Mirror of Oracle documentation
Converted for search and offline reading. Authoritative source: Oracle. Diagrams and some complex tables are simplified — check the PDF when in doubt.
8 Create Merch Plan Targets Task
The Planning Manager role is usually associated with senior and middle management in the merchandise planning organization. The objective of the Planning Manager is to develop strategic and department-level targets that set the financial guidance for the planning organization.
Planning Managers typically begin planning at a minimum two to six months in advance of the period being planned. This is known as pre-season planning. During this time, the planning manager will create the high level merchandise financial plan (targets) for the season or for the entire year.
The Planning Manager is presented with the activity called Create Merch Plan Targets and a task of the same name. This task belongs solely to the Planning Manager role.
This task includes the following steps:
-
Create Targets Step
-
Review and Publish Targets Step
-
Review and Approve Plan Step
-
In-Season Review and Re-Project Targets Step
The first two steps are related to pre-season creation and publication of targets to the Merch Planner. The third step involves reviewing and approving or rejecting plans submitted by the Merch Plan role. The fourth step is used for in-season adjustments to targets.
The Planning Manager must complete the first two steps to publish the strategic targets to the Planner.
Create Targets Step
To create the Merch Targets the basic approach is to complete the following steps within the views provided in the Create Targets step:
1. Select VAT and/or Local Currency rates for planning.
2. Seed the plan using Last Year (Ly) or Forecast (Fcst) data to create a base plan.
- Review the Portfolio Optimization data and choose to plan with Portfolio Optimization results.
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 Gross Margin results.
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/Markdowns Sub-Step”.
Note
To clear the seeded data, use the Clear Plan custom menu option.
Review Portfolio Optimization View
The Portfolio Optimization output can be used for seeding the Merch Target Plan. Select the Boolean for dimension scope and click the custom menu action, Receive Portfolio Opt . After the results are populated against the MPO (Portfolio Optimization) measures, you can proceed with seeding the plan from the Initialize view. By default, MFP GA receives Net Sales R as output from Portfolio Optimization and it populates MPO Net Sales R in the view. The portfolio optimization results are retrieved at the year level which are then split into weeks using the LY data reference while seeding. You can choose to configure it for Gross Sales Portfolio Optimization output.
Note
When creating the Merch Target workbook, the scope of the workbook should be at the same level of the scope of the Portfolio Optimization run.
Be
| Returns | MaintenanceSet | up | |||||
|---|---|---|---|---|---|---|---|
| 5 | |||||||
| o | |||||||
| Measure | Calendar | 2/11/2023 | t | 2/18/2023 2/25 tT | /2023 tT | 3/4/2023 3/1 tT | 1/2023 t |
| Online Retur | ns % | 1 | 00.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Buy Online | 65.5% | 65.5% | 65.5% | 65.5% | |||
| Buy Online | 34.5% | 34.5% | 34.5% | 34.5% | 34.5% | ||
| Store Restoc | king $/ U | ie) | (0) | (e) | (e) | fe) | |
| Storeko ar | epoese | 0 | 0 | 0 | 0 | 0 | |
| weauane | paaeeens$/U | fe) | fe) | ie) | 0 | fe) | |
| Return Back | to Online % | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
| BuyOnlineP | ick-UpinStore% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| W/F - Salesand Markdowns | |||
|---|---|---|---|
| vy €8 | Calendar & GZ | Location w 7 Product #& | |
| (0 | Measure(Default) + | [«< Brick&Mortar | > [x] 500 Women’sCasualsT |
| Calendar 2/11/2023 T Measure | 2/18/2023 tT | 2/25/2023_ 3/4/2023 iT tT | 3/11/2023 T |
| Wp W/F Sales R 522,339.25 | 631,714.03 | 749,886.42 865,378.16 | 644,704.67 |
| Ly W/F Sales R 522,339.25 | 631,714.05 | 749,886.42 865,378.16 | 644,704.67 |
| Wp W/F Sales R var Ly% 0.0% | 0.0% | 0.0% 0.0% | 0.0% |
| Wp W/F Net Sales R 522,339.25 | 631,714.03 | 749,886.42 865,378.16 | 644,704.67 |
| WpW/F NetSales R % 100.0 % | 100.0 % | 100.0 % 100.0 % | 100.0% |
| Ly W/F Net Sales R 522,339.25 | 631,714.03 | 749,886.42 865,378.16 | 644,704.67 |
| LyW/F NetSales R% 100.0 % | 100.0 % | 100.0 % 100.0 % | 100.0% |
| Wp W/F Net Sales R var Ly% 0.0% | 0.0% | 0.0% 0.0% | 0.0% |
| ~ Local - Salesand Markdowns | |||
| 6 | Calendar & GH | Locat | ion # GZ Product #& GH |
| (UD | Measure(unsaved) + | < | Brick&Mortar© |
Calendar 2/11/2023 | 2/18/2023 | 2/25/2023 3/4/2023 | 3/11/2023 |
| Measure | |||
| WpSales LR 1,146,712.00 | 2,134,567.50 | 1,798,534.75 1,900,500.00 | 1,879,999.50 |
| LySalesLR 0.00 | 0.00 | 0.00 0.00 | 0.00 |
| WpMarkdownPOSLR 130,487.00 | 150,450.00 | 120,290.00 110,239.00 | 132,103.00 |
| LyMarkdownPOSLR 0.00 | 0.00 | 0.00 0.00 | 0.00 |
Inventory/Receipts Sub-Step
After you have developed the sales and markdown target, develop a receipts and inventory target that can support the planned sales and markdown. The purpose of this step is to ensure that you have a receipt and inventory plan that supports the sales that you are projecting.
Receipts and Inventory View
Receipts and Inventory is where you will plan Beginning-of-period (BOP)/End-of-period (EOP) inventory, receipts, turn, and so on. This view is frequently planned at a month level. At a month level, EOP is usually targeted to be about the same as BOP and then ramp up for holiday gift giving is factored in. After planning the month, it is wise to review the results at a week level to ensure there are no undesirable anomalies.
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. The goal is to increase your turn as much as possible, without having to take markdowns. Turn (Wp CUM Turn R) is reviewed in this workspace view.
Another important indicator is Stock to Sales Ratio. The stock to sales ratio is the proportion of inventory on hand at the beginning of a period (such as a week or month) that will support the planned sales in that period.
If the Stock to Sales Ratio rises, (due to an increase in inventory without an accompanying rise in sales), then you are adding more stock without increasing sales. Unless you are intentionally ramping up stock for holiday, promo, and so on, then it is time to hold off on receipts and work on selling down the quantity on that item. The ultimate goal is to reduce your Stock to Sales Ratio as low as possible, without losing sales.
Note
This sub-step is not performed for W/F channels.
There are several measure profiles available to guide you through various approaches to planning inventory and receipts.
Note
The adjustments you made to the Sales and Markdowns view are visible in this view if you have clicked Calculate.
The following measure profiles are available:
- Retail (Default)
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.
| 1. Receip | tsand Inve | ntory | |||||
|---|---|---|---|---|---|---|---|
| vy 6 | Calendar | & GZ | Location #& G2 | Product #& | |||
| Measure | Cal | endar 2/11/2023 ue | 2/18/2023 ae | 2/25/2023 tT | 3/4/2023 tT | 3/11/2023 tT | 3/18/2023 it |
| WpBOP R | 51,768,621.92 | 51,765,408.78 | 51,759,632.96 | 55,682,378.30 | 55,670,301.02 | 55,664,683.25 | |
| LyBOPR | 41,298,877.14 | 40,032,895.48 | 38,572,417.53 | 44,569,794.66 | 42,536,586.87 | 40,964,118.47 | |
| Wp Receipts R | 0.00 | 0.00 | 3,932,315.06 | 0.00 | 0.00 | 0.00 | |
| Wp Receipts | MU % | 0.0% | 0.0% | 50.0% | 0.0% | 0.0% | 0.0% |
| LyReceipts R | 0.00 | 0.00 | 3,932,315.06 | 0.00 | 0.00 | 0.00 | |
| Ly ReceiptsM | U % | 0.0% | 0.0% | 50.0% | 0.0% | 0.0% | 0.0% |
| Wp Receipts R | var Ly% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| WpNetSales | R | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 552,507.28 |
| LyNetSalesR | 522,339.25 | 631,714.03 | 749,886.42 | 865,378.16 | 644,704.67 | 552,507.28 |
| 2. Movet | o Clearance | ||||||
|---|---|---|---|---|---|---|---|
| v | Calenda & | 7 | Location & G | Product & | |||
| oo | Measure(Default) | + 7 | < Brick&Mortar | > | < 50 | 0 Women’sCasuals | |
| Measure | Calendar | 2/11/2025 t | 2/18/2023 t | 2/25/2023 t | 3/4/2023 t | 3/1 | 1/2023 t |
| LLy NetSales | R | 470,596.06 | 568,267.48 | 675,336.82 | 779,876.17 | 580,428.36 | |
| Ly NetSales R | 522,339.25 | 631,714.03 | 749,886.42 | 865,378.16 | 644,704.67 | ||
| CpNetSalesR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||
| Wp Net Sales | Rvar Cp% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
| Wp NetSal R | es varLy% | -100.0 % | -100.0 % | -100.0 % | -100.0 % | -100.0% | |
| Wp Net Sales | R | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| WpNetSales | Reg+PromoR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Gross | Margin | |||||
|---|---|---|---|---|---|---|
| vy 6 | Calendar | & GZ | Location & @ | Product | ||
| 1a | < Brick&Mortar | © > < | 500 Women’sCasuals | Tra… ©@ > | ||
| Measure | Cal | endar 7/1/2023 1 | 7/8/2023 7 | 7/15/2023 tr | 7/22/2023 “a | 7/29/2023 T |
| WpGMR | 489,835.60 | 574,752.59 | 534,008.40 | 548,879.65 | 615,585.92 | |
| WpGMR% | 42.9% | 42.8% | 40.3% | 40.3% | 40.2% | |
| LyGMR | 489,835.60 | 574,058.42 | 534,008.23 | 547,264.82 | 615,585.78 | |
| LyGMR% | 42.9% | 42.7% | 40.3% | 40.1% | 40.2% | |
| WpGMRvar | Ly% | 0.0% | 0.1% | 0.0 % | 0.3% | 0.0% |
| Wp NetGMR | 525,999.44 | 615,954.22 | 574,488.92 | 591,846.20 | 662,802.19 | |
| Wp NetGMR | % | 46.1% | 45.9% | 43.4% | 43.4% | 43.3% |
| LyNetGMR | 524,679.70 | 613,900.84 | 573,789.75 | 587,125.54 | 659,778.70 | |
| Ly NetGMR | % | 46.0% | 45.7% | 43.3% | 43.1% | 43.1% |
| Wp NetGMRv | ar Ly% | 0.3% | 0.3% | 0.1% | 0.8% | 05% |
| Wp Net Sales | R | 1,141,495.25 | 1,342,876.50 | 1,324,875.70 | 1,363,345.20 | 1,529,939.46 |
| LyNetSales | R | 1,141,495.25 | 1,342,876.50 | 1,324,875.70 | 1,363,345.20 | 1,529,939.46 |
| W/F - Gr | oss Margin | |||||
|---|---|---|---|---|---|---|
| v 6 | Location 2 Product & | @ | ||||
| (0D | Measure(D | efault) | + # | S [«< Brick &Mortar | —— ©El < 500Women’sCasuals | |
| Measure | Cal | endar | 9/2/2023 tT | 9/9/2025 tT | 9/16/2023 9/23/2023 tT i | 9/30/2023 tT |
| WpW/FGM | R | 0.00 | 0.00 | 0.00 0.00 | 0.00 | |
| Wp W/FGM | R% | 0.0% | 0.0% | 0.0% 0.0% | 0.0% | |
| LyW/FGMR | 0.00 | 0.00 | 0.00 0.00 | 0.00 | ||
| LyW/FGMR | % | 0.0% | 0.0% | 0.0% 0.0% | 0.0% | |
| WpW/FGM | R varLy% | 0.0% | 0.0% | 0.0% 0.0% | 0.0% | |
| Wp W/F Net | SalesR | 862,018.63 | 936,086.28 | 818,375.23 1,004,619.01 | 1,278,934.95 | |
| LyW/F Net S | alesR | 862,018.63 | 936,086.28 | 818,375.23 1,004,619.01 | 1,278,934.95 | |
| Wp W/F Mar | kdown R | 0.00 | 0.00 | 0.00 0.00 | 0.00 | |
| LyW/F Mark | down R | 0.00 | 0.00 | 0.00 0.00 | 0.00 | |
| MerchTarget | Notes |
| Local -GrossMargin | lm 2 ZH xX | ||
|---|---|---|---|
| vy £€ | Calendar & ZG | Location | |
| [1 [Measue(Oetaut) ~ A] ”~ [<auilecat | onl | ||
| Calendar 6/10/2023 6/17/2023 tT tT Measure | 6 Tt | /24/2023 7/1/ tT | 2023 7, tT |
| WpGMLR® 0.00 0.00 | 0.00 | 0.00 | 0.00 |
| WpGMLR% 0.0% 0.0% | 0.0% | 0.0% | |
| LyGMLR 0.00 0.00 | 0.00 | 0.00 | |
| WpGMLRvarLy% 0.0% 0.0% | 0.0% | 0.0% | |
| WpNetGMLR 0.00 0.00 | 0.00 | 0.00 | |
| WpNetGMLR% 0.0% 0.0% | 0.0% | 0.0% | |
| LyNetGMLR 0.00 0.00 | 0.00 | 0.00 | |
| WpNetGMLRvarLy% 0.0% 0.0% | 0.0% | 0.0% |
| ~ ReviewTargets | ||||||
|---|---|---|---|---|---|---|
| 6 | Calendar Fy | Locat | ion & GZ | |||
| o | Measure(unsaved) +¥ | #@ | < | Brick& Mortar © | > | |
| Calendar | 1/7/2023 | 1/14/2023 | 1/21/2023 | 1/28/2023 | 2/4/2023 | 2/11/2023 |
| Measure | ||||||
| Wp Sales R | 193,012.28 | 173,547.46 | 232,561.89 | 251,457.36 | 267,665.01 | 222,920.14 |
| LySalesR | 175,465.71 | 157,770.42 | 211,419.90 | 228,597.60 | 243,331.83 | 202,654.67 |
| Wp Sales R varLy% | 10.0% | 10.0 % | 10.0 % | 10.0 % | 10.0% | 10.0% |
| Wp Sales R var Fest% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | -744% |
| Wp NetSales R | 172,351.49 | 102,424.89 | 137,571.56 | 149,059.53 | 157,885.42 | 132,493.22 |
| Ly Net Sales R | 156,683.17 | 93,113.54 | 125,065.05 | 135,508.66 | 143,532.20 | 120,448.38 |
| WpNetSalesR var Ly% | 10.0% | 10.0% | 10.0% | 10.0% | 10.0% | 10.0% |
| WpMarkdown POSR | 83,173.53 | 69,309.90 | 65,857.55 | 74,580.55 | 76,549.00 | 0.00 |
| Wp Markdown POSR% | 48.3% | 67.7% | 47.9% | 50.0% | 48.5% | 0.0% |
| Wp Markdown Perm R% | 0.2% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% |
| Ly Markdown Perm R | 18,876.16 | 15,451.95 | 20,726.15 | 22,678.05 | 23,888.31 | 14,235.53 |
| LyMarkdownPermR% | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% | 0.1% |
Review and Re-Project Sub-Step
Use the Review and Re-project sub-step to compare and rework your Wp targets with the current plan, the original plan, and last year’s actuals.
Review Targets View
Use the following measure profiles in this view to review and re-project as desired:
- Default
Use this profile to see Wp and Ly values.
- Tgt with Cp
Use this profile to see Wp and Cp values.
- Tgt with Op
Use this profile to see Wp and Op values.
Publish Targets Sub-Step
Perform this sub-step when you are ready to publish the in-season adjusted targets you created. Publishing a target copies your Wp measure information to the Tgt measures and then it commits those target measures to the database so that Planners can retrieve those targets.
Publish View
To publish the targets, complete the following steps:
1. Place a check mark in the Wp Publish Targets measure to select the halves the that you want to publish.
2. If necessary, enter relevant information in the Wp Publish Notes measure. This is optional.
3. Repeat Steps 1 and 2 for other locations and products if necessary.
4. Click Publish Targets . This button is located in the bottom right corner.
5. A success message is displayed. Click Dismiss to close it.
The view refreshes and clears the data in Wp Publish Targets and Wp Publish Notes measures. It populates the data for Tgt Publish Info measure as name:date:notes. The Tgt measures in this view are populated.
Published Targets View
The targets in this view initially have existing targeted values. After the targets are published in this step, these measures are populated with the updated target information.
Review Plan Sub-Step
Similar to pre-season, the Review Plan sub-step is performed to review the Planner’s inseason plan which is awaiting approval.
| ~ ReviewPlan | |||||
|---|---|---|---|---|---|
| a | Calendar # GZ | Location | |||
| Oo | Measure(1.Default) | : [< | Brick&Mortar > | ||
| Calendar | 8/13/2022 | 8/20/2022 8/27 | /2022 | 9/3/2022 | 9/10/2022 |
| Measure | |||||
| Tgt Sales R | 0.00 | 0.00 | 0.00 | 0.00 | |
| Wa Sales R | 0.00 | 0.00 | 0.00 | 0.00 | |
| Tgt Sales RvarWa% | 0.0% | 0.0% | 0.0% | 0.0% | |
| Tgt Net Sales R | 0.00 | 0.00 | 0.00 | 0.00 | |
| Wa NetSales R | 0.00 | 0.00 | 0.00 | 0.00 | |
| Tgt Net Sales RvarWa% | 00% | 0.0% | 0.0% | 0.0% | |
| Tgt Markdown POSR | 0.00 | 0.00 | 0.00 | 0.00 | |
| Tgt Markdown POS R% | 0.0% | 0.0% | 0.0% | 0.0% | |
| WaMarkdownPOSR | 0.00 | 0.00 | 0.00 | 0.00 |
| OpentoBuy | |||||||
|---|---|---|---|---|---|---|---|
| B | Calendar gy a | Locat | ion | & | |||
| oO | Measure(unsaved) + | ~ [< | Brick &Mortar © | > | < 500Wom | ||
| Calendar | 1/7/2023 | 1/14/2023 | 1/2 | 1/2023 | 1/28/2023 | 2/4/2023 | 2/11/2023 |
| Measure | |||||||
| WpBOPR | 12,431,354.78 | 11,939,048.97 | 11,614,518.77 | 11,231,774.40 | 13,022,797.90 | 12,572,865.23 | |
| Wp Net Sales R | 172,351.49 | 102,424.89 | 137,571.56 | 149,059.53 | 157,885.42 | 132,493.22 | |
| WpMarkdown POSR | 83,173.53 | 69,309.90 | 65,857.55 | 74,580.55 | 76,549.00 | 0.00 | |
| WpMarkdown POSR% | 48.3% | 67.7% | 47.9% | 50.0% | 48.5% | 0.0% | |
| WpMarkdown Perm R | 21,023.79 | 17,119.08 | 23,136.66 | 24,949.06 | 26,772.69 | 14,265.31 | |
| WpMarkdown Perm R% | 0.2% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% | |
| Wp Receipts R | 0.00 | 0.00 | 0.00 | 1,097,949.73 | 0.00 | 0.00 | |
| Wp Receipts MU% | 0.0% | 0.0% | 0.0% | 50.0% | 0.0% | 0.0% | |
| CpReceipts R | 0.00 | 0.00 | 0.00 | 1,118,219.18 | 0.00 | 0.00 | |
| CpReceiptsMU% | 0.0% | 0.0% | 0.0% | 50.0% | 0.0% | 0.0% |
- Default
This measure profile displays Reg+Promo, Clearance, and Net Sales and Markdowns and the corresponding inventory.
- Direct
Key metrics for e-commerce are displayed including traffic, transactions, and returns.
- Local Currency
If the Local Currency option is enabled, key metrics are viewed in local currency.
In this guide
- Guide: Merchandise Financial Planning Retail User’s Guide
- Previous: 7 Load Validate Task
- Next: 9 Create Merch Plan Task