Why OTB is Effective Retail Planning?
By Mercy Gracy Antony · PUBLISHED February 12, 2021
Retail operations managers can’t run their businesses on jet fuel and flying by the seat of their pants. To be profitable, you’ve got to be effective at the nuts and bolts of the operation, and that requires planning. Open-to-buy (OTB) is retail’s model for effective long-term planning with the right OTB software. Here are eight reasons why it’s so effective:
1.OTB leverages historical patterns to determine dollar distribution – By looking at the long-term trends of the past, you can better and more accurately predict how each dollar of expense is allocated toward achieve bottom-line profits.
2.It compares sales and inventory data with granular views – OTB allows retail managers to look at sales and inventory data over time using charts and drill-down graphics at various levels within the organization.
3.OTB uses stock-to-sales ratios – By understanding how much of your existing stock you can sell during a given period of time, you can better forecast when and how much inventory to purchase for the next period.
4.It’s flexible and accurate – OTB allows retail managers the flexibility they need to forecast the measurements that are important to their specific situation.
5.It can manage multiple season forecasting simultaneously – Just about every retail sector requires some kind of seasonal planning and forecasting. OTB allows retail operations managers to plan for multiple seasons at the same time.
6.OTB makes allocation simpler – Whether you use a top-down or a bottom-up allocation model, OTB makes it simple.
7.Retailers can track the most important KPIs – You get to define your own KPIs. With OTB planning, you can define your own performance indicators.
8.OTB increases profits and revenues – When you have the right planning software for your retail operation, you’ll be more profitable because you can count on future revenues more accurately.
ChainDrive OTB software makes OTB planning simple, easy, and flexible for retailers of all sizes and all types. ChainDrive is a fully-integrated solution allows vendors to offer custom-tailored retail management strategies in a unified environment. If you still have more questions or want to find out more about how ChainDrive’s retail management advisers can help you step-up your heavy-duty retail operations, contact our retail management software experts or log on https://chaindrive.com/free-live-demo/ to book a live demo