merchandise planning & execution suite key...
TRANSCRIPT
Fact Sheet
The Purchase Planning & Allocation module for Microsoft Dynamics AX provides the core functionality to execute the planning, purchasing and allocation phase of your global merchandise strategy by enabling better management of your demand forecasts and inventory plans.
Available on premise and in the Cloud our solution helps you:
• Managefinancialplansandopen-to-buybudgets
• Optimise your inventory
• Improve accuracy of allocation modelling
• Promote new products in each buying season
• Centrally manage buying and merchandising for multiple channels
• Increase margins
Purchase Planning & Allocation ModuleOptimise your inventory to meet your customers’ expectations at the right time and the right place
Merchandise Planning & Execution Suite
•Store grading
•Buy plan management
•Store modelling
•Pre-orderandPurchaseValidation
•Allocations
•Markdown sales
Key Features
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Purchase Planning & Allocation Module
Store Grading
Thestoregradingfeatureallowsmerchandiseplannerstospecifygradingrulesbasedonuserdefinableattributesandcontribution of sales. Store grading is calculated based on selected attributes and prior sales history to produce a grading schedule across product categories. Store grading is used to distribute product to stores in the buy plan process.
HigH-LeveL SeaSon PLanning WorkfLoW The Purchase Planning & Allocation Module addresses the yellow boxes in the flow.
Open to Buy Budget
Store Grading
Buy Plan
Store Allocation Plans & Pre-Packs
Purchase Orders, Transfer Orders, &
Store Replenishment Rules
Stores Receive Options & VariantsSALES!!Forecasting &
Replenishment
Supplier Pre-OrdersModelling
Store GradingInputparameters(Figure1)includespecificstoreattributesandcategoriesthatareusedtocalculate store grades (Figure 2).
Automated Store Grading Calculation Automatically calculate store grading based on historical data by store and product category. The calculated store grade can be changed manually if required.
Like Store Association Associate new stores or partial stores with no or few transactions to existing stores for the purpose of grading.
Modifiers Create up to three store grading modifiers – such as climate, growth, traffic –providing filtering capabilities when working with grading records.
Store Grading Import Populate store grading import journal and validate against existing data elements (e.g. product category, allocation season, etc.).
KEY FEATURES
Figure 1
Figure 2
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Buy Plan Management
Buyplanscanbecreatedbyproductcategoryandarevalidateddirectlyfromanopen-to-buybudget.Whenplanning,the solution allows for the selection of multiple products and variants at the same time. Once your plan is locked in, new products and variants will be created automatically from the buy plan.
Open-to-Buy Budget Import Define attributes to be included in the analysis using date, product attribute, weeks of sale and markdown level.
Dynamic Entry Specify multiple periods of history to select appropriate transactions.
Historical Buy Plans View calculated size distribution based on selected analysis criteria.
Automated Product (Option) Creation Automatically create new products and variants from the buy plan. Created products are released to appropriate legal entities and added to store assortments. Automated barcode creation is also supported.
Buy Plan Validation Validate the total open-to-buy budget against a buy plan by product category.
Multiple Company Support Define buy plans across multiple legal entities.
Markdown Support Factor markdown prices into store grading calculations.
Out-of-Stock Support Estimate forfeited sales caused by out-of-stock—factoring lost sales into the store grading calculations.
KEY FEATURES
Buy Plan WorksheetDetailed view into the purchasing budget with the ability to calculate multiple cost factors to estimate landed cost.
Thebuyplanrecordsleveragethepreviouslydeliveredgradingrecordstodefinetheproposedstoreselection.Thecountofstoresbasedonthegradingselectionisthenusedincombinationwithuser-definedfieldssuchas‘rateofsale’,’lifecycle’and‘plannedsell-through,’toderivetheestimatedsalesunit.
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TheAllocationplanviewprovidesvisibilityintothedistributionofproductsacrosstheselectedgradingandmodifiercombinations.Fromthisviewproductscanbeselectedorde-selectedtobeincludedintheparticularstoregrade.
Onceabuyplaniscompleted,thereisanoptiontofirmthepurchaseordersorcreate‘Pre-purchaseorders’.ThePre-purchaseorderisusedasanindicativedocumentsenttothevendorpriortoanyallocationwithoutledgerorinventoryimplication.ThePre-purchaseorderretainsthelookandfeelofastandardMicrosoftDynamicsAX2012purchaseorderandsupportstheprocesswherepurchasesarenegotiatedwiththevendor(oftenrequiringsignificantchanges and updates) prior to actual purchase orders in the relevant legal entities being created.
Pre-Purchase OrderEnables retailers to provide vendors with planned order commitments and negotiate higher rebates up front.
Allocation PlanProvidesvisibilityintothedistributionofproductsacrossselectedgradingandmodifiercombinations.Productscanbeselectedorde-selectedforinclusionintheparticularstoregrade.
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Store Modelling
Store modelling allows users to perform analysis on the retail transactions to return the size distribution per store for specifiedproductsoveraspecifiedperiod.
Aformcanbelaunchedfromthebuyplanrecordorrecords.Validation-toensuretheselectedbuyplanlinesusethesamesizegroup-isincludedalongwiththeabilitytospecifytwodaterangeswhichallowsselectionofsimilarperiodsinmultipleyears.Theproductselectioncanalsobedefinedbyretailproductcategoryandaselectedattributevalueon the product.
The output of the calculation has been added to provide visibility as this calculation will be used to construct the initial purchase order quantities at size variant level.
Todefinethetransactionforanalysis,usershavetheabilitytospecifytheweeksofsaleandthemarkdownlevelfortheproduct.Theweeksofsaleconceptallowstheusertospecifyanumberofweeksbasedonthefirstrecordedsalewithin the indicated period. The use markdown functionality supports the business case where only full price sales and salesatfirstmarkdownshouldbeconsidered.
Assortment Analysis Define attributes to be included in the analysis using date, product attribute, weeks of sale and markdown level.
Multiple History Periods Specify multiple periods of history to define appropriate transactions.
Size Distribution Calculation View calculated size distribution based on selected analysis criteria.
KEY FEATURES
Store ModellingHistorical periods such as weeks of sale (top section) combined with product attributes and categories (bottom section) are leveraged to calculate store modelling.
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Pre-OrderandPurchaseValidation
Pre-purchaseordersarecreatedfromselectbuyplanlinesandsenttothevendorpriortoanyallocationbeingperformedwithoutanyledgerorinventoryimplications.ThePre-purchaseorderretainsthelookandfeelofastandardMicrosoftDynamicsAX2012purchaseorderandsupportstheprocesswherepurchasesarenegotiatedwiththevendor,oftenrequiringsignificantchangesandupdatespriortoactualpurchaseordersintherelevantlegalentitiesbeingcreated.ThePre-purchaseorderrecordsareusedtovalidatetheactualpurchaseorderaswellasanychangesto the buy plan that may be required as part of the modelling calculations.
Product Bar Codes Auto-check for product bar code value and add to pre-purchase order to facilitate printing of labels and product tags.
Validation Workflow Allocation confirmation workflow across multiple buy plans triggering the purchase order transaction.
KEY FEATURES
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Buy-Plan AllocationView results of the store grading and the allocation model to develop thefinalstoreallocation.
Store Size Modelling Model size distributions for stores by product category from historical transactions.
Pre-Packs Create pre-allocates size distribution packages by product in order to reduce the picking effort by freight forwarders.
Markdown Support Taking into account sales at markdown prices for allocation and replenishment calculations.
Purchase Order Creation Create confirmed purchase orders based on store allocations
KEY FEATURES
Allocations
Anassortmentplanisusedtodefinetheoptimalassortmentofoptionsandoptionvariantsforagivenstoreorgroupof stores helping to determine what variants are most applicable. The assortment plan is key to identifying the correct levelofthedistributionofstyles/optionsthatallowthemaximumsellthroughattheidentifiedrangeofmarkdowns.
Allocations are performed across the buy plan products across selected retail stores or store grades. It is possible to definethesplitofproductstobeallocatedtothestoresanddistributioncentreforreplenishment.Utilisingtheproductpre-packstheallocationroutinewillisolatethemostappropriateproductpackageforeachstoreandallocateaccordingly.Theallocationrecordsareultimatelyusedinthecreationoftheactual,legalentityspecific,purchaseorders.
Store modelling results can be manipulated within the allocation form to facilitate tuning of the allocation. As such, validationhasbeendevelopedtoensuretheallocationdoesnotexceedthebuyplanquantitiesoranyexistingPre-purchase order.
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Markdown Tracking Table View history of markdowns by product.
Stock on Hand (SOH) Capture stock on hand (SOH) at each markdown date in order to calculate net change in value.
KEY FEATURES
Markdown Sales
A markdown transaction is a sale below the initial price and a style may go through multiple markdowns until inventory is exhausted. These statistics are used in the grading and allocation routines to avoid a situation where two stores have a like or skewed grade due to one store having a higher sell through rate caused by a larger percentage of markdown sales compared to a store with a lower sell through rate but a larger percentage of full price sales.
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