Optimizing your stock is one of the most challenging aspects of a business. Knowing which brand to keep and how to combine products, by all means, is not an easy task. However, retail planning software technology will help you to achieve your prospects, increase your profits and transform the way you do your business. Today, retail planning software has become a transformative technology that helps you review and analyze assortments for your business based on an informed and intelligent business model.
Retail planning software technology has revolutionized retail management over recent years by empowering retailers to take advantage of big data. More than 65% of top retailers are currently using some form of retail planning software technology to optimize their stock, helping them grow their business in both a physical and digital capacity.
1. Helps Create Optimal Product Mixes
The best retail planning software tools can help retailers create optimal product mixes that account for inventory levels, predicted sales, cost of goods sold (COGS), profit margins, and other factors. Having the right combination of all the products customers need in one place makes it easy to ensure they are carrying everything they need at a go. Hence, retail planning software will help you meet forecast demand, no matter how many SKUs you deal with in your store.
The software captures customer intent and purchases history from online and brick-and-mortar outlets. Therefore, the planning software can help companies optimize their in-store displays accordingly. More efficient sorting algorithms mean less manual work for employees who sort merchandise before displaying it.
Retail planning software helps business owners create optimal product mixes by location. Hence, businesses can use their limited resources efficiently without sacrificing profitability. It also makes it easier for them to expand into new markets with less risk. The reason is that they can more accurately determine what products will be successful in these recent locations before committing any significant capital expenditures or person-hours toward building out a store’s inventory. You can also use demand planning software to help you reduce the time you use in forecasting and planning.
2. Helps Maximize Profitability Across Different Channel Needs
A retail planning solution offers deep analytical insights into demand patterns, forecast accuracy, and channel cannibalization issues, ensuring maximum profitability whether you operate online or offline. These retail planning software applications come in handy, whether you need detailed merchandising analysis, executive dashboards, or customized retail analysis solutions to address specific requirements. Additionally, retail planning software provides better visibility and control across your enterprise. Consequently, you can make decisions faster, which improves your enterprise’s agility and flexibility and drives more profitable growth. To reduce stockouts and improve revenue planning, you can employ demand planning software.
3. Collaboration Of Suppliers And Suppliers
One of the crucial factors why retailers fail to communicate efficiently with their suppliers is that they lack efficient means to communicate electronically and share common financial data securely without disrupting normal business processes such as invoicing practices. Retail planning software applications enable communication between you and your suppliers and eliminate the human error factor thanks to its automated retail execution capability, allowing a smooth ordering and requisitioning process.
4. Tracking Inventory Throughout Supply Chain To Maintain Optimal Levels
Inventory visibility is another primary concern when it comes to retail planning. With retail planning software solutions, you can view all available inventories across warehouses and multiple locations in real-time to know where the products are at any given moment during the retail execution process.
Also, with dynamic demand planning software with forecasting capabilities, you don’t have to worry about procuring wrong products or incurring extra stock holding expenses due to overbuying. The technology allows you to see what products are selling, which can help with assortment planning. Replenishment options let you place orders automatically when a product is low on stock.
The technology has the capabilities to recommend optimal assortment combinations based on market trends. So if sports gear is hot right now, it might suggest other items that go well with it: equipment bags, sneakers, or foam rollers, for example. The localized optimal product assortment is crucial in the modern business environment.
5. Driving Better Decision Making
Retail planning software technology enables businesses to have a single source of information created and stored in a centralized database. Consequently, it allows employees to make better, more informed decisions as they manage all aspects of your business—from supply chain management to inventory tracking to e-commerce. The result? More competitive pricing for customers and higher profits for your business. Demand planning software will further enhance decision-making by providing an accurate statistical forecast of new products.
6. Improving Customer Loyalty Scores
To sustain growth, increase market penetration, and minimize customer churn, it is important to customize each experience for every shopper across every touchpoint, digital or physical. Retail planning software applications can effectively personalize your interactions with shoppers and enhance customer loyalty. It allows you to offer relevant, real-time personalized promotions and content for better brand engagement and repeat business.
Retail planning software is an invaluable tool for small businesses. These applications help you optimize your inventory, save money, and maximize profits. They allow you to understand trends in your business and market better and plan for growth. Furthermore, retail planning applications make expanding your enterprise across multiple locations more accessible. Whatever growth stage your business is in, a comprehensive retail planning application can give you valuable insights that will help you stay on track. You can contact o9Solutions for all your assortment planning needs and be ahead of other businesses.