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9
Create Merch Plan Task
The Planner role is usually associated with the merchandise planner in the merchandise planning organization. During pre-season planning, the Planner receives department targets from the Planning Manager and uses those targets as the financial direction for planning.
The Planner references those targets when creating the subclassmerch plans. The Planner then reviews the plan against target expectations, reconciles it with location planning when location plans exist, and submits the completed plan for approval.
The Planner will start pre-season activity with the Create Merch Plan task. This task belongs only to the Merch Planner role.
In Modular MFP, pre-season and in-season plan activities are organized into separate tasks. Use the pre-season workspace to create the initial plan, review it against targets, reconcile it with location planning, and approve before the season begins.
Use the in-season workspace after actuals are available to review performance, update the forecasted plan, manage Open to Buy, reconcile changes, and re-approved plans.
The planner is presented with the activity Create Merch Plan, and it consists of two tasks: Create Merch Plan Pre-season and Create Merch Plan In-season.
Create Merch Plan Pre-Season Task
The Pre-Season Plan workspace is where the Planner builds the original merchandise plan before the season starts. The Planner creates the plan for the required subclass, channel, and calendar scope by completing the pre-season planning activities in sequence.
The pre-season task includes the following steps:
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Create Plan
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Review & Submit Plan
Create Plan Step
To create the plan, the basic approach is to complete the following steps within the views provided in the Create Plan step:
1. Review the published Target values so the subclass plan is created within the Planning Manager’s direction. The Targets are easily reviewed in the Reconcile with Targets view. Because you have not seeded any plans, the Wp versions of the plan will be irrelevant in the Target review.
2. Select the local currency rate for planning.
3. In Sales/Markdowns, plan the sales, markdowns, returns, and so on, you are projecting. Use forecasted sales and Ly as a guide.
4. Plan the required inventory and receipts.
5. Review the Gross Margin results.
Tip
As you build your plan, click Commit when you are satisfied with the intermediate state. This creates a permanent snapshot of the as-is state. This creates a restore point you can revert to if you go down a path that is unsatisfactory.
Tabs and Views in this Step:
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Seed Plan Tab:
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Initialize View
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Review Portfolio Optimization View
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Select Local Currency View
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Set Alert Thresholds Voew
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Seed Plan Tab
The first action that the Merch Plan users complete when creating a new plan is to seed the plan with the Seed Plan view.
Application Action
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Seed: Seed the plan; this copies the seed source into the Wp version.
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Clear Plan: Clear the seeded data from the Wp plan.
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Receive Portfolio Opt: To retrieve the Portfolio Optimization results for the selected product.
Initialize View
With this view, you can choose to seed your plan with Last Year (LY), Forecast (Fcst), or Portfolio Optimization data to create a demand curve on which to spread the new plans 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, forecast (plus last year’s performance), or Portfolio Optimization results.
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 9-1 Initialize 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 (LY), Forecast (Fcst), or Portfolio Optimization data output. 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. |
details on modules, refer to the Oracle Merchandise Financial Planning Cloud Service Starter Kit Guide .
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.
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 MP: 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 POS R % Max Threshold | Alert is red when Markdown POS R % is greater than the threshold |
| Wp Markdown POS R % Min Threshold | Alert is green when Markdown POS 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 subclass/channels that are checked |
Create Plans Tab
The Create Plans tab brings together the core planning views used to build the merchandise plan after the plan has been seeded or manually initialized. In this tab, the Planner develops the sales, markdown, and return plan; builds the supporting inventory and receipt plan; and reviews gross margin to confirm that the plan supports the intended financial outcome.
Forecast, Last Year, and Target values should be used as reference points while adjusting the Working Plan to reflect the subclass strategy for the season. As the plan is developed, sales and markdown decisions should be reviewed together with Beginning-of-Period inventory, Endof-Period inventory, receipts, turn, and stock-to-sales to confirm that inventory flow supports the projected demand and intended stock position.
Gross margin and net gross margin should be reviewed throughout the planning process. If the plan does not meet the intended margin objective, review the sales, markdowns, returns, receipts, inventory, markup, vendor funding, royalty, and cost assumptions before continuing to reconciliation and approval.
Sales and Markdowns View
In the Sales and Markdowns view, you plan net sales, promotions, and markdowns. Sales are the revenue generated by selling goods or services. Regular priced sales yield the greatest margin, however successful promotions drive more traffic and completion of sales. Though the promotional sale likely includes markdown, the overall increase in sales should outweigh the
| 1. Sales | and Markdowns | |||||
|---|---|---|---|---|---|---|
| vy 6 | Glendar & | AG | Produt | |||
| (0_ | Measure(1.Sale | sandMar…»2 | [<]Brick | &Mortara© > | [x30018ShortSlee | |
Measure | Calendar | 2/11/2023 tT | 2/18/2023 + | 2/25/2023 tT | 3/4/2023 3 T | /11/2023 3/18/2023 ¢ tT |
| Wp Sales R | 63,495.63 | 126,997.90 | 126,954.22 | 126,958.33 | 126,945.73 127,073.16 | |
| Fest SalesR | 76,316.91 | 152,634.48 | 152,580.38 | 152,586.01 | 152,567.62 152,723.10 | |
| WpSalesRva | r Fest% | -16.8% | -16.8% | -16.8% | -16.8% | -16.8% -16.8% |
| LySalesR | 57,723.30 | 115,452.64 | 115,412.93 | 115,416.66 | 115,405.21 115,521.05 | |
| Wp Sales R v | ar Ly % | 10.0% | 10.0% | 10.0% | 10.0% | 10.0% 10.0% |
| MPWp Sales | R contrib Prod% | 3.1% | 5.8% | 5.3% | 48% | 5.8% 6.0% |
| MP Ly Sales | R contrib Prod % | 2.9% | 5.3% | 48% | 44% | 5.3% 5.5% |
| MPWp Sales | R contrib Time % | 1.0% | 1.9% | 1.9% | 1.9% | 1.9% 1.9% |
| MPLySales | RcontribTime% | 0.9% | 18% | 18% | 18% | 18% 18% |
| > Local -SalesandMarkdow | ns [< Brick&Mortar > [< | 3018Short SleeveTe | es > | |
|---|---|---|---|---|
| Calendar | 2/12/2022 2/19/2022 | 2/26/2022 | 3/5/2022 | |
| Measure | ||||
| Wp Sales LR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| Ly SalesLR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| Wp Sales LR var Ly% | 0.0% 0.0% | 0.0% | 0.0% | 0.0% |
| Wp NetSalesLR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| Ly NetSales LR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| Wp NetSales LR var Ly% | 00% 0.0% | 00% | 00% | 0.0% |
| Wp Markdown POS LR% | 0.0% 0.0% | 0.0% | 0.0% | 0.0% |
| WpMarkdown POS LR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| LyMarkdownPOSLR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| Wp Markdown POS LR var Ly ov | 0.0% 0.0% | 0.0% | 0.0% | 0.0% |
| WpMarkdown Perm LR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| LyMarkdownPermLR | 0.00 0.00 | 0.00 | 0.00 | 0.00 |
Receipts and Inventory View
Use the Receipts and Inventory view to plan BOP inventory, EOP inventory, receipts, turn, stock-to-sales, and related inventory measures. Inventory turn is an important indicator of the effectiveness of the planned inventory. It tells you how many times stock is being sold and repurchased over a given period of time. Turn is reviewed in this workspace view. Module reference : Merch Plan Inventory & Receipt, Merch Plan Inventory & Receipt Units. For more details on modules, refer to the Oracle Merchandise Financial Planning Cloud Service Starter Kit Guide .
Note
The adjustments you made to the Sales and Markdowns view are visible in this view if you have clicked Calculate.
There are several measure profiles available to guide you through various approaches to planning inventory and receipts:
- Retail
The Retail profile is the default profile. The planning is focused on total retail rather than units, and sale type . This profile is the most comprehensive view of variables impacting inventory.
- Inventory by Type
In this profile, you can review and maintain a breakdown of inventory by sales type: Regular + Promo, and Clearance.
- Units
The most important asset metrics are inventory units and inventory cost because these metrics impacts cash flow. In this view, you can directly maintain EOP inventory, Average Unit Retail, plus shrink, Mark Out of Stock (MOS), and Move to Clearance (MOC) in terms of units.
Use the following best practices to plan the receipts and inventory:
1. Plan the receipt flow and then evaluate the average inventory and turn.
2. Review the Receipts Markup (MU) for accuracy. Often this will follow the keystone 50%, but many variables can impact the decision on markup: from competitor pricing to freight costs, and overhead operating expense.
3. Review the Wp CMU % measure. Cumulative markup rate (CMU %) is a blend of the beginning of period (BOP) inventory retail and cost with the future receipt retail and receipt cost. The Wp CMU % directly affects the cost of goods sold (COGS), which then affects the gross margin.
4. Review the Wp Stock to Sales R ratio. Make adjustments to Sales and other inventory measures (Receipts, Move out of Stock, Move to Clr, and so on) to achieve the desired stock to sales ratio.
| :} 1.Receip | tsand Inve | ntory | ||||
|---|---|---|---|---|---|---|
| vy £€ | Glenda | &3 | Location gy2 | |||
| (0 | Measure(1 | .Retail) + 2 | < Brick&Mortar | © > | ||
| Measure | Cal | endar 2/11/2023 T | 2/18/2023 ‘i | 2/25/2023 a T | 3/4/2025 T | 3/11/2025 T |
| 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 Net Sales | R | 38,426.06 | 74,264.47 | 74,103.24 | 74,134.21 | 74,170.05 |
| LyNetSales | R | 34,932.78 | 67,513.15 | 67,366.58 | 67,394.74 | 67,427.30 |
| 1. Gross | Margin | |||||
|---|---|---|---|---|---|---|
| 8 | ||||||
| (0) | Measure (Default) | + | «Brick&Mortar | > < 3 | 0018ShortSleeveTees | |
| Measure | Calendar | 2/11/2023 7 | 2/18/2023 + | 2/25/2023 tT | 3/4/2025 tT | 3/11/2025 t |
| WpGMR | 16,907.04 | 32,187.23 | 32,014.54 | 31,814.65 | 31,823.61 | |
| WpGM R% | 44.0% | 43.3% | 43.2% | 42.9% | 42.9% | |
| LyGMR | 15,370.03 | 29,261.12 | 29,104.13 | 28,922.41 | 28,930.55 | |
| LyGMR% | 44.0% | 43.3% | 43.2% | 42.9% | 42.9% | |
| WpGMRvar | Ly % | 10.0 % | 10.0 % | 10.0 % | 10.0% | 10.0% |
| WpVendorF | undsR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| LyVendor Fu | nds R | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Wp Royalties | R | 2,254.42 | 4,402.97 | 4,460.89 | 4,522.94 | 4,509.48 |
| LyRoyalties | R | 2,049.47 | 4,002.70 | 4,055.35 | 4,111.76 | 4,099.53 |
| ¥ Reviewwith Target | ||||||
|---|---|---|---|---|---|---|
| 6 | Calendar #& OG | Locat | ion | |||
| 18] | Measure(Default) | ~ [< Brick | &Mortar © | > | [< 500Women’s | |
| Calendar | 1/7/2023 1/1 | 4/2023 | 1/2 | 1/2023 1/2 | 8/2023 | 2/4/2023 |
| Measure | ||||||
| Wp Sales R | 176,922.48 | 159,215.19 | 212,860.69 | 230,046.50 | 244,784.52 | |
| TgtSales R | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Wp Sales RvarTgt% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
| Wp NetSales R | 157,981.66 | 93,966.34 | 125,927.83 | 136,369.17 | 144,390.01 | |
| Tgt NetSalesR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Wp NetSales R var Tgt% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
| WpMarkdownPOSR | 66,143.00 | 65,120.00 | 68,200.00 | 76,100.00 | 69,125.00 | |
| Wp Markdown POS R% | 41.9% | 69.3% | 54.2% | 55.8% | 47.9% | |
| TgtMarkdownPOSR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| ~ Reviewwith Location Plan | |||||
|---|---|---|---|---|---|
| 6 | Calendar 2 | Lo | |||
| oO | Measure(1.Wp/LPCp) | v 0 | [ | < Brick&Mortar© | > |
| Calendar | 1/7/2023 | 1/14/2023 | 1/21/2023 | 1/28/2023 2/4/2023 | 2/11/2023 |
| Measure | |||||
| WpSales R | 176,922.48 | 159,215.19 | 212,860.69 | 230,046.50 244,784.52 | 204,263.47 |
| LPCp Sales R | 194,610.62 | 175,359.29 | 234,857.78 | 254,136.25 270,251.31 | 202,654.67 |
| Wp Sales RvarLPCp% | -9.1% | -9.2% | 94% | -9.5% -9A% | 08% |
| WpNetSalesR | 157,981.66 | 93,966.34 | 125,927.83 | 136,369.17 144,390.01 | 121,407.33 |
| LPCp Net Sales R | 173,632.37 | 103,495.60 | 138,923.01 | 150,639.37 159,411.47 | 120,448.38 |
| WpNet Sales R var LPCp% | -90% | -9.2% | 94% | -9.5% -94% | 0.8% |
| WpMarkdownPOSR | 66,143.00 | 65,120.00 | 68,200.00 | 76,100.00 69,125.00 | 0.00 |
| WpMarkdown POSR% | 41.9% | 69.3% | 54.2% | 55.8% 47.9% | 0.0% |
| LPCpMarkdown R | 0.00 | 0.00 | 0.00 | 0.00 0.00 | 0.00 |
| LPCp Markdown R% | 0.0% | 0.0% | 00% | 0.0% 0.0% | 0.0% |
| WpMarkdownPOSRvarLP | 0.0% | 0.0% | 0.0% | 0.0% 0.0% | 0.0% |
This measure profile shows the main Working Plan metrics for comparison with Original Plan metrics. 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.
Application Action
- Approve: Approve the plan, it copies Wp (Working Plan) values to Cp (Current Plan) & Op (Original Plan).
Approve Plan View
In this view, you can approve the completed merch plan.
When plan is approved, the Working Plan (Wp) is copied to Original Plan (Op) and Current Plan (Cp).
To submit a plan for approval by the Planning Manager:
1. Select a check mark in the Wp Submit measure.
2. Optional: Enter information about the working plan in the Wp Submit Notes field.
3. Click the Submit Plan button at the top right of the view.
4. A success message is displayed. Click OK to close it.
Approved Plan View
In this view, you can verify the plan that is approved.
Create Merch Plan In-Season Task
Use the in-season workspace after the season has started and actuals are available. The Planner reviews current performance, updates the forward-looking plan, manages Open to Buy (OTB), reconciles changes against targets and location plans, and submits revised plans when approval is required.
In-season planning focuses on keeping the plan aligned with current business performance. Open to Buy is a key part of this process because it shows the amount available for future receipts after considering planned and projected sales, markdowns, receipts, on-order activity, and inventory. OTB is the amount of money budgeted during the In-season to purchase goods that have not yet been received or ordered. The Planner decides In-season how to spend this money to reach strategic targets.
The in-season task includes the following steps:
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Update Plan
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Review & Submit Plans
Update Plan Step
Use this step to update Open to Buy and review weekly projections. Planning Manager compare planned and projected inventory levels, evaluate available OTB, and determine whether future receipts should be purchased, reduced, or canceled based on projected sales, markdowns, receipts, and inventory.
Views in this Step:
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Sales & Inventory Tab:
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Open to Buy Projection view
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Sales & Returns view
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Inventory & Receipt view
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Gross Margin view
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Seed Updated Sales view
Open to Buy Projection View
Managing Open to Buy (OTB) is the primary In-season task for the Planner. Each week, you will review last week’s sales and its impact on your BOP/EOP inventory for the current and future weeks.
OTB helps identify out how much inventory you need to buy to make your sales projections. It represents the amount of money you have available to spend on merchandise. Simply put, OTB is the difference between how much inventory is needed and how much is actually available. This includes on hand, and on-order (including in-transit).
You will look to increase receipts if you have available open to buy and decrease receipts if not. You may have some flexibility to go over your OTB for a week as long as the month is on target. Consider the month as a whole and whether you want to withhold some OTB for opportunity buys that may come up. Use OTB to understand the variance between the planned and projected inventory levels. This variance is shown in the Wp OTB R measure. OTB indicate how many additional receipts can be purchased. Users should understand if their planned receipts keep them on the overall Cp EOP inventory plan. To understand the variance between the Cp EOP inventory plan and the Wp EOP inventory plan, reference the measure Wp EOP R var Cp%. Use this view to validate what OTB you have available and then start adjusting your plan. Then, confirm that your updates can be obtained given the OTB constraints you may have. Module reference : Merch Plan Inventory & Receipt, Merch Plan Inventory & Receipt Units. For more details on modules, refer to the Oracle Merchandise Financial Planning Cloud Service Starter Kit Guide .
The following profiles are available:
- Default
This measure profile focuses on key metrics of total sales, markdowns, receipts, and on order to summarize open to buy.
- Units
This measure profile focuses on unit and average unit cost key metrics for sales, receipt, and on order.
Review with Location Plan View
In the Review with Location Plan view, you directly compare Wp (working merch plan) to a location plan. By comparing the merch plan to the location plan metrics, you can better understand where there are misalignments that need to be corrected. There are several variance measures that quickly guide you to areas of difference.
There are several measure profiles in this view to quickly guide you to the plans you wish to review:
- Wp/LPCp (Default)
This measure profile shows the key Working Plan metrics for comparison with Location Plan, Current Plan metrics. Current Plan is a version of the plan that is approved In-season (and is actualized for elapsed/historical periods).
- Wp/LPOp
This measure profile shows the key Working Plan metrics for comparison with Location Plan, Original Plan metrics. 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.
Review & Reconcile with Target View
The Review & Reconcile with Target view contains the Planning Manager’s Target (Tgt) measures as well as planning (Wp) measures. Use this view to compare the Tgt measures to the corresponding Wp measures. By comparing the targets to the planning metrics, you can better understand what your plan needs to achieve. There are several Tgt-to-Wp variance measures that quickly guide you to areas of difference.
Approve Plan
In this view, you can approve the completed Merch Plans.
After you have completed your adjustments, you can approve the plan and the Working Plan (Wp) is copied to Original Plan (Op) and Current Plan (Cp).
Approved Plan View
In this view, you can verify the plan that is approved.