Open to Buy Planning, Managing and Inventory Optimization

Description

The Open-to-Buy (OTB) Planning, Managing and Inventory Optimization module provides an introduction to OTB and WSSI planning principles, explaining how they support effective stock and financial management in retail. It covers the end-to-end planning process, starting with pre-season forecasting and target setting, through to in-season OTB management, including replanning, forecast adjustments, and optimization of weeks of cover. It also explores omni-channel considerations, including the impact of customer returns, as well as how markdowns influence OTB performance, stock valuation, and overall profitability.

Who is it Suitable For?

This program is designed for:

• Buying Department Managers
• Senior and Junior Buyers
• Merchandise Managers
• Merchandisers
• IT Department personnel developing related application software
• Consultants and systems integrator personnel working on Buying Office projects 

Class Objectives

By the end of this program, learners will be able to;

• Explain the two main purposes the OTB/WSSI process serves
• Be able to perform all the calculation steps in the OTB process
• Be able to identify overbought and underbought situations
• Develop appropriate responses to problem situations in OTB management

Detailed Content:

Introduction to OTB and WSSI

• What is Open to Buy (OTB)?
• Where does OTB sit within the business?
• How is OTB measured?
• What is the purpose of OTB?
• Frequency and WSSI

Pre-Season Planning

• The OTB basic framework
• How to determine required weeks of sales cover
• Arithmetic to start the plan
• Converting OTB from retail to cost
• OTB and omni-channel considerations
• Return rates in OTB planning
• Placing purchase orders
• Reacting to variances against plan
• Creating department OTB plans from sub-department plans
• Promotional and clearance markdowns
• Retail vs. cost accounting

In-Season OTB Management

• Balancing markdown and carryover decisions
• Updating the OTB plan as the seasons progress
• Assessing OTB outcomes
• Managing delayed or cancelled receipts

Manipulating OTB

• Changing weeks cover
• Promotional and clearance markdowns
• Impact of stock ownership on OTB
• Factors which complicate OTB

Mastery test

Learners completing the mastery test and obtaining a 70% pass mark will also receive a mastery certificate and digital badge upon completion.

Hours of Study

On average learners take 2.5 hours to study this course.

Resources Included

Guide on Navigating Martec E-learning Courses
CPE Credits for Open to Buy Planning, Management and Inventory Optimization
Open to Buy Planning, Management and Inventory Optimization Module Summary
Open to Buy Workbook Template
WIKI links Open to Buy Planning, Management and Inventory Optimization