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Beyond Product Planning: Assortment Planning 
(Part II of Series) (cont.)

 Automation Facilitates a Comprehensive Plan

To build a comprehensive assortment plan, details in a number of areas come into play, and the planner could not realistically manage that level of detail without an automated system.  The automated system makes it possible to address dozens of parameters in these four key areas:

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 Product Attributes. – This set of parameters helps the retailer relate to the customer, by factoring into the plan brand, vendor, fabric, silhouette, pricepoint, and theme.  These parameters enable the planner to tailor the assortment and build the proper relationships among the various components.  For example, the planner can determine the right percentage of brands, the right quantity of each brand, and similar calculations. 

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Store Structure/Store Characteristics - These parameters enable the planner to categorize stores into groups, a critical step before one can define product assortments.  Grouping by the size, volume, and type of store, the climate, and the customer type helps the planner meet each store’s particular demands.  The store characteristics are pivotal in micro marketing and they also support distribution to the stores. 

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Time Dimension/Product Seasonality - The time dimension for an assortment plan considers the usual week, month, and season definition, along with product transition and crossover between seasons.  But assortment planning also needs smaller time periods or mini-seasons such as back-to-school, holiday, and summer clearance.  These overlapping time periods consider events and/or time periods that help define the product characteristics needed to address customer demand.

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Space Dimensions/Space Utilization - As the assortment plan develops, it allocates available space based on the product definition.  Factors such as the number of styles and quantities of each style will affect space utilization. Product dimensions, product density, product display requirements, store structure, store layout, store “look,” and visual merchandising all affect the space plan and, consequently, the assortment plan as well. 

Managing the Volume of Detail

To handle all of the calculations in these key areas, assortment planning systems that go beyond simple spreadsheets are becoming available for retailers.  These systems apply the automation necessary handle the voluminous and tedious detail necessary in today’s assortment planning process.  Because these systems can churn through the calculations in all of these areas, retailers are better able to develop a good assortment plan.

This article was first published for Retek Inc.

        
© Retail Systems & Services (2008)