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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:
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Create Plan Step
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Review and Reconcile to MFP Step
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Review and Approve Step
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In-season Review and Reforecast Step
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Review and Re-Approve Step
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All Measures
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).
Table 11-2 (Cont.) Seeding Options
| Seeded Measure | Seed with Version |
|---|---|
| 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 |
|---|---|
| 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:
1. Click the dimension whose value (position) you want to change.
Edit View
7. 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”.
Note
To clear the seeded data, use the Clear Plan custom menu option.
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 POS R % Min Threshold | Alert is red when Wp GM POS R % is less than the threshold |
| Wp Markdown POS R % Max Threshold | Alert is red when Markdown POS 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 |
| 1. Plan Sales/Markdowns | ||||
|---|---|---|---|---|
| v | Calendar # | AllDimensions | ||
| o Measure(1.Retai | l) + 2 | © 1000Charlotte | > | |
| Calendar Measure | 2/11/2023 T | 2/18/2025 tT | 2/25/2023 T | 3/4/2025 + |
| Wp Sales R | 21,138.83 | 25,758.57 | 30,798.27 | 35,697.99 |
| Fest Sales R | 21,355.47 | 26,009.45 | 31,086.50 | 36,022.55 |
| Wp Sales R var Fest% | -1.0% | -1.0% | -0.9% | -0.9% |
| Ly Sales R | 19,217.12 | 25,416.88 | 27,998.45 | 32,452.72 |
| Wp Sales R var Ly% | 10.0 % | 10.0% | 10.0% | 10.0 % |
| Wop Avg Sales R per Location | 21,138.83 | 25,758.57 | 30,798.27 | 35,697.99 |
| Wp Ave Sales R per Sq M | 13.86 | 16.89 | 20.19 | 23.41 |
| Wp Net Sales R | 12,307.79 | 14,939.97 | 17,862.99 | 20,704.84 |
| Ly Net Sales R | 11,188.90 | 13,581.79 | 16,239.08 | 18,822.58 |
| Wp Net Sales R var Ly % | 10.0% | 10.0% | 10.0% | 10.0 % |
| Wp Ave Net Sales R per Bocce | 12,307.79 | 14,939.97 | 17,862.99 | 20,704.84 |
The following measure profiles are available:
- 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.
- 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.
- 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.
| =1.ReceiptsandInventory |
|---|
|v
&€ ||Glenda
&|A||Location
#& f|Product
&|@|
|---|---|---|---|---|---|---|
|(0 ||Measure(1.Retail)|~2|<_
Brick&Mortar|>
| <
3|0018ShortSleeveTees|
>|
|Measure|Calendar|2/11/2023
T|2/18/2023
‘|2/25/2023
v|3/4/2023
T|3/11/2023
x|
|WpBOP R||4,329,510.68|4,285,696.27|4,197,158.00|4,538,224.60|4,450,132.20|
|LyBOPR||3,810,227.45|3,730,575.83|3,577,772.96|4,265,484.19|4,105,086.84|
|Wp Receipts|R|0.00|0.00|429,446.47|0.00|0.00|
|Wp Receipts|MU %|0.0%|0.0%|50.0%|0.0%|0.0%|
|Ly Receipts R||0.00|0.00|429,446.47|0.00|0.00|
|Ly Receipts M|U %|0.0%|0.0%|50.0%|0.0%|0.0%|
|Wp Receipts|R var Ly%|0.0%|0.0%|0.0%|0.0%|0.0%|
|Wp NetSales|R|38,426.06|74,264.47|74,103.24|74,134.21|74,170.03|
|LyNetSales|R|34,932.78|67,513.15|67,366.58|67,394.74|67,427.30|
Table 11-4 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 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:
- 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.
- 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.
Review Plan View
In this step, review the location plan you created. The purpose of reviewing the plan is so that you can understand the goals that your plan should meet.
| © 1. Review Plan | ||||
|---|---|---|---|---|
| 6 Calendar | Product | vA | ||
| Oo | Measure(1.0P) | [<500Wom _ | en’sCasualsTra | ditional > |
Calendar 1/21/2023 1/2 | 8/2023 | 2/4/2023 | nt/2023 | 2/18/2028 2/25/2023 |
| Measure | ||||
| WpNetSalesR 5,247.91 | 5,704.02 | 6,069.32 | 5,042.82 | 5,885.82 6,912.87 |
| Op NetSales R 0.00 | 0.00 | 0.00 | 5,042.82 | 5,885.82 6,912.87 |
| Wp NetSales R varOp% 00% | 0.0% | 0.0% | 0.0% | 0.0% 0.0% |
| Wp Markdown POS R% 0.0% | 0.0% | 0.0% | 0.0% | 0.0% 0.0% |
| Op Markdown POS R% 0.0% | 0.0% | 0.0% | 0.0% | 0.0% 0.0% |
| WpMarkdown POSR 0.00 | 0.00 | 0.00 | 0.00 | 0.00 0.00 |
| OpMarkdown POSR 0.00 | 0.00 | 0.00 | 0.00 | 0.00 0.00 |
| WpMarkdown POSR varOp% 0.0% | 0.0% | 0.0% | 0.0% | 0.0% 0.0% |
| WpMarkdown PermR 977.33 | 1,084.78 | 1,199.97 | 652.75 | 607.49 1,142.80 |
| WpMarkdownPermR% 0.2% | 0.3% | 0.2% | 0.1% | 0.1% 0.2% |
| ¥ 1. Reviewand Re-Project | Plan | ||||
|---|---|---|---|---|---|
| 6 | Calendar | 7 | Produ | ||
te | Measure(1.Retail) v | ~0 | [< | 500Women’sCasuals | Traditional © > |
| Calendar | 1/28/2023 | 2/4/2023 | 2/11/2023 2 | /18/2023 2 | /25/2023 |
| Measure | |||||
| WpBOPR | 425,021.63 | 504,034.18 | 488,802.96 | 476,644.89 | 463,203.72 |
| Wp NetSales R | 5,704.02 | 6,069.32 | 5,042.82 | 5,885.82 | 6,912.87 |
| Wp Markdown POSR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| WpMarkdown Perm R | 1,084.78 | 1,199.97 | 652.75 | 607.49 | 1,142.80 |
| CpMarkdown Perm R | 1,084.78 | 1,199.97 | 652.75 | 607.49 | 1,142.80 |
| WpMarkdown PermR varCp | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Wp Receipts R | 46,483.14 | 0.00 | 0.00 | 0.00 | 38,974.31 |
| Cp Receipts R | 47,341.32 | 0.00 | 0.00 | 0.00 | 38,974.31 |
| Wp Receipts R varCp% | -1.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Wp ReceiptsMU% | 50.0% | 0.0% | 0.0% | 0.0% | 50.0% |
| CpReceiptsMU% | 50.0% | 0.0% | 00% | 00% | 50.0% |