner references those targets when creating the department level location plans.
The Planner will start the Create Location Plan task after location targets are published. Location Planning is the process in which planners create the location plans at the store level. These plans are then ultimately compared to and reconciled against the Merch Plan. The Location dimension allows for planning by Comp and Non Comp status. Locations have been assigned membership to Comp or Non Comp in the alternate dimension level of Store Comp Status. When the Location dimension level is set to the Store Comp Status, the planner may analyze and plan Sales by Comp and Non Comp in both the Create Location Targets Task and the Create Location Plan Task.
This task includes the following steps:
Create Plan Step
Location Plan creation is important for ensuring that each location's receipts are in-line so that the organization can achieve the plans and targets set forth. Location planning requires a balance and understanding of the store's promotional-nature, seasonality/climate, size, and so on. On top of that, consideration of the events of last year that impact that particular location's sales history become crucial. Examples of significant events that impact the Ly sales history:
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Hurricane or other natural disasters that close the store
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Competition: competitor opened or closed a store
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A remodel or reformat
Seed Plan Sub-Step
The first action to take when creating a new plan is to seed the plan.
Initialize View
With this view, you can choose to seed your plan Last Year (Ly), Forecast (Fcst), or Targets (Tgt) data to create a demand curve on which to initially spread the new plan. Or, you can instead choose to not seed the plan, which allows you to create a plan that is not influenced by last year's performance or forecast (plus last year's performance).
Figure 11-1 Create Plan - Seed Plan Initialize
Table 11-1 Create Plan - Seed Plan Initialize Measures
Measure | Description |
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Wp Seed Source |
The seed source used to seed the working plan. Use this option to seed or not seed the working plan. You can seed with Forecast (Fcst) or Target data. Alternatively, choose the Blank option if you do not want to seed the working plan. |
Wp Seed Info |
Includes a few pertinent facts about the last time that the Seed custom menu was executed: last seed source concatenated with last seeded date and the last user to seed. If blank, then the given intersection has never been seeded. |
The following table shows a list of measures that are seeded for different seeding options. If the selected seed source is Forecast or Target, the metrics detailed in the table below without a forecast or target source will be seeded with last year.
Table 11-2 Seeding Options
Seeded Measure | Seed with Version |
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Wp Sales R |
Ly/Fcst/Tgt Note: When the Wp Seed Source is Tgt, this metric is seeded with the target variance to Ly since Tgts were created at the Company level. |
Wp Sales U |
Ly/Fcst/Tgt Note: When the Wp Seed Source is Tgt, this metric is seeded with the target variance to Ly since Tgts were created at the Company level. |
Wp GM R% |
Ly/Tgt |
Wp Returns R % |
Ly/Tgt Note: When the Wp Seed Source is Tgt, this metric is seeded with the target variance to Ly since Tgts were created at the Company level. |
Wp Returns AUR |
Ly/Tgt Note: When the Wp Seed Source is Tgt, this metric is seeded with the target variance to Ly since Tgts were created at the Company level. |
Wp Receipts C |
Ly |
Wp Receipts U |
Ly |
Wp Shrink C % |
Ly |
Wp Shrink AUC |
Ly |
Wp Transfers In/Out C |
Ly |
Wp Transfers In/Out U |
Ly |
Wp W/F Owned by Retailer R % |
Ly |
Wp W/F Markup R % |
Ly |
Wp W/F Markdown R % |
Ly |
Initialize View
With this view, you can choose to seed your plan with Last Year (Ly) or Forecast (Fcst) data to create a demand curve on which to spread the new plan's initial targets. Or, you can instead choose to not seed the plan, which allows you to create a plan that is not influenced by last year's performance or forecast (plus last year's performance).
When seeding the plan, you can choose which information is seeded. For instance, you can seed just one half or all halves in the task. You can also choose what locations and products to seed.
Table 11-3 Merch Plan Measures
Measure | Description |
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Seed Source |
The seed source used to seed the working plan. Use this option to seed or not seed the working plan. You can seed with Last Year's (Ly) or Forecast (Fcst) data. Alternatively, choose the Blank option if you do not want to seed the working plan. |
Seed Info |
Includes a few pertinent facts about the last time that the Seed custom menu was executed: last seed source concatenated with last seeded date and the last user to seed. If blank, then the given intersection has never been seeded. |
There are two ways you can seed. You can seed each level individually, or you can seed several levels at once by changing the dimension level shown in the view.
Seeding One Level at a Time
To seed one target at a time, you set the seed source information. Then, to seed the next department in the Product hierarchy within the current channel, complete the following steps:
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Click the dimension whose value (position) you want to change.
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Click the Next or Previous arrow, as shown in Figure 11-2.
Figure 11-2 Changing a Dimension Level with Page Arrows
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The page refreshes and the next department is displayed in the page edge. Note that the Seed Source measure is not populated for this department.
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Select the half that you want to seed with Ly or Forecast data.
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Click the Next arrow to view and seed the next department.
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When you have selected all the data you want to seed, click Seed in the bottom right corner.
Figure 11-3 Seed Button
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A confirmation message is displayed, stating that the data has been successfully seeded. Click OK.
After you have seeded, the view refreshes and the Last Seed Source and Last Seed Date measures contain the source and date of the last seed.
Seeding Several Levels at Once
The default setting of the Initialize Plan view is set to show the Half dimension of the Calendar, the Channel dimension of the Location hierarchy, and the Subclass dimension of the Product hierarchy.
To change the dimension level shown in the page edge or grid, complete the following steps:
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Click the Edit View button of the dimension tile you want to change.
Figure 11-4 Location Tile — Edit View Button
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The dimension window is displayed. Select the level of the dimension that you want to appear in the page edge. If you want to view more than one level at a time in the page edge or grid, select multiple levels. In the following image the, Channel was deselected and all [Location] was selected instead.
Figure 11-5 Location Dimension Selection Window
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Click OK when finished.
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Repeat Steps 1 through 3 for other dimensions if necessary.
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After the dimensions are at the level you want, select the halves that you want to seed.
In the following image, both the Location and Product dimensions are at the highest level, Company, and the half Half1 FY2023 are set to seed from last year.
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When you have selected all the data you want to seed, click Seed in the bottom right corner.
Remember that regardless of the dimension selected for viewing and seeding, the actions in a workspace are ultimately limited by the positions you have selected for the workspace, that is, the Subclasses, Channels, and Halves.
Figure 11-6 Seeding Several Levels at Once
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The view refreshes. The Seed Info measure contains the last seed source concatenated with last seeded date and the last user to seed. A confirmation message is displayed, stating that the data has been successfully seeded. Click OK.
After you have seeded the divisions, continue to the next sub-step: "Sales and Markdowns Sub-Step".
Select Local Currency View
The local currency chosen will be applied to the views of local currency found throughout the Create Location Plan task.
After selecting a currency, you can click Calculate to apply the rate. If you have not yet performed a seeding action, the rate will be applied at the time of seeding.
Select VAT Rate View
The VAT Rate chosen will be applied as the VAT rate throughout the Create Location Plan task. Ly actuals include VAT therefore the VAT rate is used to calculate values excluding VAT.
After selecting a VAT rate, you can click Calculate to apply the rate. If you have not yet performed a seeding action, the rate will be applied at the time of seeding.
Set Alert Thresholds View
In this view, you set the threshold minimums (mins) and maximums (maxs) that will trigger alert formatting and alerts in the LP: Exceptions dashboard. The following table lists the conditions under which an alert is triggered. Thresholds must be non-zero to trigger alerts.
Threshold | Condition |
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Wp GM R % Max Threshold |
Alert is green when Wp GM R % is greater than the threshold |
Wp GM R % Min Threshold |
Alert is red when Wp GM R % is less than the threshold |
Wp Markdown R % Max Threshold |
Alert is red when Markdown R % is greater than the threshold |
Wp Markdown R % Min Threshold |
Alert is green when Markdown R % is less than the threshold |
Wp Net Sales R Max Threshold |
Alert is green when Net Sales R is greater than the threshold |
Wp Net Sales R Min Threshold |
Alert is red when Net Sales R is less than the threshold |
Wp Returns R % Max Threshold |
Alert is red when Returns R % is greater than the threshold |
Wp Returns R % Min Threshold |
Alert is green when Returns R % is less than the threshold |
Wp Sell Thru R % Max Threshold |
Alert is green when higher than the threshold |
Wp Sell Thru R % Min Threshold |
Alert is yellow when less than the threshold |
Wp Do Not Alert |
Prevents alerting of the department/locations that are checked |
Sales and Markdowns Sub-Step
After seeding, you can verify the seeded sales and markdown data in this view.
Figure 11-7 Plan Sales and Markdowns View
Sales and Markdowns View
You can verify the seeded sales and markdown data in this view. After you have seeded, develop the sales and markdown location plan for those departments.
If you are planning a Wholesale/Franchise location, use this view to plan Net Sales. Then use the W/F Sales and Markup View to complete planning.
There are several measure profiles available to logically guide you through the plan variables.
A measure profile is selected by clicking the Edit View button next to the Measure tile.
Figure 11-8 Location of Edit View Button
The following measure profiles are available:
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Sales (Default)
The sales measure profile shows the key sales planning metrics including sales, net sales, and returns.
To use the Average Sales/Net Sales/Returns Per Location measures to see averages, you must rollup the Location Dimension to a level above Location. The average calculated is limited to the average of the active locations of the workspace segment. A segment with one location will have an average equal to the Wp. In the same way, a level with only a single location which rolls up to it will also have an average equal to the Wp.
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Markdowns
The markdowns measure profile shows sales against markdowns.
To use the Average Sales/Net Sales/Markdowns Per Location measures to see averages, you must rollup the Location Dimension to a level above Location. The average calculated is limited to the average of the active locations of the workspace segment. A segment with one location will have an average equal to the Wp. In the same way, a level with only a single location which rolls up to it will also have an average equal to the Wp.
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Units
The most important asset metrics are inventory units and inventory cost because these metrics impact cash flow.
To use the Average Sales/Net Sales/Returns Per Location measures to see averages, you must rollup the Location Dimension to a level above Location. The average calculated is limited to the average of the active locations of the workspace segment. A segment with one location will have an average equal to the Wp. In the same way, a level with only a single location which rolls up to it will also have an average equal to the Wp.
Local Currency Plan View
If the Local Currency option is provisioned, then the Local Currency view is available. The Local Currency view displays your plan using the local currency conversion set up by the administrator.
Plan W/F Sales and Markup View
If the Wholesale Franchise options are provisioned, then this view is available to plan. Wholesale/Franchise sales are typically tracked and managed as a separate channel of a retail business. Use the Wholesale/Franchise Sales and Markdowns view to build your sales, markup, and markdowns that you will make as wholesaler or franchisor.
Inventory & Gross Margin Sub-Step
Inventory & Gross Margin is the third sub-step in Create Plan step.
Plan Receipts/Inventory View
After you have developed the sales and markdown plan, develop a receipts and inventory plan that can support the sales and markdown plan. The purpose of this step is to ensure that you have a receipt and inventory plan that supports the sales that you are projecting. Like the Plan Sales and Markdowns view, the Plan Receipts/Inventory view contains several Ly metrics that you can reference when setting your targets. Additional measures can be used to adjust your inventory targets.
There are two measure profiles for this view:
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Cost (Default)
The planning is focused on total cost rather than units. This profile is the most comprehensive view of variables impacting inventory.
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Units
The planner focuses on receipt and inventory flow with units. Average Unit Retail (or Cost) are additional KPIs.
Figure 11-9 Plan Receipts/Inventory View
Gross Margin View
Use the Gross Margin view to evaluate the gross margin created from your sales and markdown plan and receipts and inventory plan. Determine whether the planned gross margin meets your gross margin goal. If it does not, return to the Plan Sales and Markdown Plan and Plan Inventory and Receipt Plan steps to adjust your receipt markups and receipt flow. When you return to the Plan Sales and Markdowns view, adjust the markdown plans, but do not change the sales. Continue this process until you are satisfied with the gross margin.
Figure 11-10 Gross Margin View
Define Location Rollup
The Define Location Rollup view is used to select location attributes to view in an alternate hierarchy. Nested location attribute roll up is provided with three levels. A planner can set up to three different combinations for nested rollup with a maximum of three levels in each combination. Nesting of dynamic attributes is a configurable option. For example: As a first combination, you select Climate as a Level 1, Customer Type as Level 2, and Store Format as Level 3 by clicking the list of attributes available. This allows you to roll up your location by Climate, then Customer Type inside each Climate and then by Store Format inside each customer type. This feature also allows you to view subtotals for each of the levels. You can edit subtotals and spread the values to all the associated child positions.
Perform the following steps to complete this process:
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Select up to three dynamic location attributes from the list.
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Run the Refresh Location Rollup Application Action.
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To view the location attribute:
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In a view that displays location level, click the Location Hierarchy tile.
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Select the attribute (Attribute 1 or 2 or 3) that you would like to view in the nested dynamic rollup.
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Click OK.
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Figure 11-11 Define Location Rollup
Figure 11-12 Edit View
Table 11-4 Define Location Rollup View Measure
Label | Definition |
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Location Attribute 1, 2, 3 |
List to present location attributes for nested dynamic product hierarchy rollup |
Review and Reconcile to MFP Step
In this step, review and compare your plan to ensure the goals set forth in the merch plan are being met.
Review and Reconcile View
When you believe you are ready to approve your Location plans, use the Review Plan view to make sure the location plan meets merchandise planners expectations.
There are several measure profiles in this view to quickly guide you to the plans you wish to review:
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MFP OP
This measure profile shows the main Working Plan metrics for comparison with Original Plan metrics from the Create Merch Plan Task. Original Plan is the plan as it was initially approved. Typically, it got approved pre-season and stays fixed when the period becomes in-season.
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MFP CP
This measure profile shows the main Working Plan metrics for comparison with Current Plan metrics from the Create Merch Plan. Current Plan is a version of the plan that is approved in-season (and is actualized for elapsed/historical periods).
Review and Approve Step
In this step, the location planner can review and approve the created location plan. The Review and Approve step contains two views: Review Plan and Approve Plan.
In-season Review and Reforecast Step
The Planner uses the review the plans during In-season process. Planners can make adjustments in views during the In-season location plan.
Review and Reconcile with MFP Sub-step
In this step, review and compare your plan to ensure the goals set forth in the Merch Plan are being met. This sub-step has two views:
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Review and Reconcile View
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Define Location Roll up View
Review and Reconcile View
Use the MFP OP and the MFP CP measure profiles to reconcile your location plan to the Merch Plan.
Define Location Roll Up View
The Define Location Rollup view is used to select location attributes to view in an alternate hierarchy. Nested location attribute roll up is provided with three levels. A planner can set up to three different combinations for nested rollup with a maximum of three levels in each combination. Nesting of dynamic attributes is a configurable option. For example: As a first combination, you select Climate as a Level 1, Customer Type as Level 2, and Store Format as Level 3 by clicking the list of attributes available.
This allows you to roll up your location by Climate, then Customer Type inside each Climate and then by Store Format inside each customer type. This feature also allows you to view subtotals for each of the levels. You can edit subtotals and spread the values to all the associated child positions.
Perform the following steps to complete this process:
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Select up to three dynamic location attributes from the list.
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Run the Refresh Location Rollup Application Action.
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To view the location attribute:
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In a view that displays location level, click the Location Hierarchy tile.
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Select the attribute (Attribute 1 or 2 or 3) that you would like to view in the nested dynamic rollup.
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Click OK.
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Figure 11-14 Define Location Rollup View
A measure profile is selected by clicking on the Edit View button next to the Measure tile.
Figure 11-15 Edit View
Sales and Returns Sub-step
After pre-season plan, review the sales return plan during In-season. This has similar views and measures as Sales and Returns steps from pre-season step.
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Plan Sales / Markdown
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Local – Sales / Markdown
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W/F Sales and Markdown
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Define Location Roll up
Inventory and Gross Margin Sub-step
The Planner can use this sub-step to review the inventory and margins against the target during In-season process. This step has similar views and measures as Inventory and Gross Margin sub-step from pre-season step.
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Plan Receipts and Inventory
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Gross margin
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Local – Gross Margin
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W/F Gross Margin
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Define Location Roll up
Review and Re-Approve Step
Use this step to review the location plan during in-season for On Order and Open to Buy and to update the plan and reapprove if necessary. The Review and Re-Approve step has two views: Review and Re-Project Plan and Approve Plan.