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.
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 |
|---|---|
|
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 Last Year's (Ly) or Forecast (Fcst) 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.
Table 11-2 Seeding Options
| Seeded Measure | Seed with Version |
|---|---|
|
Wp Sales R |
Ly/Fcst/Tgt Note: Only Target measures corresponding Variance to Ly (var Ly) measures will be seeded. |
|
Wp Sales U |
Ly/Fcst/Tgt Note: Only Target measures corresponding Variance to Ly (var Ly) measures will be seeded. |
|
Wp Markdown R % |
Ly/Tgt |
|
Wp Returns R % |
Ly/Tgt |
|
Wp Returns AUR |
Ly/Tgt |
|
Wp Receipts R |
Ly |
|
Wp Receipts U |
Ly |
|
Wp Receipts MU % |
Ly |
|
Wp Shrink R % |
Ly |
|
Wp Shrink AUR |
Ly |
|
Wp Shrink MU % |
Ly |
|
Wp Transfers In/Out R |
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 |
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 |
|---|---|
|
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 11-2 Plan Sales/Markdowns View
Plan Sales/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 11-3 Location of Edit View Button
The following measure profiles are available:
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Retail (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 dimension 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 sales measure profile shows the key sales units 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 dimension 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, 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, 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.
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.
Local Currency Plan View
If the Wholesale Franchise or Local Currency options are provisioned, then there are additional views to support planning sales and markdowns specifically catered to those options.
The Local Currency Plan view shows the Gross Margin plan using the local currency conversion set up by the administrator.
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 11-4 Define Location Rollup
Figure 11-5 Edit View
Table 11-3 Define Location Rollup View Measure
| Label | Definition |
|---|---|
|
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 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.
-
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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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.
