[1 ] Oracle® Retail Assortment Planning

[1] Oracle® Retail Assortment PlanningUser Guide for the RPAS Fusion Client

Release 14.1.1

E60636-01

May 2015

Oracle Retail Assortment Planning User Guide for the RPAS Fusion Client, Release 14.1.1

E60636-01

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

Primary Author: Bernadette Goodman

Contributing Author: Matt Jones, Lauren Rich, Si Meng

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Licensing Note: This media pack includes a Restricted Use license for Oracle Retail Predictive Application Server (RPAS) - Enterprise Engine to support Oracle® Retail Assortment Planning only.

Value-Added Reseller (VAR) Language

Oracle Retail VAR Applications

The following restrictions and provisions only apply to the programs referred to in this section and licensed to you. You acknowledge that the programs may contain third party software (VAR applications) licensed to Oracle. Depending upon your product and its version number, the VAR applications may include:

(i) the MicroStrategy Components developed and licensed by MicroStrategy Services Corporation (MicroStrategy) of McLean, Virginia to Oracle and imbedded in the MicroStrategy for Oracle Retail Data Warehouse and MicroStrategy for Oracle Retail Planning & Optimization applications.

(ii) the Wavelink component developed and licensed by Wavelink Corporation (Wavelink) of Kirkland, Washington, to Oracle and imbedded in Oracle Retail Mobile Store Inventory Management.

(iii) the software component known as Access Via™ licensed by Access Via of Seattle, Washington, and imbedded in Oracle Retail Signs and Oracle Retail Labels and Tags.

(iv) the software component known as Adobe Flex™ licensed by Adobe Systems Incorporated of San Jose, California, and imbedded in Oracle Retail Promotion Planning & Optimization application.

You acknowledge and confirm that Oracle grants you use of only the object code of the VAR Applications. Oracle will not deliver source code to the VAR Applications to you. Notwithstanding any other term or condition of the agreement and this ordering document, you shall not cause or permit alteration of any VAR Applications. For purposes of this section, "alteration" refers to all alterations, translations, upgrades, enhancements, customizations or modifications of all or any portion of the VAR Applications including all reconfigurations, reassembly or reverse assembly, re-engineering or reverse engineering and recompilations or reverse compilations of the VAR Applications or any derivatives of the VAR Applications. You acknowledge that it shall be a breach of the agreement to utilize the relationship, and/or confidential information of the VAR Applications for purposes of competitive discovery.

The VAR Applications contain trade secrets of Oracle and Oracle's licensors and Customer shall not attempt, cause, or permit the alteration, decompilation, reverse engineering, disassembly or other reduction of the VAR Applications to a human perceivable form. Oracle reserves the right to replace, with functional equivalent software, any of the VAR Applications in future releases of the applicable program.

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Contents

List of TablesList of Figures

Send Us Your Comments ....................................................................................................................... xix

Preface ............................................................................................................................................................... xxi

Audience..................................................................................................................................................... xxiDocumentation Accessibility ................................................................................................................... xxiRelated Documents ................................................................................................................................... xxiCustomer Support ..................................................................................................................................... xxiReview Patch Documentation ................................................................................................................ xxiiImproved Process for Oracle Retail Documentation Corrections ..................................................... xxiiOracle Retail Documentation on the Oracle Technology Network .................................................. xxiiConventions .............................................................................................................................................. xxii

1 Introduction

What is Assortment Planning? .............................................................................................................. 1-1What is a Point of Commerce? ............................................................................................................... 1-3Assortment Planning Business Process ............................................................................................... 1-4

Plan Setup............................................................................................................................................ 1-5Selling Curve Maintenance............................................................................................................... 1-7Cluster Maintenance.......................................................................................................................... 1-8Create the Shopping List................................................................................................................... 1-9Build the Wedge .............................................................................................................................. 1-10Buy Planning.................................................................................................................................... 1-11Size/Pack Allocation ...................................................................................................................... 1-12In-Season/Historical Analysis ...................................................................................................... 1-12

Slow Item Build ..................................................................................................................................... 1-13Assortment Planning and Product Lifecycle Management........................................................... 1-13Visual Planning ..................................................................................................................................... 1-14Custom Menu Options ......................................................................................................................... 1-17Getting Started ....................................................................................................................................... 1-17

2 AP Maintenance

Assortment Setup Task ........................................................................................................................... 2-1Create the Assortment Setup Workbook ........................................................................................ 2-2Step 1 - Set PoC Attributes................................................................................................................ 2-2

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Define PoC Attribute Values View........................................................................................... 2-3Assign PoC Attributes View...................................................................................................... 2-3View PoC Open & Close Dates View....................................................................................... 2-3Define Store Space View ............................................................................................................ 2-4

Step 2 - Set Strategy Weights ............................................................................................................ 2-5Define Strategy Weights View .................................................................................................. 2-5

Step 3 - Set Product Attributes ......................................................................................................... 2-6Set Picklist Options Tab ............................................................................................................. 2-7

Define Product Attributes Values View ........................................................................... 2-7Activate Attributes Tab .............................................................................................................. 2-8

Determine Attribute Eligibility View................................................................................ 2-8Assign Color Runs Tab............................................................................................................... 2-9

Define Colors View.............................................................................................................. 2-9Define Basic Color Runs View ........................................................................................ 2-10Define Seasonal/Trend Color Runs View..................................................................... 2-11

Set Price Tiers Tab.................................................................................................................... 2-11Define Price Tiers View.................................................................................................... 2-11

Step 4 - Customer Definition ......................................................................................................... 2-12Define Customer Attributes View......................................................................................... 2-12

Step 5 - Set Fixture Capacity .......................................................................................................... 2-12Define Space Capacity & Constraints View......................................................................... 2-12

Step 6 - Adjust Inclusion Label...................................................................................................... 2-13Define Inclusion Status View ................................................................................................. 2-13

Step 7 - Adjust Decision Label....................................................................................................... 2-14Define Decision Values View ................................................................................................. 2-14

Step 8 - History Mapping............................................................................................................... 2-15History Mapping View ........................................................................................................... 2-15

Define Size Profiles & Pack Task ...................................................................................................... 2-16Define Size Profiles & Pack Workbook........................................................................................ 2-16Step 1 - Define Size Profiles ........................................................................................................... 2-17

Define Size Profiles View........................................................................................................ 2-17Step 2 - Define Prepacks................................................................................................................. 2-18

Define Prepacks View ............................................................................................................. 2-18Create PoC Targets Task ...................................................................................................................... 2-19

Build the Create PoC Targets Workbook..................................................................................... 2-19Step 1 - Review MFP Targets......................................................................................................... 2-20

Review MFP Targets View ..................................................................................................... 2-21Step 2 - Set PoC Targets.................................................................................................................. 2-21

Custom Menu Option.............................................................................................................. 2-21Set PoC Targets View .............................................................................................................. 2-22

Step 3 - Review PoC Targets.......................................................................................................... 2-23Review PoC Targets View ...................................................................................................... 2-23

Look Maintenance Task ....................................................................................................................... 2-23Create the Look Maintenance Workbook.................................................................................... 2-23Custom Menu Option..................................................................................................................... 2-24Step 1 - Create Look(s).................................................................................................................... 2-25

Define Look(s) View ................................................................................................................ 2-26

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Look Calendar View................................................................................................................ 2-26Step 2 - Assign Subclass(es) ........................................................................................................... 2-27

Custom Menu Option.............................................................................................................. 2-27Assign Subclass(es) View........................................................................................................ 2-27Look/Subclass Calendar View .............................................................................................. 2-28

Step 3 - Assign Strategies ............................................................................................................... 2-29Custom Menu Option.............................................................................................................. 2-29Assign Strategies View............................................................................................................ 2-29

Step 4 - Seed/Set Look Goals ........................................................................................................ 2-29Custom Menu Options............................................................................................................ 2-30

Seed Sister Look ................................................................................................................ 2-30Commit Look Maintenance............................................................................................. 2-30

Seed from Sister Look View ................................................................................................... 2-31Determine Assortment Mix View.......................................................................................... 2-31Determine Color Mix View .................................................................................................... 2-32

3 Lifecycle Curves Task

Lifecycle Curves Task.............................................................................................................................. 3-1Create the Lifecycle Curves Workbook ............................................................................................... 3-1Step 1 - Set Curve Profiles ...................................................................................................................... 3-2

Define Curve Labels View ................................................................................................................ 3-2Define Curve Profiles View .............................................................................................................. 3-2

4 Clustering

Clustering Task......................................................................................................................................... 4-1Types of Clustering............................................................................................................................ 4-1Create the Clustering Workbook ..................................................................................................... 4-2Custom Menu Option........................................................................................................................ 4-5Step 1 - Set Performance Goals......................................................................................................... 4-6

Custom Menu Options............................................................................................................... 4-6Review/Set Weights View......................................................................................................... 4-6Select Cluster Attributes View .................................................................................................. 4-7

Step 2 - Define Clusters ..................................................................................................................... 4-7Custom Menu Option................................................................................................................. 4-8Define Performance Clusters View .......................................................................................... 4-8Define Space Clusters View....................................................................................................... 4-8PoC Analysis View ..................................................................................................................... 4-9

Step 3 - Review Clusters................................................................................................................. 4-10Cluster Results View ............................................................................................................... 4-10

Step 4 - Approve.............................................................................................................................. 4-11Custom Menu Option.............................................................................................................. 4-11

Approve Clusters.............................................................................................................. 4-11Approve Clusters View........................................................................................................... 4-13

5 Create Shopping List

Create Shopping List Task ..................................................................................................................... 5-1

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Process Overview............................................................................................................................... 5-1Build the Create Shopping List Workbook .................................................................................... 5-3Step 1 - Review/History Plans......................................................................................................... 5-4

History Tab .................................................................................................................................. 5-4Review History by Attribute View ................................................................................... 5-5Review History by Customer View .................................................................................. 5-5

PoC Tab ........................................................................................................................................ 5-6Review PoC Plan View ....................................................................................................... 5-6

Sister Look Tab ............................................................................................................................ 5-6Review Sister Look by Attribute View ............................................................................. 5-6Review Sister Look by Customer View ............................................................................ 5-7

Look Tab....................................................................................................................................... 5-7Review Look View............................................................................................................... 5-8

Step 2 - Set Assortment Size ............................................................................................................. 5-8Custom Menu Option................................................................................................................. 5-9Brick & Mortar Sales Tab ........................................................................................................... 5-9

Determine # of Styles-Colors using Sales View............................................................ 5-10Brick & Mortar Capacity Tab ................................................................................................. 5-10

Review Space Capacity & Constraints View ................................................................ 5-10Assign # of Fixtures View................................................................................................ 5-11Determine # of Styles-Colors using Capacity View..................................................... 5-11

Direct Sales Tab ........................................................................................................................ 5-12Determine # of Styles-Colors using Sales View............................................................ 5-12

Step 3 - Set Shopping List Goals ................................................................................................... 5-13Custom Menu Option.............................................................................................................. 5-13

Seed SL Goals (SL = Shopping List) ............................................................................... 5-13Seed Target Mix View ............................................................................................................. 5-13Target Mix by Attribute View................................................................................................ 5-14

Step 4 - Create Shopping List ........................................................................................................ 5-14Custom Menu Options............................................................................................................ 5-15

Spread Plan........................................................................................................................ 5-16Fill the Shopping List Tab....................................................................................................... 5-16

Fill the Shopping List View............................................................................................. 5-16Style-Color Totals & Financial Budget View ................................................................ 5-17

Define Styles Tab...................................................................................................................... 5-17Define Styles View............................................................................................................ 5-17Product Attributes View.................................................................................................. 5-18

Review the Shopping List Tab ............................................................................................... 5-19Shopping List by Attribute View ................................................................................... 5-19Shopping List by Customer View .................................................................................. 5-20Sister Look Shopping List by Attribute View............................................................... 5-20Sister Look Shopping List by Customer View.............................................................. 5-21


Approve Plan..................................................................................................................... 5-22Approve Shopping List View................................................................................................. 5-22

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6 Build the Wedge

Build the Wedge Task ............................................................................................................................. 6-1What is a Wedge?............................................................................................................................... 6-1Process Overview............................................................................................................................... 6-2Create the Build the Wedge Workbook .......................................................................................... 6-3Step 1 - Review History/Plans......................................................................................................... 6-5

History Tab .................................................................................................................................. 6-5Review History by Attribute View ................................................................................... 6-5Review History by Customer View .................................................................................. 6-6

Plans Tab ...................................................................................................................................... 6-6Review PoC Plan View ....................................................................................................... 6-6Review Shopping List View............................................................................................... 6-7

Sister Look Tab ............................................................................................................................ 6-7Review Sister Look by Attribute View ............................................................................. 6-7Review Sister Look by Customer View ............................................................................ 6-8

Look Tab....................................................................................................................................... 6-8Review Look View............................................................................................................... 6-8

Step 2 - Set Assortment Size ............................................................................................................. 6-9Custom Menu Option.............................................................................................................. 6-10Brick & Mortar Sales Tab ........................................................................................................ 6-10

Determine # of Styles-Colors using Sales View............................................................ 6-11Brick & Mortar Capacity Tab ................................................................................................. 6-11

Review Space Capacity & Constraints View ................................................................ 6-11Assign # of Fixtures View................................................................................................ 6-12Determine # of Styles-Colors using Capacity View..................................................... 6-12

Direct Sales Tab ........................................................................................................................ 6-13Determine # of Styles-Colors using Sales View............................................................ 6-13

Step 3 - Set Wedge Goals................................................................................................................ 6-14Custom Menu Option.............................................................................................................. 6-14

Seed Wedge Goals ............................................................................................................ 6-14Seed Target Mix View ............................................................................................................. 6-15Target Mix by Attribute View................................................................................................ 6-15Target Mix by Color View ...................................................................................................... 6-15

Step 4 - Fill Wedge .......................................................................................................................... 6-16Custom Menu Options............................................................................................................ 6-16

Spread Plan........................................................................................................................ 6-17Populate Wedge ................................................................................................................ 6-17

Fill the Wedge Tab ................................................................................................................... 6-17Fill the Wedge View ......................................................................................................... 6-17Style-Color Totals & Financial Budget View ................................................................ 6-19Tailor the Wedge View .................................................................................................... 6-19

Define Style-Colors Tab .......................................................................................................... 6-20Define Style-Colors View................................................................................................. 6-20Color Attribute View........................................................................................................ 6-20Product Attributes View.................................................................................................. 6-21

Review Wedge Tab .................................................................................................................. 6-22Wedge by Attribute View................................................................................................ 6-22

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Wedge by Color View ...................................................................................................... 6-23Wedge by Customer View............................................................................................... 6-23Sister Look Wedge by Attribute View........................................................................... 6-24Sister Look Wedge by Color View ................................................................................. 6-24Sister Look Wedge by Customer View.......................................................................... 6-24

Step 5 - Time Phased View ............................................................................................................ 6-25Custom Menu ........................................................................................................................... 6-26


Approve Plan..................................................................................................................... 6-27Approve Wedge View............................................................................................................. 6-27

7 Buying Plan

Buying Plan Task ..................................................................................................................................... 7-1Create the Buying Plan Workbook .................................................................................................. 7-1Step 1 - Create Sales Plan .................................................................................................................. 7-3

Custom Menu Options............................................................................................................... 7-3Seed Parameters ................................................................................................................... 7-3Create Sales........................................................................................................................... 7-3

Sales Parameters Tab .................................................................................................................. 7-3Review Look View............................................................................................................... 7-3Review Wedge View ........................................................................................................... 7-4Review Sales Curves View ................................................................................................. 7-4Define Sales Parameters View ........................................................................................... 7-5

Brick & Mortor Sales Tab ........................................................................................................... 7-5Refine Sales Plan by Look View ........................................................................................ 7-5Review Sales Plan View...................................................................................................... 7-6

Direct Sales Tab ........................................................................................................................... 7-6Refine Sales Plan by Look View ........................................................................................ 7-6Review Sales Plan View...................................................................................................... 7-7

Step 2 - Create Receipt Plan .............................................................................................................. 7-7Custom Menu Option................................................................................................................. 7-8

Create Receipts..................................................................................................................... 7-8Receipt Parameters Tab.............................................................................................................. 7-8

Receipt Parameters View.................................................................................................... 7-8Receipt Plan Tab.......................................................................................................................... 7-8

Refine Receipt Plan by Look View .................................................................................... 7-8Review Receipt Plan View.................................................................................................. 7-9

Step 3 - Refine Buying Plan............................................................................................................... 7-9Review Buy Plan Tab............................................................................................................... 7-10

Buying Plan by Attribute View....................................................................................... 7-10Buying Plan by Color View............................................................................................. 7-10

Brick & Mortar Tab .................................................................................................................. 7-11Refine Buying Plan View................................................................................................. 7-11

Direct Buy Plan Tab ................................................................................................................. 7-11Refine Buying Plan View................................................................................................. 7-12

Inventory Review Tab ............................................................................................................. 7-12

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Inventory Review View ................................................................................................... 7-12Step 4 - Reconcile to Targets .......................................................................................................... 7-13

Reconcile to PoC Targets View .............................................................................................. 7-13Step 5 - Approve.............................................................................................................................. 7-13

Custom Menu Option.............................................................................................................. 7-13Approve Plan .................................................................................................................... 7-14

Approve View .......................................................................................................................... 7-14

8 Optimize Size/Pack Allocations

Optimize AP Size/Pack Allocations Task............................................................................................ 8-1Create the Optimize AP Size & Pack Allocations Workbook...................................................... 8-2Step 1 - Review Buying Plan............................................................................................................. 8-2

Buying Plan by PoC View.......................................................................................................... 8-3Step 2 - Review & Apply Size Profiles ............................................................................................ 8-3

Custom Menu Option................................................................................................................. 8-3Apply Size Profiles .............................................................................................................. 8-3

Size Profiles Tab .......................................................................................................................... 8-3Review Size Profiles View .................................................................................................. 8-3

Attribute Code & Size Range Tab............................................................................................. 8-4Review Attribute Codes & Size Ranges View ................................................................. 8-4

Receipts by Size Tab ................................................................................................................... 8-4Review Receipts by Size View ........................................................................................... 8-4

Step 3 - Optimize Allocations........................................................................................................... 8-5Custom Menu Option................................................................................................................. 8-5

Apply Prepack Definitions ................................................................................................. 8-5Prepack Definitions Tab............................................................................................................. 8-5

Review Prepack Eligibility View....................................................................................... 8-5Review Prepack Definitions View..................................................................................... 8-6

Optimize Allocations Tab .......................................................................................................... 8-6Perform Prepack Optimization View ............................................................................... 8-6

Receipts by Prepack Tab ............................................................................................................ 8-7Receipts by Prepack View .................................................................................................. 8-7Loose Receipts (Eaches) View............................................................................................ 8-7Comparison to Expected Receipts View .......................................................................... 8-8

Step 4 - Approve Allocations............................................................................................................ 8-8Custom Menu Option................................................................................................................. 8-8

Approve ................................................................................................................................ 8-8Approve Allocations View ........................................................................................................ 8-8

9 In-Season/Historical Analysis

In-Season Analysis Task ......................................................................................................................... 9-1Create the In-Season Analysis Workbook ...................................................................................... 9-1In-Season Analysis Step .................................................................................................................... 9-2

Extend/Markdown Drop Tab................................................................................................... 9-3Extend - Markdown - Drop Analysis View ..................................................................... 9-3Attribute Filtering View...................................................................................................... 9-5

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Metric Scoring View ............................................................................................................ 9-6Sales & Margin Tab..................................................................................................................... 9-6

Sales & Margin Analysis View........................................................................................... 9-6Attribute Filtering View...................................................................................................... 9-6

Look Tab....................................................................................................................................... 9-7Look Performance by Attribute View............................................................................... 9-7

Cluster Tab................................................................................................................................... 9-7Cluster Performance by Attribute View........................................................................... 9-7

Curves Tab ................................................................................................................................... 9-8Planned vs. Actual Sales Curves View ............................................................................. 9-8Attribute Filtering View...................................................................................................... 9-8

Size Breaks Tab............................................................................................................................ 9-9Broken Size Sell-Thru Analysis View ............................................................................... 9-9Set Sell-Thru Risk Factor View .......................................................................................... 9-9

Color Break Tab........................................................................................................................ 9-10Broken Color Sell-Thru Analysis View.......................................................................... 9-10Set Sell-Thru Risk Factor View ....................................................................................... 9-10

Historical Analysis Task ...................................................................................................................... 9-10Create the Historical Analysis Workbook ................................................................................... 9-11Historical Assortment Analysis Step............................................................................................ 9-12

Fulfillment Tab ......................................................................................................................... 9-12Fulfillment Metrics View ................................................................................................. 9-12

Direct Tab .................................................................................................................................. 9-13Direct Performance Metrics View .................................................................................. 9-13

Product Attributes Tab............................................................................................................ 9-14Performance by Attribute View...................................................................................... 9-14

Customer Tab ........................................................................................................................... 9-14Customer Sales Analysis View ....................................................................................... 9-14Customer Attributes View............................................................................................... 9-15Product Attributes View.................................................................................................. 9-15

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List of Tables

2–1 Business Roles in AP Maintenance.......................................................................................... 2-13–1 Business Role in Lifecycle Curve Profile Maintenance ........................................................ 3-14–1 Business Role in Cluster Maintenance .................................................................................... 4-15–1 Business Role in Create Shopping List ................................................................................... 5-16–1 Business Role in Build the Wedge ........................................................................................... 6-17–1 Business Roles in Buying Plan ................................................................................................. 7-18–1 Business Role in Optimization Size/Pack Allocations......................................................... 8-19–1 Business Role in Size/Pack Allocation ................................................................................... 9-1

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List of Figures

1–1 Assortment Planning Process.................................................................................................... 1-51–2 Look Group and Look Example ............................................................................................... 1-61–3 Cluster, Subclasses, and Calendar Relationship to Looks and Look Groups .................... 1-61–4 Style-Color Relationships to Looks and Look Groups .......................................................... 1-71–5 Cluster Scenario Examples ........................................................................................................ 1-91–6 PLM and AP Process Model................................................................................................... 1-141–7 Visual Planning Using Images as Column or Row Headers ............................................. 1-151–8 Visual Planning Using Images as Dimension Attributes................................................... 1-151–9 Visual Planning Using Images as Measures ........................................................................ 1-161–10 Visual Planning Using Images as Popup Window............................................................. 1-161–11 Visual Planning Using a Time-Phased View ....................................................................... 1-171–12 Custom Menu Options............................................................................................................ 1-172–1 Assortment Setup Task .............................................................................................................. 2-22–2 Define PoC Attribute Values View........................................................................................... 2-32–3 Assign PoC Attributes View...................................................................................................... 2-32–4 View PoC Open & Close Dates View....................................................................................... 2-42–5 Define Store Space View ............................................................................................................ 2-52–6 Define Strategy Weights View .................................................................................................. 2-62–7 Define Product Attributes Values View .................................................................................. 2-72–8 Define Product Attributes Values View - Price Tier .............................................................. 2-82–9 Determine Attribute Eligibility View....................................................................................... 2-92–10 Define Colors View.................................................................................................................. 2-102–11 Define Basic Color Runs View ............................................................................................... 2-102–12 Define Seasonal/Trend Color Runs View............................................................................ 2-112–13 Define Price Tiers View........................................................................................................... 2-112–14 Define Customer Attributes View......................................................................................... 2-122–15 Define Space Capacity & Constraints View......................................................................... 2-132–16 Define Inclusion Status Values View .................................................................................... 2-142–17 Define Decision Values View ................................................................................................. 2-152–18 History Mapping View ........................................................................................................... 2-162–19 Define Size Profiles & Pack Task ........................................................................................... 2-172–20 Workbook Wizard Select Product(s) Page ........................................................................... 2-172–21 Define Size Profiles View........................................................................................................ 2-182–22 Define Prepacks View ............................................................................................................. 2-182–23 Create PoC Targets Task......................................................................................................... 2-192–24 Workbook Wizard Select Product(s) Page ........................................................................... 2-202–25 Workbook Wizard Select Period(s) Page.............................................................................. 2-202–26 Review MFP Targets View ..................................................................................................... 2-212–27 Set PoC Targets View .............................................................................................................. 2-222–28 Review PoC Targets View ...................................................................................................... 2-232–29 Look Maintenance Task .......................................................................................................... 2-242–30 Workbook Wizard Select Look Group(s) Page.................................................................... 2-242–31 Define Look(s) View ................................................................................................................ 2-262–32 Look Calendar View................................................................................................................ 2-272–33 Assign Subclass(es) View........................................................................................................ 2-282–34 Look/Subclass Calendar View .............................................................................................. 2-282–35 Assign Strategies View............................................................................................................ 2-292–36 Seed from Sister Look View ................................................................................................... 2-312–37 Determine Assortment Mix View.......................................................................................... 2-322–38 Determine Color Mix View .................................................................................................... 2-323–1 Lifecycle Curves Task................................................................................................................. 3-13–2 Workbook Wizard Select Product(s) Page .............................................................................. 3-23–3 Define Curve Labels and Define Curve Profiles Views ........................................................ 3-34–1 Clustering Task ........................................................................................................................... 4-3

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4–2 Workbook Wizard Select Look Group Page ........................................................................... 4-34–3 Workbook Wizard Select Source for Perf Clustering Page................................................... 4-44–4 Workbook Wizard Select Time Periods for Source Page ...................................................... 4-44–5 Workbook Wizard Select PoC Channel Page ......................................................................... 4-54–6 Review/Set Weights View......................................................................................................... 4-74–7 Select Cluster Attributes View .................................................................................................. 4-74–8 Define Performance Clusters View .......................................................................................... 4-84–9 Define Space Clusters View....................................................................................................... 4-94–10 PoC Analysis View .................................................................................................................. 4-104–11 Cluster Results View ............................................................................................................... 4-114–12 Approve Clusters View........................................................................................................... 4-145–1 Create Shopping List Task......................................................................................................... 5-35–2 Workbook Wizard Select Look(s) Page ................................................................................... 5-45–3 Review History by Attribute View........................................................................................... 5-55–4 Review History by Customer View.......................................................................................... 5-55–5 Review PoC Plan View............................................................................................................... 5-65–6 Review Sister Look by Attribute View .................................................................................... 5-75–7 Review Sister Look by Customer View ................................................................................... 5-75–8 Review Look View...................................................................................................................... 5-85–9 Determine # of Styles-Colors using Sales View................................................................... 5-105–10 Review Space Capacity & Constraints View ....................................................................... 5-115–11 Assign # of Fixtures View ....................................................................................................... 5-115–12 Determine # of Styles-Colors using Capacity View............................................................ 5-125–13 Determine # of Styles-Colors using Sales View................................................................... 5-135–14 Seed Target Mix View ............................................................................................................. 5-145–15 Target Mix by Attribute View................................................................................................ 5-145–16 PLM and AP Process Model................................................................................................... 5-155–17 Fill the Shopping List View .................................................................................................... 5-165–18 Style-Color Totals & Financial Budget View ....................................................................... 5-175–19 Define Styles View ................................................................................................................... 5-185–20 Product Attributes View ......................................................................................................... 5-195–21 Shopping List by Attribute View........................................................................................... 5-195–22 Shopping List by Customer View.......................................................................................... 5-205–23 Sister Look Shopping List by Attribute View...................................................................... 5-215–24 Sister Look Shopping List by Customer View..................................................................... 5-215–25 Approve Shopping List View................................................................................................. 5-226–1 Traditional Wedge Approach versus Oracle Retail’s Tailored Wedges ............................. 6-26–2 Build the Wedge Task ................................................................................................................ 6-46–3 Workbook Wizard Select Look(s) Page ................................................................................... 6-46–4 Review History by Attribute View........................................................................................... 6-66–5 Review History by Customer View.......................................................................................... 6-66–6 Review PoC Plan View............................................................................................................... 6-76–7 Review Shopping List View ...................................................................................................... 6-76–8 Review Sister Look by Attribute View .................................................................................... 6-86–9 Review Sister Look by Customer View ................................................................................... 6-86–10 Review Look View...................................................................................................................... 6-96–11 Determine # of Styles-Colors using Sales View................................................................... 6-116–12 Review Space Capacity & Constraints View ....................................................................... 6-126–13 Assign # of Fixtures View ....................................................................................................... 6-126–14 Determine # of Styles-Colors using Capacity View............................................................ 6-136–15 Determine # of Styles-Colors using Sales View................................................................... 6-146–16 Seed Target Mix View ............................................................................................................. 6-156–17 Target Mix by Attribute View................................................................................................ 6-156–18 Target Mix by Color View ...................................................................................................... 6-166–19 Wedge Population Automation Recommendation Example ............................................ 6-18

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6–20 Fill the Wedge View ................................................................................................................ 6-196–21 Style-Color Totals & Financial Budget View ....................................................................... 6-196–22 Tailor the Wedge View............................................................................................................ 6-206–23 Define Style-Colors View........................................................................................................ 6-206–24 Color Attribute View............................................................................................................... 6-216–25 Product Attributes View ......................................................................................................... 6-216–26 Wedge by Attribute View....................................................................................................... 6-226–27 Wedge by Color View ............................................................................................................. 6-236–28 Wedge by Customer View...................................................................................................... 6-236–29 Sister Look Wedge by Attribute View .................................................................................. 6-246–30 Sister Look Wedge by Color View ........................................................................................ 6-246–31 Sister Look Wedge by Customer View................................................................................. 6-256–32 Approve Wedge View............................................................................................................. 6-277–1 Buying Plan Task ........................................................................................................................ 7-27–2 Workbook Wizard Select Look(s) Page ................................................................................... 7-27–3 Review Look View...................................................................................................................... 7-47–4 Review Wedge View .................................................................................................................. 7-47–5 Review Sales Curves View ........................................................................................................ 7-47–6 Define Sales Parameters View................................................................................................... 7-57–7 Refine Sales Plan by Look View................................................................................................ 7-67–8 Review Sales Plan View ............................................................................................................. 7-67–9 Refine Sales Plan by Look View................................................................................................ 7-77–10 Review Sales Plan View ............................................................................................................. 7-77–11 Receipt Parameters View ........................................................................................................... 7-87–12 Refine Receipt Plan by Look View ........................................................................................... 7-97–13 Review Receipt Plan View......................................................................................................... 7-97–14 Buying Plan by Attribute View.............................................................................................. 7-107–15 Buying Plan by Color View .................................................................................................... 7-117–16 Refine Buying Plan View ........................................................................................................ 7-117–17 Refine Buying Plan View ........................................................................................................ 7-127–18 Inventory Review View .......................................................................................................... 7-127–19 Reconcile to PoC Targets View .............................................................................................. 7-137–20 Approve View .......................................................................................................................... 7-148–1 Optimize AP Size & Pack Allocations Task ............................................................................ 8-28–2 Workbook Wizard Select Look(s) Page ................................................................................... 8-28–3 Buying Plan by PoC View.......................................................................................................... 8-38–4 Review Size Profiles View ......................................................................................................... 8-48–5 Review Attribute Codes & Size Ranges View ........................................................................ 8-48–6 Review Receipts by Size View .................................................................................................. 8-58–7 Review Prepack Eligibility View .............................................................................................. 8-68–8 Review Prepack Definitions View............................................................................................ 8-68–9 Perform Prepack Optimization View....................................................................................... 8-78–10 Receipts by Prepack View.......................................................................................................... 8-78–11 Loose Receipts (Eaches) View ................................................................................................... 8-88–12 Comparison to Expected Receipts View.................................................................................. 8-88–13 Approve Allocations View ........................................................................................................ 8-99–1 In-Season Analysis Task ............................................................................................................ 9-29–2 Workbook Wizard Select Look(s) Page ................................................................................... 9-29–3 Extend / Markdown / Drop Analysis View .......................................................................... 9-59–4 Style-Color Pop-up Window Accessible in the Extend/Markdown/Drop Analysis View ...

9-59–5 Attribute Filtering View............................................................................................................. 9-69–6 Metric Scoring View ................................................................................................................... 9-69–7 Sales & Margin Analysis View.................................................................................................. 9-69–8 Attribute Filtering View............................................................................................................. 9-7

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9–9 Look Performance by Attribute View...................................................................................... 9-79–10 Cluster Performance by Attribute View.................................................................................. 9-89–11 Planned vs. Actual Sales Curves View .................................................................................... 9-89–12 Attribute Filtering View............................................................................................................. 9-99–13 Broken Size Sell-Thru Analysis Curves View......................................................................... 9-99–14 Set Sell-Thru Risk Factor View.................................................................................................. 9-99–15 Broken Color Sell-Thru Analysis Curves View ................................................................... 9-109–16 Set Sell-Thru Risk Factor View............................................................................................... 9-109–17 Historical Analysis Task ......................................................................................................... 9-119–18 Workbook Wizard Select Product(s) Page ........................................................................... 9-129–19 Fulfillment Metrics View ........................................................................................................ 9-139–20 Direct Performance Metrics View.......................................................................................... 9-139–21 Performance by Attribute View............................................................................................. 9-149–22 Customer Sales Analysis View .............................................................................................. 9-159–23 Customer Attributes View...................................................................................................... 9-159–24 Product Attributes View ......................................................................................................... 9-16

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Send Us Your Comments

Oracle Retail Assortment Planning User Guide for the RPAS Fusion Client, Release 14.1.1

Oracle welcomes customers' comments and suggestions on the quality and usefulness of this document.

Your feedback is important, and helps us to best meet your needs as a user of our products. For example:

■ Are the implementation steps correct and complete?

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Preface

This document describes the Oracle Retail Assortment Planning user interface. It provides step-by-step instructions to complete most tasks that can be performed through the user interface.

AudienceThis document is for users and administrators of Oracle Retail Assortment Planning. This includes merchandisers, buyers, business analysts, and administrative personnel.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.

Access to Oracle SupportOracle customers that have purchased support have access to electronic support through My Oracle Support. For information, visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=info or visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs if you are hearing impaired.

Related DocumentsFor more information, see the following document in the Oracle Retail Assortment Planning Release 14.1.1 documentation set:

■ Oracle Retail Assortment Planning Implementation Guide

■ Oracle Retail Assortment Planning Installation Guide

■ Oracle Retail Assortment Planning Release Notes

Customer SupportTo contact Oracle Customer Support, access My Oracle Support at the following URL:

https://support.oracle.com

When contacting Customer Support, please provide the following:

■ Product version and program/module name

■ Functional and technical description of the problem (include business impact)

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■ Detailed step-by-step instructions to re-create

■ Exact error message received

■ Screen shots of each step you take

Review Patch DocumentationWhen you install the application for the first time, you install either a base release (for example, 14.1) or a later patch release (for example, 14.1.1). If you are installing the base release or additional patch releases, read the documentation for all releases that have occurred since the base release before you begin installation. Documentation for patch releases can contain critical information related to the base release, as well as information about code changes since the base release.

Improved Process for Oracle Retail Documentation CorrectionsTo more quickly address critical corrections to Oracle Retail documentation content, Oracle Retail documentation may be republished whenever a critical correction is needed. For critical corrections, the republication of an Oracle Retail document may at times not be attached to a numbered software release; instead, the Oracle Retail document will simply be replaced on the Oracle Technology Network Web site, or, in the case of Data Models, to the applicable My Oracle Support Documentation container where they reside.

This process will prevent delays in making critical corrections available to customers. For the customer, it means that before you begin installation, you must verify that you have the most recent version of the Oracle Retail documentation set. Oracle Retail documentation is available on the Oracle Technology Network at the following URL:

http://www.oracle.com/technetwork/documentation/oracle-retail-100266.html

An updated version of the applicable Oracle Retail document is indicated by Oracle part number, as well as print date (month and year). An updated version uses the same part number, with a higher-numbered suffix. For example, part number E123456-02 is an updated version of a document with part number E123456-01.

If a more recent version of a document is available, that version supersedes all previous versions.

Oracle Retail Documentation on the Oracle Technology NetworkDocumentation is packaged with each Oracle Retail product release. Oracle Retail product documentation is also available on the following web site:


(Data Model documents are not available through Oracle Technology Network. These documents are packaged with released code, or you can obtain them through My Oracle Support.)

Documentation should be available on this web site within a month after a product release.

ConventionsThe following text conventions are used in this document:



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Convention Meaning

boldface Boldface type indicates graphical user interface elements associated with an action, or terms defined in text or the glossary.

italic Italic type indicates book titles, emphasis, or placeholder variables for which you supply particular values.

monospace Monospace type indicates commands within a paragraph, URLs, code in examples, text that appears on the screen, or text that you enter.

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1

Introduction 1-1

1 Introduction

This chapter provides an introduction to Oracle Retail Assortment Planning (AP).

What is Assortment Planning?The assortment planning process establishes the breadth and depth of the product offering (including the color/fragrance/flavor and size level), for Points-of-Commerce (stores, sites, applications, catalogs, social commerce networks, whole-sale/franchise locations/groups, and so on) and for a given period of time. The analysis of past performance such as color effectiveness, trend adoption, size preferences, customer segmentation, styling visualization, in-store placement, and geographic selling are key inputs into revising a currently planned/executed assortment or building a new assortment.

Assortment Planning is a role-based solution enabling each role (Senior Merchant, Buyer/Trader and Planner, and so on) to use the solution to develop, record, and track their assortment decisions and strategies. A role-based user can do the following:

■ Decide the breadth and depth of the assortment by Point-of-Commerce (stores, sites, applications, catalogs, social commerce networks, whole-sale/franchise locations/groups, and so on).

■ Identify the number of styles or items and the number of options (colors/fragrances/flavors) per assorted style or item.

■ Evaluate both the sales/margin potential as well as the sales/inventory capacity for a single or group of Points-of-Commerce.

■ Create a shopping list for use when going to market, meeting with designers/vendors, reviewing Look Books, and so on, that can be used to flesh out the assortment as decisions are made.

■ View the look and feel and of the assortment from the customer's perspective as a collection and at the detail level.

■ Determine where to make receipt and inventory investments in the assortment.

■ Create a buy plan (sales, margin, inventory, receipts, and sell-thru) to guide the execution of the assortment and to track its results.

■ Align the assortment plan with the Merchandise Financial Plan (MFP) and/or Location Plan (LP).

■ Re-trend the assortment plan to make in-season assortment decisions.

■ Assign the color runs (or fragrance of format groups) to be carried for each style/item.

What is Assortment Planning?

1-2 Oracle Retail Assortment Planning User Guide for the RPAS Fusion Client

■ Set up (if not using Oracle Retail Size Profile Optimization (SPO)) or review size profiles and pack definitions to be used when executing the assortment in each Point-of-Commerce.

■ Use Oracle Retail Science to convert the Buy Plan's receipt quantities into a style-color-size receipt plan in eaches and/or in prepacks.

■ Use the Weekly/Historical analysis to apply what you have learned from assortments in a single or groups of Points-of-Commerce and prior assortments when creating new or revising planned assortments.

■ Execute assortment decisions through the packaged integration.

There are several processes by which an assortment can be established in this solution:

■ Collaborate with internal design teams to develop house brand assortments.

■ An initial super-set is supplied by Product Lifecycle Management (PLM) solutions:

– Then choose from super-set of options in AP.

■ Select options and request adjustments be made from an assortment offered by third-party vendors.

■ Create a global assortment from which each regional business unit selects a subset to carry in their region.

■ Wholly owned, wholesale, and franchise model:

– Build an assortment for wholly owned Points-of-Commerce (stores, sites, applications, networks, and so on).

– Recommend an assortment for wholesale customers.

– Identify an assortment to be sold through franchised locations.

■ Omni-channel—Identify a super-set of assortment options and then determine which options by location will be available for the following:

– Both sale and fulfillment.

– Order creation only (and potentially for demonstration/trying on).

– Fulfillment only.

All of the Oracle Retail Planning solutions are highly configurable to enable each retailer's assortment business-specific, successful business methods to be embedded in the solution and business process. Oracle Retail has identified several keys to success with the Assortment Planning solution, including:

■ Align with the Merchandising Plan - The Assortment Plan must be aligned with the Merchandise Financial Plan (MFP) and/or Location Plan (LP) to insure the inventory investment required to support the Assortment Plan is financially viable and risk approved (AP offers packaged and configurable integration that links assortment plans to financial plans).

■ Process Flexibility - Assortment planning processes vary widely within each retailer and across retailers. The business process must be flexible so that merchants can keep current with fashion trends, market shifts, economic changes, and customer preferences.

■ Build the assortment in layers - Build and view the assortment in attribute-based layers. Evaluate the assortment by brand, color, color family, fabric, silhouette, fit, length, embellishment, trend, and so on, and compare the prevalence by attribute to recent trend, last season, last floor set, customer panels and social network, or Endeca search results.

What is a Point of Commerce?

Introduction 1-3

■ Plan the full lifecycle - Plan the entire lifecycle, from launch to normal selling to clearance and exit. (The AP solution plans the entire life of the assortment and integrates with its promotion and clearance pricing solutions to maximize the assortment's profitability.)

■ Plan the assortment visually - Because customers do not shop from a spreadsheet, Oracle Retail believes that merchants should not have to plan the assortment with only a spreadsheet. Oracle Retail's Assortment Planning solutions enable the merchant to view the assortment from silhouettes at the beginning to finished goods at the end.

■ Plan once and execute everywhere - Be able to make a decision in Assortment Planning and execute it everywhere without manual reentry of the decision in multiple solutions. Oracle Retail Assortment Planning solution can, depending on the implementation, integrate data with the Oracle Retail Merchandising System, as well as, Oracle Retail Clearance Optimization, Size/Pack Optimization, and Allocation/Replenishment solutions.

These same integration options, as most are configurable, can be used for integration with non-Oracle solutions as well.

What is a Point of Commerce?Before the rise to prominence of commerce web sites, mobile applications, and social commerce networks, the Assortment Planning solution traditionally used the terms Location, Location Hierarchy and Store Clustering Hierarchy to describe stores. With this release of Assortment Planning, Oracle Retail is introducing a more inclusive term that recognizes what has become a considerable share of a retailer's revenue and profits: Point of Commerce, abbreviated as PoC.

PoC can refer to any location at which sales can be created, including:

■ Physical stores

■ Catalogs

■ Call centers

■ Web sites

■ Mobile applications

■ Social commerce networks (that is, Pinterest, Twitter, Facebook, Google Commerce and so on)

PoC is a generic and important term because it encompasses the ways retailers now are generating revenue and extending their customer relationships.

■ In place of location or store, AP uses Point of Commerce or PoC. Note that in this document, these terms are also utilized: store, site, and application.

■ In place of Store Clustering, Oracle Retail refers to the Clustering capability embedded in Assortment Planning as just Clustering as opposed to the advanced version of Clustering found in the Oracle Retail Advanced Clustering solution that works with clusters based on Customer Segment profiles and more advanced algorithms that build clusters based on attribute proximity.

Note: See the Oracle Retail Assortment Planning Installation Guide for compatible integrated Oracle Retail applications.

Assortment Planning Business Process


Assortment Planning Business ProcessAssortment Planning is a business function that merchants and planners perform to determine the appropriate mix of products that maximizes organizational goals: sales, profits, inventory turn, and so on. The challenge is to create fresh and new presentations of merchandise that are appropriate to the end-customer by considering the Points-of-Commerce, fulfillment type, customer expectations, lifestyle, climate, festive seasons, fashion trends, and so on.

Retailers usually control budgets by defining multiple floor sets (called Looks in the out-of-the-box version of Assortment Planning). In order to present a fresh look, multiple floor sets could be planned within a season for short time periods. Assortment Planning requires finding the balance between several competing constraints that the Merchant and Planner must consider. The presentation should have a rich mix of products in terms of material, styling, brand, seasonality, and price point. However, all of these choices have to be constrained by the receipt/inventory budgets and screen/floor space available. Also, choices must be made between style-colors/items that are high trend, seasonal trend, classic, and basic as well as between highly profitable yet less predictable sellers and those that deliver moderate margins but have more predictable and longer lifecycles.

Each Point-of-Commerce (stores, sites, applications, catalogs, social commerce networks, whole-sale/franchise locations/groups, and so on) has its unique characteristics and could require a different assortment in a specific size ratio to maximize potential. However, with the number of variables involved in planning and executing assortments, it is a beneficial business practice to group Points-of-Commerce into a manageable number of clusters and to create an assortment plan at the cluster level.

While the detailed Assortment Planning process varies from category to category and/or by Point-of-Commerce type (also known as Channel) within a retailer, there are, at a high level, a common set of steps.

The following chart shows the Oracle Retail out-of-the-box Assortment Planning process by persona (or role). Given the solution's high level of configurability, this solution can be configured significantly or minimally to match each category's assortment approach.

Note that it is not required that the Visual Merchant, Central Sales Planner, Merchandise Planner, and Allocator use the Generally Available (GA) version of AP. These users create important data that is used in any Assortment Planning process. This version of AP enables these additional users to create their data here in the Plan Setup steps or the data can be loaded from an external source.


Introduction 1-5

Figure 1–1 Assortment Planning Process

In the following sections, what is accomplished, who is doing the work, and what are the inputs are described for each step in the process.

Plan SetupThis process step covers preparation for the planning process. The Buyer, Merchandise Planner, Central Planning team, and Visual Merchandise Planner could be performing these steps (or the data could be loaded from an external source):

Look MaintenanceIn this step, set up or load your look, floor-set, theme, or assortment calendar based on the following questions:

■ What is a look?

A look is a way to manage your work in the same increments as your floor-set, theme, or assortment calendar. The label look can be changed to match your terminology.

■ What defines a look?

A look represents a floor set, and so on, for a specific period of time for one or more subclasses.

■ What is a look group?

A look group is a group of looks. One way to remember is that a look group contains all of your spring floor sets and each look is one of your spring floor sets. Following are guidelines for look groups:

– A subclass can be assigned to only one look at a time for each calendar day. For example, Subclass 40 is assigned to Look A for days 1 to 15 and Look B for days 16 to 30.

– Multiple subclasses can be assigned to the same look.

– Looks can start and end on any day. In the GA version, Looks that are assigned the same subclasses are not allowed to overlap within a fiscal week.



This constraint was put in place to simplify and provide a clean reconciliation to the financial plan.

– A subclass can be assigned to multiple looks within a look group, but only one look at a time.

– A style-color can be the following:

* Launched and clearanced in the same look.

* Launched in Look A, carried over into Look B, and clearanced in Look C.

* Launched in Look A, taken off the floor in Look B, and reintroduced in Look G.

* Launched, carried over, and clearanced in many different combinations of looks.

– Following are three possible look/look group scenarios:

* A group of subclasses with similar items (all women's knit career tops) are assigned to the same look.

* A group of subclasses with related items (women's career tops and bottoms) designed to sell together are assigned to the same look.

* A group of subclasses that could be brand-based (tops, bottoms, and accessories with the same theme) from the same Brand X are assigned to the same look.

Figure 1–2 Look Group and Look Example

■ What about clusters?

In the generally available version of AP, clustering is the same for all looks in a look group. Clustering can vary across look groups.

Figure 1–3 Cluster, Subclasses, and Calendar Relationship to Looks and Look Groups

■ If a style is carried in three consecutive looks, you do not need to plan the style three times. You can create a plan for the entire life of the item in a single Buy Plan. The solution insures the sales for each look are accounted for in each look's sales


Introduction 1-7

totals. You also can plan receipts for Style-Color 1 in the Spring 1 Tops Look in order to support sales in the Spring 2 Tops look.

Figure 1–4 Style-Color Relationships to Looks and Look Groups

MFP/LP TargetsAs previously mentioned, a key step in the Assortment Planning process is to align the sales margin or markdowns, inventory and receipt plans in the Assortment Plan with the Merchandise Financial Plan (MFP):

■ The RPAS Platform enables Assortment Plans to be rolled up to any level of product, location, and time.

■ In order to provide the best option for aligning the plans, this step enables a Merchant, Planner, or Administrator to decide how to spread the Merchandise Financial Plan and/or Last Year sales to generate Location Plan to Subclass, Point-of-Commerce, and Week:

– The Last Year Sales by Point-of-Commerce can be used to spread the Merchandise Financial Plan proportionally down to the lowest aggregate level of the Assortment Plan for alignment purposes at this level and at all aggregate levels.

– This step is completed in real-time and does not require a batch.

■ If your Merchandise Financial and Location Plans are already at this level, also known as the Location Plan, this step can be skipped.

Size Profiles/Prepack DefinitionsIn this Administrative step, size profiles and prepack definitions are set up so that later, Buyers can select sizes and prepacks for each style-color carried in their assortment. This step is optional, if either of the following is true:

■ Size profiles and/or prepack definitions can be loaded from an external source.

■ Size profiles and/or prepack definitions are selected/optimized by another solution such as the Oracle Retail Size Profile Optimization solution are loaded into the AP solution.

Selling Curve MaintenanceA Selling Curve shows the typical shape of sales over the full life (launch, regular price, promotion and clearance) of a style-color or item.

1. These curves are used to create a weekly sales plan for the Buying Plan. Because the Senior Buyer has already determined the total and full price sales expected for the item (total - full price = clearance), a selling curve can be used to calculate the weekly sales for the style-color/item throughout its lifecycle.



2. Sales curves typically are created for each combination of lifecycle length, launch period (launching in May versus November for 12 weeks results in very different sales curves), and channel.

The following are examples:

■ May accessories launch - 10 week full and 4 week clearance lifecycle in physical stores.

■ May accessories launch - 12 week full and 4 week clearance lifecycle on-line/in application.

■ November accessories launch - 10 week full and 4 week clearance lifecycle in physical stores.

■ November accessories launch - 12 week full and 4 week clearance lifecycle on-line/in application.

3. These curves may be created from history, plans, forecasts, and/or loaded from an external source.

4. This Administrative step can be performed by the central planning team or Planning Administrator.

Cluster MaintenanceThe following applies to the process step:

■ Assortments are created/planned for a group of Points-of-Commerce (stores, sites, applications, catalogs, social commerce networks, whole-sale/franchise locations/groups, and so on). Each Point-of-Commerce within a Cluster receives an identical assortment of style-colors/items. However, each Point-of-Commerce within a Cluster can receive a set of sizes and/or prepacks of those style-colors/items that are appropriate for their customers.

Store 1 and 2 are in the same cluster for subclass A and therefore receive the same assortment of style-colors from subclass A in the next floor-set. However, store 1 may receive the extended sizes for the assortment, while store 2 may receive just the core sizes.

■ The merchant or planner can choose to create the clusters in the Cluster Maintenance step or load clusters from a clustering solution, such as the Oracle Retail Advanced Clustering, or from another source.

■ The Cluster Maintenance process within this Assortment Planning solution enables the Merchant or Planner to use a number of techniques when creating the clusters, including:

– Vary the clustering approach by look group (all looks under a look group would be clustered in the same way for the subclasses assigned to the looks in a look group).

– Nesting - Each Point-of-Commerce is assigned to a cluster and each cluster is assigned to a cluster parent. For example, see Figure 1–5.

– Historical sales, margin, and markdown performance profiles.

– Planned sales, margin, and markdown performance profiles.

– Climate and geographic attributes.

– Point-of-Commerce specific attributes.

– Fulfillment type attributes.


Introduction 1-9

– Product type attributes (brand X can only be sold in stores in markets A and B).

– Any other attribute not found in the generally available version of Assortment Planning can be loaded or created using the user interface.

Figure 1–5 Cluster Scenario Examples

Create the Shopping ListThis process enables merchants to collect their assortment ideas and thoughts, record their decisions as they go to market, work with designers, and view look books, collections, and so on. In this task, merchants can perform the following:

■ Determine/calculate the number of styles for which the Senior Buyer wishes to eventually carry (either in total or by cluster parent, where each cluster would be eligible to carry the assortment created for its cluster parent). This can be calculated through the use of sales plans (sales per subclass goals), historical sales, and/or fixture/page capacity or manually entered by the Senior Buyer.

■ Merchants can set assortment targets by attribute (brand, silhouette, sleeve length, heel height, width, and so on) and/or by Customer Segment. Dozens of attributes are packaged with the generally available version and many more can be added through configuration to suit each category's needs.

These targets may be seeded from the Look, from Last Year, loaded from an external source or set administratively by each Senior Buyer.

■ As the Shopping List assortment is built out by the Senior Buyer, the assortment mix, percentage of new and carryover styles, and so on, can be compared to the targeted assortment size using the Assortment Tote board.

■ Senior Buyers can use the shopping list to piece together their style level assortments by answering the following types of questions:



– What key trends must be reflected in the assortment and how have I assorted to those trends to date?

– How many styles should be carried from Brand X versus Last Year or from the last major floor-set?

– Should I shift the number of styles by price point tiers? Should a tier be added or subtracted?

– Which silhouettes, embellishments, brands, and so on, should be featured versus supported?

– How should the assortment be adjusted from look to look (floor-set to floor-set)? Should a specific assortment be pre-launched and built for two floor-sets before contracting it?

– How many colors and color runs (basic, seasonal basic, trend, and so on) should be carried by this style?

– Should this style be carried in a basic or an extended size run?

– Hundreds of decisions are made in this phase and all of them can be recorded here, rather than in a spreadsheet, e-mail, and so on.

– For new styles, the merchant/trader creates placeholder styles using Dynamic Position Maintenance (DPM). For more information on DPM, see the Oracle Retail Predictive Application Server User Guide for the Fusion Client.

■ Throughout the process, the styles can be aggregated by product attribute to compare the depth by attribute to your goals, last year, recent floor sets, customer panels/analysts, and even to social network or Endeca search results.

■ In addition to attributing the items, merchants can record their thoughts regarding cost, price, color runs, sales volume, and buy quantities for each style. This data can be used to seed the Buy Plan and the Buyer can adjust these further during the Build the Wedge process.

■ Then, as the Senior Buyers finalize the assortment, their decisions can be shared with a merchandising system so that styles created/updated in Assortment Planning can be created and updated automatically in the merchandising system. AP refers to this functionality as Slow Item Build. For more information on Slow Item Build, see "Slow Item Build" and the Oracle Retail Assortment Planning Implementation Guide.

■ This task will be revisited as the Senior Merchant analyzes and revises work-in-progress during and after going to market.

Build the WedgeOnce the Senior Buyer has completed the Shopping List (creating the style level assortment in total or by cluster parent), the Buyer then assigns the assortment to each Cluster of Points of Commerce, and the following steps occur:

1. Determine the number of styles-colors required for each Point of Commerce cluster.

This can be inherited from the Cluster Parent level number of style-colors (created by the Senior Buyer), calculated with sales plans (sales per subclass goals), historical sales, and/or fixture/page capacity or manually entered by the Buyer.

2. Create style-color level positions below the style (based on the number of colors per style identified by the Senior Buyer). As with style creation, the style-color need only be set up in AP. AP refers to this functionality as Slow Item Build. For


Introduction 1-11

more information on Slow Item Build, see "Slow Item Build" and the Oracle Retail Assortment Planning Implementation Guide.

3. Create Attribute and Color Assortment Goals - Attribute level goals created by the Senior Buyer at the Cluster Parent level in the Shopping List are copied to each cluster, then the Buyer can adjust each cluster's attribute goals as needed. As with the Shopping List, the Buyer can use last year, recent trend, customer panels, or social network or Endeca search results to set those attribute goals by cluster.

4. Fill the wedge. The Buyer determines the style-color level choices for each cluster. The Assortment Planning solution includes a feature called Wedge Population Automation. The automation recommends which style-color options to carry in each cluster. Note the following:

■ As always, Buyers can choose to utilize all, part, or none of the recommendations and/or change the goals and rerun the automation.

■ This automation runs in real-time, when the Buyer engages it (see Custom Menu options), not in batch.

5. The planned sales and buy quantity can be calculated based on the clusters assigned in this process.

6. Throughout the process, the Buyer can aggregate each cluster's assortment by attribute to compare the depth by brand, color, silhouette, and so on (for all attributes) to their goals, last year, recent trend, customer panels, and/or social networks/Endeca search.

Buy PlanningOnce the assortment has been created by the Senior Buyer and assigned to each cluster by the Buyer, an Assortment Buy Plan can be created.

A Buy Plan includes sales, margin (and/or markdowns), inventory, and receipts.

1. Seed the Buy Plan using the Lifecycle Curves created earlier and the total sales potential estimated by the Senior Buyer.

2. Plan multiple receipts to support the lifecycle of the item.

3. Move inventory from one cluster and/or channel to another (that is, move all non-store inventory for a style-color to a direct channel at the start of clearance, and so on).

4. Plan key metrics, such as sales average unit retail (AUR), periodic sell-thru, cumulative sell-thru, and the ending period inventory on-hand. Each channel may use a different method of deriving net sales, as some channels wish to plan Net Sales where it is the result of Gross Sales minus Returns and Cancellations, and so on. These calculations are configurable, so they can be tailored to your specific approach to planning Net Sales.

5. Reconcile the sales and receipt plans to the original assortment strategy, to the plan created in Merchandise Financial Planning and/or to the Location Plan at any level of aggregation (such as Subclass, Class, Department and/or Channel and/or Country and so on).

6. Once approved, the assortment plan may be exchanged with other solutions such as SPO, Allocation, Merchandise Financial Planning, Item Planning (IP), Product Lifecycle Management, and so on.

This plan can be revised and re-trended throughout the lifecycle of the style-color and utilized in the following in-season and post-season analysis process steps.



Size/Pack AllocationThere are two options for this process step:

■ If the Buyer is to select the sizes and prepacks, the Size and Pack Allocation workbook enables the Buyer to select the sizes and pack profiles to be carried for each style-color. This can be done at the cluster or cluster parent level and spread down to the store and then tailored there.

■ If the Buyer is using SPO or another solution to optimize sizes and prepacks for the style-color by store, the Size and Pack Allocation workbook gives the Buyer visibility to the sizes assigned to each style-color store combination. The Buyer is able to view the prepacks and their recommended quantities from SPO.

For more details on SPO, see the Oracle Retail Size Profile Optimization User Guide for the RPAS Fusion Client.

After performing one of the options, the Buyer can use the SPO algorithm to allocate the prepacks and/or eaches down to the style-color, prepack, store level or the style-color, size and store level (for eaches). Note the following:

■ This step allows the Buyer to allocate the initial receipt quantities (drops) at the store level in terms of prepacks and/or sizes. This step involves breaking the plan created at the style-color/week/store level into individual sizes and optimizing the buy quantities based on each store's size profile.

■ The Pack Optimization logic within AP optimizes the allocated prepacks in such a way that the store receipts are optimized for the first receipt-drop and also across the entire life of the style-color.

■ This information can also be shared with an Allocation solution and or order execution solution such as a merchandising system (in near real-time or in batch).

■ This step is optional.

In-Season/Historical AnalysisThere are two main goals for this process step:

■ Evaluate the performance of the assortment to plan and make corrections as needed once the assortment is utilized for the floor, site, application, network, and so on.

■ Evaluate the success of the assortment using multiple lenses and perspectives.

The key steps for this process include the following:

1. Perform Extend/Markdown/Drop analysis where the Buyer and/or Planner reviews performance to date along with the re-trended sales plans by style-color and cluster to determine whether to perform the following:

■ Extend the sales life of the style-color.

■ Mark down. Continue or change the existing clearance plan for the style-color and use Oracle Retail Clearance Optimization Engine (COE) to determine the appropriate prices.

■ Drop the style-color earlier than planned.

■ Do nothing and continue the existing plan.

2. Evaluate current, planned or historical sales, margin/markdown and inventory performance to plan, last year, and recent trend by:

■ Style-color, subclass, class, and so on

Assortment Planning and Product Lifecycle Management

Introduction 1-13

■ Calendar increments

■ Look

■ Cluster

■ Attribute

■ Fulfillment type

■ Direct-selling layer (viewed, put in basket, transacted against, returned, and so on)

■ Customer segment/group

3. Project current and planned or review historical inventory breaks by style-color.

4. Review current or historical style-color inventory breaks, or actual breaks, by size.

5. Evaluate accuracy of the sales curves used to seed the Buy Plan.

Slow Item Build■ As the Senior Buyer and Buyer are building the assortment, their decisions can be

shared with a merchandising system, so that styles and style-colors created/updated in Assortment Planning can be shared automatically with a merchandising system. AP refers to this functionality as Slow Item Build.

■ If this capability is utilized, Merchants no longer have to set up the style and style-colors twice (in both AP and a merchandising system). Styles and style-colors can be set up in AP only and allowed to be shared with a merchandising system. This functionality covers creating the style numbers, style and style-color descriptions, assignment to a department, class and subclass, as well as creating/updating the product attributes for the styles. For the GA version of AP, the following attributes are shared: brand, collection, color, fabric, lifestyle, occasion, pattern, price tier, seasonality, silhouette, sub-brand, and vendor (supplier).

■ This process is available when creating styles and/or the style-colors (as part of the Fill the Shopping List and Build the Wedge processes).

■ For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Implementation Guide.

Assortment Planning and Product Lifecycle ManagementSome retailers may use a Product Lifecycle Management (PLM) solution to manage the go to market process, where the PLM solution stores all of the potential assortment options. In this scenario, Senior Buyers use AP to store the choices they select from the full spectrum of options offered by the PLM solution. There are many appropriate models for interaction between PLM and AP (one model is shown in the following figure). This version of AP can be configured to support many of the PLM and AP process models that you are likely to utilize.

The following figure shows one example of a PLM and AP process model. Others are also supported.

Visual Planning


Figure 1–6 PLM and AP Process Model

Visual PlanningAssortment Planning provides visual planning capabilities. These capabilities are designed to enable merchants, buyers, traders, planners, and so on, to create assortments/assortment plans and to navigate the solution in a way that is consistent with how a customer shops the assortment, visually.

Visual means the images of silhouettes, fabric or color swatches, preliminary sketches and finished product images throughout the planning process. At the beginning of the process, only silhouettes or sketches may be available and then by the time the floor-set occurs, finished product images can be used. How these images are used is fully configurable so that you can tailor the visual planning capabilities to how you wish to view the assortment throughout the process. For more information regarding visual planning (supported image file types, how to set it up, and so on), see the Oracle Retail Predictive Application Server User Guide for the Fusion Client.

There are five key visual planning use cases in this release:

1. Images as column or row headers

Visual Planning

Introduction 1-15

Figure 1–7 Visual Planning Using Images as Column or Row Headers

2. Images as dimension attributes

Figure 1–8 Visual Planning Using Images as Dimension Attributes

3. Images as measures within the view

Visual Planning


Figure 1–9 Visual Planning Using Images as Measures

4. Image pop-up window

Figure 1–10 Visual Planning Using Images as Popup Window

Getting Started

Introduction 1-17

5. Time-phased visual view of the assortment

Figure 1–11 Visual Planning Using a Time-Phased View

Custom Menu OptionsSome steps of the Assortment Planning solution require certain custom menu options to be run. Custom menu buttons are located above the top right corner of the content area for some workbooks. Custom menus are specific to the views under the steps available in different tasks. Figure 1–12 shows an example of custom menu options.

Figure 1–12 Custom Menu Options

Procedures for using the custom menu options are provided, where applicable, throughout this guide.

Getting StartedBefore using Assortment Planning:

1. Review this User Guide, so that you understand the step-by-step assortment process.

2. Become familiar with the RPAS Fusion Client user interface. There are features you need to use in the Assortment Process such as sorting, filling, navigating the process steps, and loading/committing your work. If you need more information

Getting Started


on the user interface, see the latest Oracle Retail Predictive Application Server User Guide for the Fusion Client.

2

AP Maintenance 2-1

2AP Maintenance

AP maintenance is the first step in the AP business process. This process step includes the following tasks:

■ Assortment Setup Task

■ Define Size Profiles & Pack Task

■ Create PoC Targets Task

■ Look Maintenance Task

Assortment Setup TaskThe Planning Administrator performs periodic administrative steps that drive some of the critical parts of the Assortment Planning process. These steps include defining product or Point of Commerce attributes/priorities, assigning a sister store, defining space capacity and constraints, and so on. These measures could be loaded from an external source, if they are maintained elsewhere, rather than keying them into AP.

The Assortment Setup task has the following steps:

■ Step 1 - Set PoC Attributes

■ Step 2 - Set Strategy Weights

■ Step 3 - Set Product Attributes

Table 2–1 Business Roles in AP Maintenance

The Visual Merchant sets up fixtures and capacities (or loaded from an external source) in the Assortment Setup task.

The Central Sales Planner supports the planning process in the Assortment Setup task.

The Merchandise Planner creates the merchandise and location plans in the MFP & Loc Plan Target Maintenance task.

The Buyer Analyst aligns looks with the floor set calendar in the Look Maintenance task.

Assortment Setup Task


■ Step 4 - Customer Definition

■ Step 5 - Set Fixture Capacity

■ Step 6 - Adjust Inclusion Label

■ Step 7 - Adjust Decision Label

■ Step 8 - History Mapping

Create the Assortment Setup WorkbookTo create the Assortment Setup workbook, select the New Workbook icon in the Assortment Setup task.

Figure 2–1 Assortment Setup Task

The Assortment Setup workbook is built.

Step 1 - Set PoC AttributesIn the Set PoC Attributes step, the Planning Administrator defines site, application, and network attributes/values. The solution comes packaged with a number of attribute measures (such as Climate, Format, and so on), but more can be added as the attribute hierarchy is DPM enabled. This means that new attributes may be added by a designated user through the Fusion User Interface (UI) by using the Dynamic Position Maintenance option that is available on the right click menu, when the user clicks the PoC Attributes hierarchy.

This step has the following views:

■ Define PoC Attribute Values View

■ Assign PoC Attributes View

■ View PoC Open & Close Dates View


AP Maintenance 2-3

■ Define Store Space View

Define PoC Attribute Values ViewThe Define PoC Attribute Values view enables the Planning Administrator to define and maintain sets of values for store, site, application, and network attributes.

Figure 2–2 Define PoC Attribute Values View

Assign PoC Attributes ViewThe Assign PoC Attributes view enables the Planning Administrator to associate stores with the appropriate store attributes.

Figure 2–3 Assign PoC Attributes View

View PoC Open & Close Dates ViewThe store, site, application, and network closing and opening dates are defined and maintained in this view.



Figure 2–4 View PoC Open & Close Dates View

Define Store Space ViewIn this view, store space may be defined and maintained. It is used later in the Store Clustering workbook to group stores based on store capacity/constraints. While this view focuses on stores, this attribute may be used for sites, applications, and networks if needed.


AP Maintenance 2-5

Figure 2–5 Define Store Space View

Step 2 - Set Strategy WeightsThis step has one view.

Define Strategy Weights ViewIn this view, the strategies and weights by business outcome (sales in retail, gross margin in retail, and so on) used to define clusters are defined.



Figure 2–6 Define Strategy Weights View

Step 3 - Set Product AttributesIn this step, the Planning Administrator:

■ Defines and maintains product attribute options that will appear on the picklists that merchants use when assigning attributes to a new style or style-color. The solution comes packaged with a number of attribute measures (such as Brand, Color, and so on), but more can be added as the attribute hierarchy is DPM enabled. This means that new attributes may be added by a designated user using the Fusion UI. The Dynamic Position Maintenance option is available on the right click menu, when you click on the Product Attributes hierarchy.

■ Activates product attributes for an aggregate intersection of the product hierarchy. For example, only the handbag attributes should be activated for the handbag classes. By activating them, only the handbag merchants, and so on, see them. This helps to reduce clutter in the workbooks and so on.

■ Builds color runs for use in the Shopping List process. At this stage, the merchant likely does not know the colors carried for a style, but will likely know whether they wish to carry it in basic, trend, or classic colors. A color run is just a set of color families to be carried for the style (such as black, white and grey or green, purple and orange, and so on).

■ Sets price tiers by defining what price is a high, medium, low or good, better and best. These are used later to assign a price tier attribute to styles and style-colors based on their planned price.

This step has the following tabs and views:

■ Set Picklist Options Tab:

– Define Product Attributes Values View

■ Activate Attributes Tab:

– Determine Attribute Eligibility View

■ Assign Color Runs Tab:


AP Maintenance 2-7

– Define Colors View

– Define Basic Color Runs View

– Define Seasonal/Trend Color Runs View

■ Set Price Tiers Tab:

– Define Price Tiers View

Set Picklist Options TabThe Planning Administrator defines and maintains product attribute options that will appear on the picklists that merchants use when assigning attributes to a new style or style-color. The solution comes packaged with a number of attribute measures (such as Brand, Color, and so on), but more can be added as the attribute hierarchy is DPM enabled. This means that new attributes may be added by a designated user using the Fusion UI. The Dynamic Position Maintenance option is available on the right click menu, when you click on the Product Attributes hierarchy.

Define Product Attributes Values View This is the only view on this tab.

Figure 2–7 Define Product Attributes Values View

The Planning Administrator defines Price Tiers as Product Attribute Values in this view. The values for these Price Tiers are specified in the Set Price Tiers view. In Figure 2–8 four Price Tiers are defined: Good, Better, Best, and Awesome.



Figure 2–8 Define Product Attributes Values View - Price Tier

Activate Attributes TabThe Planning Administrator activates product attributes for an aggregate intersection of the product hierarchy. For example, only the handbag attributes should be activated for the handbag classes. By activating them, only the handbag merchants can see them. This helps to reduce clutter in the workbooks.

Determine Attribute Eligibility View This is the only view on this tab.

Note: The sequence of Price Tier values should be entered or loaded in ascending order, from lowest price tier to highest price tier.

For example, if four price tiers values are being planned: Good, Better, Best, and Awesome, the lowest price tier, Good, should be entered first followed by Better, Best, and Awesome. The price tiers should not be entered or loaded as Awesome, Best, Better, Good, or any other order that is not ascending.


AP Maintenance 2-9

Figure 2–9 Determine Attribute Eligibility View

Assign Color Runs TabThe Planning Administrator builds color runs for use in the Shopping List process. At this stage, the merchant likely does not know the colors carried for a style, but will likely know whether they wish to carry it in basic, trend, or classic colors. A color run is just a set of color families to be carried for the style (such as black, white and grey or green, purple and orange, and so on).

Define Colors View In this view, the Planning Administrator defines the color values. New colors are added using Dynamic Position Maintenance (DPM) in this view.

Note: Price Tier is a mandatory Product Attribute. In this view, if the user does not manually set the Attribute Eligibility to true for Price Tier, it will be set to true for all subclasses during the commit process of this workbook.



Figure 2–10 Define Colors View

Define Basic Color Runs View The basic color runs are defined and maintained in this view and used in the Create Shopping List task.

Figure 2–11 Define Basic Color Runs View


AP Maintenance 2-11

Define Seasonal/Trend Color Runs View The seasonal/trend color runs are defined and maintained in this tab and used in the Create Shopping List task.

Figure 2–12 Define Seasonal/Trend Color Runs View

Set Price Tiers TabThere is only one view on this tab.

Define Price Tiers View The Planning Administrator sets the price tiers labels and boundaries in this view for each subclass. The labels allow the Administrator to define the names for the price tiers. The labels were set in the previous view, Set Picklist Options. The lower boundary measure is defined as zero (0) for the lowest tier, the Good tier. The lowest boundary of other tiers is copied from the upper boundary plus .01 of the previous tier. This measure is read only and prevents overlaps between boundaries. The upper boundary measure is the upper limit for each price tier for each subclass. It is recommended to set the highest price tier upper boundary to a value high enough to classify all items in that tier. Any items that have a price tier higher than this should be classified under the next highest price tier. The price tier upper and lower boundaries are used later to classify styles and style-colors by price tiers based on their planned price.

In Figure 2–13, the upper and lower boundaries are set for the four Price Tiers defined in the Define Product Attribute Values view. See Figure 2–8.

Figure 2–13 Define Price Tiers View



Step 4 - Customer DefinitionIn this step, the Planning Administrator views loaded data or specifies the product attributes that define each customer segment. These attributes are used to assign each style to one or more customer segments when evaluating whether the assortment is appropriate for each segment.

Define Customer Attributes ViewThis is the only view in this step.

Figure 2–14 Define Customer Attributes View

Step 5 - Set Fixture CapacityIn this step, the Planning Administrator views or defines fixture dimensions, max/min units, and options per fixture. This information is used to determine the number of style-colors based on capacity in the Create Shopping List and Build the Wedge tasks.

These capacities can be set for sites, applications, and networks, not just for stores. For example, a catalog may have a fixed page count or a micro-app may be focused on a time-pressed shopper. The retailer may decide that only 50 styles should be made available to avoid having to spend lots of time scrolling and to save the shopper time by focusing on just the best options for the target of the micro-app.

Define Space Capacity & Constraints ViewThis is the only view in this step.


AP Maintenance 2-13

Figure 2–15 Define Space Capacity & Constraints View

Step 6 - Adjust Inclusion LabelThis step enables the Administrator to adjust the labels for the style-color inclusion status measure used in the Wedge Population Automation function in the Build the Wedge process. The default options are: Must Include, Must Not Include, and Optional. Any character choices may be entered.

Define Inclusion Status ViewThis is the only view in this step.



Figure 2–16 Define Inclusion Status Values View

Step 7 - Adjust Decision LabelIn this step, the Planning Administrator defines and maintains the list of possible Decision values from which a merchant selects in the Keep/Markdown/Drop process in the Weekly Analysis step of the task flow.

The solution comes packaged with a number of attribute measures (such as Brand, Color, and so on), but more can be added as the attribute hierarchy is DPM enabled. This means that new attributes may be added by a designated user using the Fusion UI. The Dynamic Position Maintenance option is available on the right click menu, when you click on the Product Attributes hierarchy.

Define Decision Values ViewThis is the only view in this step.


AP Maintenance 2-15

Figure 2–17 Define Decision Values View

Step 8 - History MappingIn this step, the Planning Administrator maps the history week to the weeks being planned.

In the Assortment Planning solution, actual values are loaded into the Working Plan (WP) version for elapsed time-frames and Last Year (LY) versions are derived using the WP version and a specified lag. Typically, this is performed by a standard lag of 52 weeks. Sometimes, there is the need to accommodate 53-week years or to shift weeks due to seasonality.

When setting History Mapping, the Planning Administrator enters values for the year they want to map to, not the year they are mapping from. For example, if the Administrator wanted to set the LY mapping for 2014, the Administrator should enter values for 2013, because those are the weeks being mapped to for 2014 LY. The Administrator should not map weeks that are not yet in the calendar master file, otherwise, an error occurs upon the workbook builds.

Three types of History Mapping can be entered:

■ One-to-One Week Mapping: Last Year lagged measures for 2013 will point to the same week number in 2014. This is used when This Year and Last Year are both 52-week years. In other words, 201452 (week 52 of 2014) map back to 201352 (week 52 of 2013).

■ One-to-Many: Last Year lagged measures for weeks 52 and 53 in 2017 are both mapped to Week 52 in 2016. This is used when the year you are mapping from (2017) has 53 weeks, but the year you are mapping to has 52. Note that the date entries should be separated by a space. In other words, 201752, 201753 (week 52 and 53 of 2017) map back to 201652 (week 52 of 2016).

■ Many-to-One Week Mapping: Last Year lagged measures for week 52 in 2018 points to the sum of values for weeks 52 and 53 in 2017 (weeks 4 and 5 of month 12). This is used when the year you are mapping to (2017) has 53 weeks, but the year you are mapping from (2018) has 52. In other words, 201852 (week 52 of 2017) maps back to 201752 and 201753 (week 52 and week 53 of 2017).

History Mapping ViewHistory mapping is completed in this view. History mapping is used for LY measures, to map the history week to the weeks being planned. It is required to be able to view Last Year values and plan for events that fall on different dates in different years.

Define Size Profiles & Pack Task


Figure 2–18 History Mapping View

Define Size Profiles & Pack TaskOnce the style and style-color assortment has been determined, the merchant/trader determines the sizes in which each style or style-color will be carried and the prepacks in which it will be allocated. The size and prepack assignments can be typically interfaced from an external system, such as the Oracle Retail Size Profile Optimization (SPO) solution. However, not every retailer has such a solution. In that case, the merchant can assign the sizes and packs by style or style-color in AP.

This task enables a designated Administrator to create the pool of sizes and prepacks from which the merchant selects when assigning sizes and prepacks to a style or style-color. The pool can be loaded from an external solution and just reviewed here as well.

This task has the following steps:

■ Step 1 - Define Size Profiles

■ Step 2 - Define Prepacks

Define Size Profiles & Pack WorkbookTo create the Define Size Profiles & Pack workbook:

1. Select the New Workbook icon in the Define Size Profiles & Pack task.


AP Maintenance 2-17

Figure 2–19 Define Size Profiles & Pack Task

The workbook wizard opens.

2. In the Select Product(s) page, select the subclasses for which size profiles and prepack definitions are to be defined. Click Finish.

Figure 2–20 Workbook Wizard Select Product(s) Page

The workbook is created.

Step 1 - Define Size ProfilesIn this step, the designated Administrator defines and manages the pool of Size Profiles from which the merchant will later select. This information is typically interfaced from an external system, such as SPO, but may also be entered or edited manually when a SPO solution is not being used.

Define Size Profiles ViewThis is the only view in this step.



Figure 2–21 Define Size Profiles View

Step 2 - Define PrepacksIn this step, the designated Administrator defines and manages the pool of Prepack Profiles from which the merchant will later select. This information is typically interfaced from an external system, such as SPO, but may also be entered or edited manually when a SPO solution is not being used.

Define Prepacks ViewThis is the only view in this step.

Figure 2–22 Define Prepacks View

Create PoC Targets Task

AP Maintenance 2-19

Create PoC Targets TaskIn this task, the Merchant, Planner, or designated Administrator creates (if it cannot be loaded from another source) simple store/site/application/network level (PoC) targets for the sales, margin, receipts, and returns plan at the Week/Subclass/Store.

The targets are used to calculate the number of style-colors for the shopping list and wedge, for reconciliation throughout the Assortment Planning process, and to spread the Buying Plan at the cluster to the Point of Commerce level, taking into consideration the performance of each PoC and distribution of sales and receipts across each one.

Merchandise Financial Plan (MFP) and Location Plan (LP) targets can be interfaced from an external system. In this task, if a Location Plan solution at this level is unavailable, last year can be used to spread the Merchandise Financial Plan down to the Week/Subclass/Store level. Then, the plan will be rolled up to the Week/Subclass/Cluster level once the clusters are created.


■ Step 1 - Review MFP Targets

■ Step 2 - Set PoC Targets

■ Step 3 - Review PoC Targets

Build the Create PoC Targets WorkbookTo build the Create PoC Targets workbook:

1. Select the New Workbook icon in the Create PoC Targets task.

Figure 2–23 Create PoC Targets Task


2. In the Select Product(s) page, select the merchandise levels for the MFP targets to be reviewed or maintained. Click Next.




3. In the Select Period(s) page, select the time periods for examination. Click Finish.

Figure 2–25 Workbook Wizard Select Period(s) Page


Step 1 - Review MFP TargetsIn this step, the merchant/trader can review the MFP targets, which may be used as a source for initializing the PoC level targets. The targets include Sales Retail, Sales Units, Gross Margin Retail, and Gross Margin %. If an MFP or Loc Plan solution is not being used, Last Year values can be used to spread the MFP plan to the Week, Subclass, and PoC Level.


AP Maintenance 2-21

Review MFP Targets ViewThis is the only view in this step.

Figure 2–26 Review MFP Targets View

Step 2 - Set PoC TargetsIn this step, the merchant/trader selects a source calculating the targets and then runs the Custom Menu that creates them. There are several source options. You can use Last Year or MFP spread to store based on LY or copy from a Sister Subclass. All of these options can vary by any dimension of the Point of Commerce hierarchy (for example, mobile commerce can have one approach and stores in California another).

Custom Menu OptionThis step has one custom menu option.

Set PoC TargetsThis custom menu option uses your selections to calculate PoC level targets. MFP is assumed to be at the subclass level.

To run the custom menu option:

1. Select one of the following Boolean measure settings:

■ Set PoC CP with LY

■ Set PoC CP with MFP CP

2. For new store and new subclass, select Sister Store and Sister Subclass.

3. For new store and existing subclass, select Sister Store only.

4. Access the Custom Menu Option and select Set Location Plan Targets.



Set PoC Targets ViewThis is the only view in this step.

Figure 2–27 Set PoC Targets View

Additional Detail ■ If Set PoC CP with LY is selected, the custom menu option sets the PoC CP plan with LY plan at subclass/week/store.

PoC CP Sls U* (sclss/str/wk)= LY Sls U (skup/str/wk)

■ If Set PoC CP with MFP is selected, the custom menu option evenly spreads the MFP plan to set the PoC CP plan at sub-class/week/store.

PoC CP Sls U* (sclss/str/wk)= MFP CP Sls U (sclss/chnl/wk)

■ If Set PoC CP with LY and Set PoC CP with MFP are selected, the custom menu option first copies the profile of the PoC CP plan according to the LY plan at subclass/week/store. Then, PoC CP to MFP is set according to the LY Plan.

PoC CP Sls U* (sclss/str/wk)= LY Sls U (skup/str/wk)

PoC CP Sls U* (sclss/str/wk)= MFP CP Sls U (sclss/chnl/wk)

* In the preceding list, Sls U is used as an example. The PoC measures get updated are shown in the following table.

■ If Sister Store and Sister Subclass are selected, copy from Sister Store first, and then copy Sister Subclass.

■ If Sister Store is selected and Sister Subclass is not, assume the same Subclass is used.

■ If Sister Store is not selected and Sister Subclass is, alert that Sister Store Sister Store is not selected.

After the custom menu option is executed, the following message appears: Set Loc Plan Targets is Successful.

Look Maintenance Task

AP Maintenance 2-23

Step 3 - Review PoC TargetsIn this step, the Planner can review the results of spreading the Merchandise Financial Plan down to the Point of Commerce level.

Review PoC Targets ViewThis is the only view in this step.

Figure 2–28 Review PoC Targets View

Look Maintenance TaskThe merchant in the Look Maintenance task performs periodic steps that drive some of the critical parts of the Assortment Planning process. These steps include defining the Look Groups and Looks and assigning the subclasses, sales/margin weights used in clustering and product attribute targets (if desired). All of this data can be loaded from an external source such as a Floor Set calendar, and so on.

The Look Maintenance task has the following steps:

■ Step 1 - Create Look(s)

■ Step 2 - Assign Subclass(es)

■ Step 3 - Assign Strategies

■ Step 4 - Seed/Set Look Goals

Create the Look Maintenance WorkbookTo create the Look Maintenance workbook:

1. Select the New Workbook icon in the Look Maintenance task.



Figure 2–29 Look Maintenance Task


2. In the Select Look Group(s) page, select the Look Groups to be reviewed or maintained. Click Finish.

Figure 2–30 Workbook Wizard Select Look Group(s) Page


Custom Menu OptionThis custom menu option is available in all steps and views of this workbook.

Commit PlanThis custom menu option commits the Look Maintenance workbook.


AP Maintenance 2-25

To run the custom menu option, access the custom menu option and select Commit Plan.

The following table lists the updated measures:

Step 1 - Create Look(s)In this view, the Merchant/Trader defines all the pertinent aspects of a Look Group and its Looks and may review Looks using a visual representation of the Calendar hierarchy.


Menu Item Commit Plan

Steps Define Look

Assign Subclass

Assign Strategy / Intent

Seed/Set Look Goals

Trigger Measures NA

Trigger Condition NA

Additional Detail If any of the following alerts have been triggered, the user is unable to commit the workbook until the associated errors have been resolved:

■ Assign Subclass Alert

■ Look Duration

■ Look Start

■ Prior Look Alert

■ Sister Look Alert

When the Commit Look Maintenance custom menu option is selected, the workbook is committed at that time.

Updated Measure Source Notes

Look Description NA In Define Look

Look Start Date NA In Define Look

Look End Date NA In Define Look

Look Duration (Days) NA In Define Look

Prior Look NA In Define Look

Sister Look NA In Define Look

Look / Subclass Assignment

NA In Assign Subclass

Strategy / Intent NA In Define Strategy / Intent Weights

% of Style-Colors Sister Look % of Style-Colors Seeded at look/attribute level

Normalized to 100%

In Seed From Sister Look

TGT % of Style-Colors Sis Lk Tgt % of Style-Colors Normalized to 100%

In Determine Attribute Mix, Determine Color Mix



■ Define Look(s) View

■ Look Calendar View

For information on the available custom menu option, see "Commit Plan" for this task.

Define Look(s) ViewIn this view, the Look Groups and Looks are created/maintained.

Figure 2–31 Define Look(s) View

Look Calendar ViewThis view provides a user-friendly way to view successive Look and Look Groups to ensure they are set up correctly.


AP Maintenance 2-27

Figure 2–32 Look Calendar View

Step 2 - Assign Subclass(es)In this step, the merchant/trader defines and maintains subclass/look assignments.


■ Assign Subclass(es) View

■ Look/Subclass Calendar View

Custom Menu OptionThis step has one custom menu option. For information on the available custom menu option, see "Commit Plan" for this task. This custom menu option is available in the Assign Subclass and Look/Subclass Calendar views.

Assign Subclass(es) ViewIn this view, the Merchant/Trader uses check boxes to indicate the subclasses that should be assigned to the Look. The subclasses can be assigned to multiple Looks as long as the Looks are not running in parallel. In another words, the Looks that contain the same subclasses cannot have overlapping start and end dates.



Figure 2–33 Assign Subclass(es) View

Look/Subclass Calendar ViewIn this view, looks and their associated subclasses may be viewed along the Calendar hierarchy. This provides a user-friendly way to view successive Look Groups or Looks/Subclasses or to spot any gaps between Looks/Subclasses.

Figure 2–34 Look/Subclass Calendar View


AP Maintenance 2-29

Step 3 - Assign StrategiesIn this step, the merchant/trader designates the Strategy/Intent for each Look for use in clustering Points-of-Commerce into clusters and cluster parents. Each Strategy/Intent is defined and maintained in the Define Strategy/Intent Weights step of the Assortment Setup task.

Custom Menu OptionThis step has one custom menu option. For information on the available custom menu option, see "Commit Plan" for this task. This custom menu option is available in the Assign Strategy/Intent views.

Assign Strategies ViewThis is the only view in this step.

Figure 2–35 Assign Strategies View

Step 4 - Seed/Set Look GoalsIn this step, the Assortment Mix Targets by Product Attribute and/or Color can be determined (this step is optional) by specifying the percentage of Style-Colors by product attribute and color or by loading from an external source. These targets can be used throughout the assortment process to determine whether the assortment has the right mix of product attributes and colors, and so on. These will be shared with the Shopping List where they can be edited and then from the Shopping List spread to each cluster where again they can be edited. Once edited in the Wedge (if desired), they can be used by the Wedge Population Automation to recommend assortment decisions by Wedge (intersection of Cluster and Look).


■ Seed from Sister Look View

■ Determine Assortment Mix View



■ Determine Color Mix View

Custom Menu OptionsIn addition to the Commit Plan custom menu, this step also has the following custom menus:

Seed Sister Look This custom menu option copies the percentage of style-colors and attribute priorities from the Sister Look to the look that the merchant/trader is planning.

The merchant/trader should first specify the Sister Look in the Define Look view, and then run the custom menu option to copy the measures previously mentioned.

To run this custom menu option:

1. In the Define Look view, specify Sister Look from a pick list of Looks in the Assortment hierarchy for the same channel.

2. In the Determine Assortment Mix view, select the Boolean Seed from Sister Look at the Look and Channel level measures.

3. Access the custom menu option and select the Seed from Sister Look measure.

The following table lists the updated measure:

This custom menu option is available in the Seed from Sister Look view.

Commit Look Maintenance For information on this custom menu option, see "Commit Plan" for this task. This custom menu option is available in the Seed from Sister Look, Determine Assortment Mix, and Determine Color Mix views.

Menu Item Seed from Sister Look

Views Determine Assortment Mix

Attribute Priority

Trigger Measures Sister Look (Look/Channel)

Seed from Sister Look (Look/Channel)

Trigger Conditions The Sister Look measure is selected from a pick list of looks in the Assortment hierarchy at the Look and Channel level in the Define Look view.

The Boolean Seed from Sister Look measure is checked at the Look and Channel level.

Additional Detail When the Commit Look Maintenance custom menu option is selected, the workbook is committed at that time.

After the Custom Menu Option is run, the following message appears: Seed from Sister Look executed.

The Boolean Seed from Sister Look measure should be unchecked after the custom menu is run.


% of Style-Colors Sister Look % of Style-Colors Seeded at look/attribute level

Normalized to 100%

In Seed From Sister Look


AP Maintenance 2-31

Seed from Sister Look ViewIn this view, the merchant/trader selects which Looks should inherit values for % of Style-Colors and Attribute Priority from a Sister Look specified in the Define Look step. If the Seed from Sister Look custom menu is run without checking the Seed from Sister Look measure for at least one look/channel, a real-time alert is generated that notifies the user that this selection must be made.

Figure 2–36 Seed from Sister Look View

Determine Assortment Mix ViewIn this view, the assortment mix is determined by specifying the % of Style-Colors by product attribute.



Figure 2–37 Determine Assortment Mix View

Determine Color Mix ViewIn this view, the color mix is determined by specifying the % of Style-Colors by color.

Figure 2–38 Determine Color Mix View

3

Lifecycle Curves Task 3-1

3Lifecycle Curves Task

Lifecycle curve maintenance is the second step in the AP business process. This process step includes the following task:

■ Lifecycle Curves Task

Lifecycle Curves TaskThe Central Sales Planner defines a library of lifecycle curves in this task, or reviews them if they were loaded externally. These curves are used to generate the weekly sales plan for each style-color in the Buying Plan task.

This task has the following step:

■ Step 1 - Set Curve Profiles

Create the Lifecycle Curves WorkbookTo create the Lifecycle Curves workbook:

1. Select the New Workbook icon in the Lifecycle Curves task.

Figure 3–1 Lifecycle Curves Task

Table 3–1 Business Role in Lifecycle Curve Profile Maintenance

The Central Sales Planner maintains the curves.

Step 1 - Set Curve Profiles



2. In the Select Product(s) page, select the products for which lifecycle curves are to be assessed. The lowest dimension is Subclass. Click Finish.



Step 1 - Set Curve ProfilesIn this step, the Central Sales Planner defines a library of lifecycle curves for each subclass. The Central Sales Planner specifies a Sales Curve Label and Sales Curve % for each profile. The Sales Curve percentages are normalized to ensure the total adds up to 100.

The number of Curve Library profiles is initially determined in the hierarchy load, but the Curve Library hierarchy is Dynamic Position Maintenance (DPM) enabled and the merchant/trader may add positions as necessary.

These curves are later used to generate the weekly sales plan for each style-color in the Buying Plan creation task.


■ Define Curve Labels View

■ Define Curve Profiles View

Define Curve Labels ViewThe Central Sales Planner defines and maintains the lifecycle curve labels in this view.

Define Curve Profiles ViewThe Central Sales Planner defines and maintains the lifecycle curve profiles in this view.

You can create a copy of this view and show it as a chart as shown in the following figure.


Lifecycle Curves Task 3-3

Figure 3–3 Define Curve Labels and Define Curve Profiles Views



4

Clustering 4-1

4 Clustering

Clustering is the final step in the AP business process.

Clustering TaskClustering is a business process where the merchant classifies the (store, site, application, and network) PoC base into multiple groups of PoCs that are similar in performance, space, or other attributes. Each cluster contains similar PoCs according to the criteria chosen by the merchant/trader. All PoCs within a cluster receive an identical assortment.

Types of ClusteringThere are two types of clustering.

■ Basic Clustering

Basic Clustering enables the merchant/trader to create clusters within the solution without having to depend on external systems. With Basic Clustering, PoCs are clustered using either the Breakpoint or BaNG algorithm. For the Breakpoint algorithm, the merchant/trader uses sales and margin performance to group high-level clusters (cluster parent) and one or two PoC attributes to further define the lower level clusters. The merchant/trader reviews the cluster versions in the Look Maintenance task and assigns a cluster version to a look.

Batch Neural Gas (BaNG) Algorithm

The BaNG algorithm automatically generates optimal clusters based on user-specified number of clusters and clustering criteria. The algorithm provides a means for clustering data based on data distributions. For example, while clustering on weekly PoC sales data, the BaNG algorithm considers the Euclidean distance of the individual PoC/week level data points from a cluster center to determine the clusters. This is different from the Breakpoint method, where clustering is performed based on average sales.

The BaNG algorithm iteratively updates cluster centers while considering the distance of each data vector from the cluster centers and its contribution to each

Table 4–1 Business Role in Cluster Maintenance

The Buyer Analyst builds and updates clusters in the Clustering task.

Clustering Task


cluster center. For every data point, cluster centers are ranked based on their distance from the data point within each iteration.

Additionally, the cluster centers are guided, using a control parameter, to gradually spread from the center of the distribution to their optimal locations.

The BaNG algorithm is a non-trivial extension of the K-means clustering approach. It is usually faster than the K-means, and is guaranteed to converge.

BaNG vs Breakpoint

The BaNG algorithm generates statistically optimal clusters based on the number of clusters specified by the user. Breakpoint generates clusters based on user input breakpoints, and the number of clusters generated depends on the breakpoints.

In order to generate PoC clusters that vary by Dept, users need to specify a group by option of Dept. Breakpoint clusters PoCs based on average PoC sales within each Dept, while BaNG can consider an additional dimension for generating the clusters. For example, BaNG can cluster based on weekly sales of each PoCs within the Dept. Here, weekly sales are the coordinates over which the clustering is performed.

■ Advanced Clustering

If Advanced PoC Clustering is being used, the clusters are interfaced and imported into the Assortment Planning solution (potentially from the Oracle Retail Advanced Clustering solution). There is no need for the Basic Clustering workbook configured for this task. The merchant/trader is still able to review the cluster versions in the Look Maintenance task and assign a cluster version to a look.

Basic Clustering has the following steps:

■ Step 1 - Set Performance Goals

■ Step 2 - Define Clusters

■ Step 3 - Review Clusters

■ Step 4 - Approve

Create the Clustering WorkbookTo create the Clustering workbook:

1. Select the New Workbook icon in the Clustering task.

Clustering Task

Clustering 4-3

Figure 4–1 Clustering Task


2. In the Select Look Group page, select one Look Group for which the clusters are to be created or maintained. Click Next.

Figure 4–2 Workbook Wizard Select Look Group Page

3. In the Select Source for Perf Clustering page, select a cluster source for assessment. Click Next.

Clustering Task


Figure 4–3 Workbook Wizard Select Source for Perf Clustering Page

4. In the Select Time Periods for Source page, select the weeks for which the clusters are to be created or maintained. Click Next.

Figure 4–4 Workbook Wizard Select Time Periods for Source Page

5. In the Select PoC Channel page, select one channel in which the clusters are to be created or maintained. Click Finish.

Clustering Task

Clustering 4-5

Figure 4–5 Workbook Wizard Select PoC Channel Page


Custom Menu OptionThere is one custom menu available for this step.

Seed WP with CPIn this custom menu, you can copy the Current Plan (CP) version of the clustering weights and attribute measure to the Working Plan (WP) version of the same measures. You would do this, when you have been testing some other options and decide to revert back to the last approved version of the measures.

To run the custom menu option, access the Custom Menu Option and select Seed with WP with CP.


Menu Item Seed WP with CP

Views ■ Set Performance Goals

■ Define Clusters

Trigger Measures NA


Additional Detail NA


WP Weight Sales R CP Weight Sales R In Set Perf Clustering Criteria, PoC Analysis, Cluster Results

Clustering Task


Step 1 - Set Performance GoalsThis step has the following views:

■ Review/Set Weights View

■ Select Cluster Attributes View

Custom Menu OptionsThis step has the following custom menu options:

Seed WP with CPFor information on this custom menu option, see Seed WP with CP for this task.

This custom menu option is available in the Review/Set Weights and Select Cluster Attributes views.

Review/Set Weights ViewThe Set and Review Weights view enables the Buyer Analyst to perform the following, as applicable to performance clustering (not space clustering):

■ View the strategy/intent results defined in the Setup task and the resultant weights for each of the performance measures.

■ Override the weights assigned in order to change the performance weights used to calculate the Combined Performance Index to Average.

The weight of metrics might vary for a given class for different buying periods to give the planner flexibility in determining the clusters for each buying period.

This view defaults the strategy/intent defined for the Brick and Mortar channel for the selected buying period and the related weights. The planner is able to edit the weights for any and all of the metrics provided; however, strategy/intent may not be edited on this view.

WP Weight Sales U CP Weight Sales U In Set Perf Clustering Criteria, PoC Analysis, Cluster Results

WP Weight Sales AUR CP Weight Sales AUR In Set Perf Clustering Criteria, PoC Analysis, Cluster Results

WP Weight Gross Margin R

CP Weight Gross Margin R In Set Perf Clustering Criteria, PoC Analysis, Cluster Results

WP Weight Gross Margin %

CP Weight Gross Margin % In Set Perf Clustering Criteria, PoC Analysis, Cluster Results

Note: The total sum of the weights assigned to all the metrics should be 100%; if the weights do not sum to be 100%, they are re-normalized upon the next commit and refresh.


Clustering Task

Clustering 4-7

The planner can override the weights on this view in order to influence the PoC clustering for this assortment. Making overrides only applies to this assortment and does not impact the default weights assigned to this strategy or the class.

Figure 4–6 Review/Set Weights View

Select Cluster Attributes ViewThis view enables the Buyer Analyst to select additional PoC attributes that can be further broken down by performance group. A maximum of two attributes can be chosen in addition to performance. These attributes are selected in the WP PoC Attribute measures.

Figure 4–7 Select Cluster Attributes View

Step 2 - Define ClustersIn this step, you create the clusters.


■ Define Performance Clusters View

■ Define Space Clusters View

Clustering Task


■ PoC Analysis View

Custom Menu OptionThis step has the following custom menus:

Seed WP with CPFor information on this custom menu option, see Seed WP with CP for this task.

This custom menu option is available in the Define Perf Clusters, Define Space Clusters, and PoC Perf Analysis views.

Define Performance Clusters ViewIn this view, the Buyer Analyst can choose:

■ The algorithm used for performance grading. The default algorithm is Breakpoint, but you can select a check box to switch to using the BaNG algorithm.

■ The number of performance-based cluster parents (A, B, C, D, and E) to be created. The maximum is five.

■ The label for each Cluster Parent (A through Z).

■ The uppermost performance breakpoint for Cluster Parents A through E.

Figure 4–8 Define Performance Clusters View

Define Space Clusters ViewIn this view, if using space rather than performance-based clusters, the Buyer Analyst can choose:

■ The algorithm used for space grading. The default algorithm is Breakpoint, but you can select a check box to switch to using the BaNG algorithm.

■ The number of space-based cluster parents (A, B, C, D, and E) to be created. The maximum is five.

■ The label for each Cluster Parent (A through Z).

■ The uppermost performance breakpoint for Cluster Parents A through E.

Note: When clustering for Direct Channel, the cluster parents' name will be labeled as AE, BE, CE, DE, and EE. The images for Direct cluster parents will still show as A, B, C, D, and E.

Clustering Task

Clustering 4-9

Figure 4–9 Define Space Clusters View

PoC Analysis ViewThis view enables the Buyer Analyst to perform performance analysis and cluster assignment.

Performance AnalysisIn this view, you can see the following:

■ The actual performance of each PoC in the source data period as a list of metrics.

■ The Index to Average for each performance metric, Combined Index-to-Average, and Space-Index-to-Average.

■ The performance group and space cluster in which each PoC would fall, based on the algorithm and additional attributes selected on previous views.

Cluster AssignmentThis view enables the Buyer Analyst to view performance classification for each of the algorithms per PoC.

The Buyer Analyst may manually assign a specific performance cluster or space cluster for any individual PoC. For example, a PoC that fell in the B-Grade may be assigned to A-Grade if the Buyer Analyst desires.

Clustering Task


Figure 4–10 PoC Analysis View

Step 3 - Review ClustersThis step enables the Buyer Analyst to analyze the clusters created in the previous steps.

This step has one view.

Cluster Results ViewThis view enables the Buyer Analyst to analyze the clusters created in previous views. It displays the WP performance measures based on the source used for clustering: actual history, forecast, or location plan. This view also serves to indicate how the clustering then impacts the Assortment Plan.

The Cluster Results view is read-only, although metrics may be rolled up at the cluster level to ensure that the clustering is aligned with the higher level plans. Note that dimension splitting can be used on this view to analyze the clusters based on any of the PoC attributes.

Clustering Task

Clustering 4-11

Figure 4–11 Cluster Results View

Step 4 - ApproveThis step enables the Buyer Analyst to approve the clusters created in the previous steps.

This step has one view.

Custom Menu OptionThis step has one menu option.

Approve Clusters After the Planner generates the cluster parents and clusters, the cluster version can be approved to the CP version by executing the custom menu option:

■ This marks all the PoC clusters as approved by populating the CP versions of measures with WP values.

■ The CP version is exported to external systems.

To run the custom menu option, access the Custom Menu Option and select Seed with CP.


Menu Item Approve Clusters

View Approve Clusters

Trigger Measures NA


Additional Detail When the Approve PoC Clusters custom menu option is selected, the workbook is committed at that time.

Clustering Task



CP Weight Sales R WP Weight Sales R In Approve Clusters

CP Weight Sales U WP Weight Sales U In Approve Clusters

CP Weight Sales AUR WP Weight Sales AUR In Approve Clusters

CP Weight Gross Margin R WP Weight Gross Margin R In Approve Clusters

CP Weight Gross Margin %

WP Weight Gross Margin % In Approve Clusters

CP PoC Attribute 1 WP PoC Attribute 1 In Approve Clusters

CP PoC Attribute 2 WP PoC Attribute 2 In Approve Clusters

CP Use Bang! Algorithm WP Use Bang! Algorithm In Approve Clusters

CP Nbr of Perf Groups WP Nbr of Perf Groups In Approve Clusters

CP Perf Group Label WP Perf Group Label In Approve Clusters

CP Perf Breakpoint Upper Bndry

WP Perf Breakpoint Upper Bndry

In Approve Clusters

CP Perf Breakpoint Lower Bndry

WP Perf Breakpoint Lower Bndry

In Approve Clusters

CP PoC Count (Perf) WP PoC Count (Perf) In Approve Clusters

CP Nbr of Space Groups WP Nbr of Space Groups In Approve Clusters

CP Space Group Label WP Space Group Label In Approve Clusters

CP Space Breakpoint Upper Bndry

WP Space Breakpoint Upper Bndry

In Approve Clusters

CP Space Breakpoint Lower Bndry

WP Space Breakpoint Lower Bndry

In Approve Clusters

CP PoC Count (Space) WP PoC Count (Space) In Approve Clusters

CP Sales R WP Sales R In Approve Clusters

CP Sales U WP Sales U In Approve Clusters

CP Sales AUR WP Sales AUR In Approve Clusters

CP Gross Margin R WP Gross Margin R In Approve Clusters

CP Gross Margin % WP Gross Margin % In Approve Clusters

CP Combined Index to Avg

WP Combined Index to Avg In Approve Clusters

CP Perf Group (Breakpoint)

WP Perf Group (Breakpoint) In Approve Clusters

CP Perf Group (Bang!) WP Perf Group (Bang!) In Approve Clusters

CP Adj Perf Group WP Adj Perf Group In Approve Clusters

CP PoC Space U WP PoC Space U In Approve Clusters

CP Space Index to Avg WP Space Index to Avg In Approve Clusters

CP Space Group (Breakpoint)

WP Space Group (Breakpoint)

In Approve Clusters

CP Space Group (Bang!) WP Space Group (Bang!) In Approve Clusters

CP Adj Space Group WP Adj Space Group In Approve Clusters

Clustering Task

Clustering 4-13

Approve Clusters ViewThis view enables the Buyer Analyst to approve the clusters created in previous views and include any notes for future reference.

CP Cluster Label WP Cluster Label In Approve Clusters

CP Gross Margin Index to Avg %

WP Gross Margin Index to Avg %

In Approve Clusters

CP Gross Margin Index to Avg R

WP Gross Margin Index to Avg R

In Approve Clusters

CP Sales Index to Avg AUR

WP Sales Index to Avg AUR In Approve Clusters

CP Sales Index to Avg R WP Sales Index to Avg R In Approve Clusters

CP Sales Index to Avg U WP Sales Index to Avg U In Approve Clusters

CP Seed from Sister PoC(s) WP Seed from Sister PoC(s) In Approve Clusters

CP Sister PoC 1 WP Sister PoC 1 In Approve Clusters

CP Sister PoC 1 Weight % WP Sister PoC 1 Weight % In Approve Clusters





CP Volume Adjustment % WP Volume Adjustment % In Approve Clusters

CP PoC Count WP PoC Count In Approve Clusters

CP Sales R WP Sales R In Approve Clusters

CP Sales U WP Sales U In Approve Clusters

CP Sales AUR WP Sales AUR In Approve Clusters

CP Gross Margin R WP Gross Margin R In Approve Clusters

CP Gross Margin % WP Gross Margin % In Approve Clusters

CP APS Sales R WP APS Sales R In Approve Clusters

CP APS Sales U WP APS Sales U In Approve Clusters

CP APS Gross Margin R WP APS Gross Margin R In Approve Clusters

CP APS Gross Margin % WP APS Gross Margin % In Approve Clusters


Clustering Task


Figure 4–12 Approve Clusters View

5

Create Shopping List 5-1

5 Create Shopping List

The fourth step in the AP business process is to create the shopping list.

Create Shopping List TaskIn the Create the Shopping List task while preparing to go to market and while going to market, the Senior Buyer makes two sets of decisions:

■ Assortment Strategy - Key decisions are the number of styles to carry, number of variants per style (colors, fragrances or flavors) and the product attribute and/or Customer Segment level goals for the Assortment (the number or percentage of total for a brand, a silhouette, a color family, and so on).

■ Style Level Assortment - As the Senior Buyer collaborates with Designers, Vendors, and so on, they will build out the Styles to be carried (selecting the brand, targeted price point, proposed buy quantity, the description, the silhouette, and so on, for each Style). The attributes can be set up as the various decisions are made, rather than as one data entry step. Throughout the process, the Senior Buyer can roll-up the assortment decisions to date by product attribute to evaluate the assortments completeness, and so on.

In the next step, Build the Wedge, the Buyer selects styles from the Shopping List to assort into each cluster of Points of Commerce (stores, sites, applications, networks, and so on).

Process OverviewThis process enables merchants to collect their assortment ideas and thoughts and record their decisions as they go to market, work with designers, view look books and collections, and so on. In this task, merchants can perform the following:

■ Determine/calculate the number of styles for which the Senior Buyer wishes to eventually carry (either in total or by cluster parent, where each cluster would be eligible to carry the assortment created for its cluster Parent). This can be calculated through the use of sales plans (sales per item goals), historical sales and/or fixture/page capacity.

■ Merchants can set assortment targets by product attribute (brand, silhouette, color family, sleeve length, heel height, width, and so on) and/or by Customer Segment.

Table 5–1 Business Role in Create Shopping List

The Senior Buyer determines the assortment strategy, goes to market, and fills the shopping list in the Create Shopping List task.

Create Shopping List Task


Dozens of product attributes are packaged with the generally available version and many more can be added through configuration to suit each category's needs.

■ These targets may be seeded from a Look, from Last Year, loaded from an external source, or set administratively or by each Senior Buyer.

■ As the Shopping List assortment is built out by the Senior Buyer, the assortment mix, percentage of new and carryover styles, and so on, can be compared to the targeted assortment size using the Assortment Tote-board.

■ Senior Buyers can use the Shopping List to piece together their style level assortments by answering the following types of questions:

– What key trends must be reflected in the assortment and how have I assorted to those trends to date?

– How many styles should be carried from Brand X versus Last Year or from the last major floor-set?

– Should I shift the number of styles by price point tiers? Should a tier be added or subtracted?

– Which silhouettes, embellishments, colors families, and so on, should be featured versus supported?

– How should the assortment be adjusted from look to look (floor-set to floor-set)? Should a specific assortment trend or theme be pre-launched and built for two floor-sets before contracting it?

– How many colors and color runs (basic, seasonal basic, trend, and so on) should be carried by this style?

– Should this style be carried in a basic or an extended size run?

– Hundreds of decisions are made in this phase and all of them can be recorded here, rather than in a spreadsheet, e-mail, and so on.

– For new styles, the merchant/trader creates placeholder styles using Dynamic Position Maintenance (DPM). For more information on DPM, see the Oracle Retail Predictive Application Server User Guide for the Fusion Client.

■ Throughout the process, styles can be aggregated by attribute to compare the depth by attribute to your goals, last year, recent floor sets, customer panels/analysts, and even to social network or Endeca search results.

■ In addition to attributing the items, merchants can record their thoughts regarding cost, price, color runs, sales volume, and buy quantities for each style. This data can be used to seed the Buy Plan.

■ Then, as the Senior Buyer is fleshing out the assortment, their decisions can be shared with a merchandising system application so that styles created/updated in Assortment Planning can be shared automatically with a merchandising system application. AP refers to this functionality as Slow Item Build. For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Installation Guide.

– If this capability is utilized, merchants no longer have to set up the style/style-color twice (in both AP and a merchandising system application). Styles and style-colors can be set up in AP only and allow it flow to a merchandising system application. This covers both creating the style number, style description, and its assignment to a subclass, as well as creating/updating the attributes, color diffs and size diffs for the style number



(color and size diffs are merchandising system application terms for color and size runs or groups).

– This same process also is available when creating the style-colors (as part of the Build the Wedge process).


■ Step 1 - Review/History Plans

■ Step 2 - Set Assortment Size

■ Step 3 - Set Shopping List Goals

■ Step 4 - Create Shopping List


Build the Create Shopping List WorkbookTo build the Create Shopping List workbook:

1. Select the New Workbook icon in the Create Shopping List task.

Figure 5–1 Create Shopping List Task


2. In the Select Look(s) page, select the looks to be loaded into the workbook. Click Finish.

Note: If the Senior Buyer plans to use a Sister Look to plan the assortment, the Sister Look also needs to be selected in this step of the wizard.



Figure 5–2 Workbook Wizard Select Look(s) Page


Step 1 - Review/History PlansIn this step, the Senior Buyer has access to a variety of historical and plan information as shown in the following list. This information is intended to provide a complete picture of what needs to be accomplished by this assortment and what has been accomplished by prior assortments, both in terms of sales/profitability and in terms of key trends and attributes that define each assortment.


■ History Tab:

– Review History by Attribute View

– Review History by Customer View

■ PoC Tab:

– Review PoC Plan View

■ Sister Look Tab:

– Review Sister Look by Attribute View

– Review Sister Look by Customer View

■ Look Tab:

– Review Look View

History TabIn this tab, the Senior Buyer is able to review historical sales and profitability by product attribute or by customer segment. A number of product attributes (silhouette, heel height, sleeve length, and so on) grouped by type (general, footwear, handbags, tops, and so on) are included in this generally available release, but many more can be added. This information can be useful in thinking about which trends should be carried forward by product attribute or by customer segment into the Shopping List that is about to be created.



Review History by Attribute View This view focuses on the sales and profitability history of prior assortments for the same time periods last year by product attribute, Subclass (or higher), and Cluster (or higher).

Figure 5–3 Review History by Attribute View

Review History by Customer View This view focuses on the sales and profitability history of prior assortments for the same periods last year by Customer Segment, Subclass (or higher), and Cluster (or higher).

Figure 5–4 Review History by Customer View



PoC TabIn this tab, the Senior Buyer is able to view the planned sales (from the Merchandise Financial and/or Location Plan) and profitability for the time periods covered by each Look in the workbook at the intersection of Subclass (or higher) and Cluster (or higher) level. In the Administrative section, the Merchandise Financial Plan and Location Plans (or LY) are spread down to the Subclass, Week, and Cluster levels (if they were not created originally at this level).

Review PoC Plan View This is the only view on this tab.

Figure 5–5 Review PoC Plan View

Sister Look TabThis tab shows the same measure set as on the History tab, but for the Sister Look of each Look in this workbook. This enables the Senior Buyer to evaluate the key product and customer segment trends from the Sister Look that may be relevant in building these new Looks.

A Sister Look can be used to:

■ Maintain a consistent set of assortment themes or trends across several looks even if you plan to add/drop style-colors in each look.

■ Pattern the mix of key product attributes from the Sister Look to this look. For example, you may want to maintain a similar ratio of basic to classic to trend styles from one look to another (you can also do this with silhouette, fabric, price point, and/or other product attributes).

■ Align two different groups of subclasses (such as, tops and bottoms) in different Looks for a similar time period.

Review Sister Look by Attribute View This view focuses on the sales and profitability history of prior assortments for the Sister Looks by product attribute, Subclass (or higher), and Cluster (or higher).

Note: As previously mentioned, if the Senior Buyer plans to use a Sister Look to plan the assortment, the Sister Look also needs to be selected in the Select Look(s) page of the wizard during the workbook build.



Figure 5–6 Review Sister Look by Attribute View

Review Sister Look by Customer View This view focuses on the sales and profitability history of prior assortments for the Sister Looks by Customer Segment, Subclass (or higher), and Cluster (or higher).

Figure 5–7 Review Sister Look by Customer View

Look TabThis tab shows the Senior Buyer the start and end dates, their duration in days, the prior look and the Sister Look for each look in this workbook. The start and end date for a style launching in a given look is defaulted to the look's start and end dates. The dates can be adjusted. This view matches the Define Look(s) view in the Look Management task.



Review Look View This is the only view on this tab.

Figure 5–8 Review Look View

Step 2 - Set Assortment SizeIn this step, the Senior Buyer uses planned or historical sales and/or capacity (fixtures, pages, boards, and so on) to determine (using a calculation with multiple options and an override) the targeted size of the each look's assortment.

There are two supported methods for setting the assortment size: Run of Sales and Fixture Capacity.

Run of SalesThere are four components to the Run of Sales approach:

■ Determine an average run of sales per style-color in the assortment.

■ Select a total sales plan for this Look.

■ Divide the total sales plan by the average run of sales per style-color.

■ Review or revise the resulting recommended assortment size.

There are a variety of ways to calculate the inputs (the first two bullets) such as using last year, a Sister Look, a prior Look, or a Location Plan and so on. The Senior Merchant is able to adjust the inputs manually as well as override the resulting style-color count.

The sales capability enables the Senior Buyer to use gross or net sales in calculating the assortment size. Net sales equals gross sales minus customer returns (additional layers can be added to this calculation). There are two sales tabs, one for Brick & Mortar and one for Direct. Brick & Mortar uses net sales. Direct starts with gross sales to calculate net sales. All clusters can be planned on either tab, with the Net Sales measure being the same measure on both tabs, so updating Net Sales on one tab will show the same result in the Net Sales measure on the other tab. Consider the two tabs to be a difference of approaches.

Fixture CapacityThere are four steps to the Run of Sales approach with Net Sales versus Gross Sales leading to Net Sales:

■ Review/assign fixtures for each Look or Look Group (this likely was defaulted from an external source or by an Administrator).

■ Review/revise the capacity, in units, of each fixture in units (this likely was defaulted from an external source or by an Administrator).



■ Much like the Run of Sales approach, you can select whether to use history, a Sister Look, or a Prior Look to determine the ratio of capacity in units to the number of style-colors.

■ Review/adjust the result of dividing the fixture capacity by the ratio of capacity per assorted style-color.

Set Assortment SizeThroughout the Set Assortment Size step, you are able to compare both the Run of Sales methods (Net or Gross) and Fixture Capacity approach to identify an appropriate assortment size. You also can choose to ignore those methods and just set an assortment size that you have determined externally. Either way, AP will use net out the carried over items from the assortment size so you can track how many new styles and style-colors must be found to fill out your ideal assortment size.


■ Brick & Mortar Sales Tab:

– Determine # of Styles-Colors using Sales View

■ Brick & Mortar Capacity Tab:

– Review Space Capacity & Constraints View

– Assign # of Fixtures View

– Determine # of Styles-Colors using Capacity View

■ Direct Sales Tab:



Seed PlanThis menu option, available on all three tabs, enables the Senior Buyer to use Last Year's sales for the same time period of each look, a Sister Look of each look, or the Location Plan (loaded from the Location Planning solution for the same time period as the Look or created in the administrative section by spreading the Merchandise Financial Plan to store level using historical sales and sister stores) to calculate the logical number of style-colors that should be carried in the assortment. The Senior Buyer can evaluate all three options and use any of them or override the result with another number.

Brick & Mortar Sales TabThis tab defaults to a Brick & Mortar Sales approach (Net Sales) for calculating a run of sales used to estimate the assortment size for each Look, with of the option of using:

■ Last Year's sales for the same time period of each look.

■ Sales from the Sister Look of each look.

■ Location Plan Sales (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.

If you wish to use a Gross Sales less Customer Returns process to calculate Net Sales, use the Direct Sales Tab.



A Sister Look is used if you want to copy a prior look that meets your needs or if you want to maintain a consistent assortment size across several looks even though you plan to add/drop style-colors in each look.

Determine # of Styles-Colors using Sales View This is the only view on this tab.

Figure 5–9 Determine # of Styles-Colors using Sales View

Brick & Mortar Capacity TabIn this tab, the Senior Buyer uses a capacity-based approach to determine an optimal number of style-colors for each Look's assortment. It is a three step process:

1. Review the capacity and constraints for each potential fixture (or page and so on) that could be used in each Look. The capacities and constraints are set administratively or loaded from an external source.

2. Select (if not done administratively or loaded from a space planning solution) the fixtures used in this Look.

3. Review the calculated (based on the fixtures assigned to this Look or to a Sister Look) assortment size and/or override the calculated assortment size.

A Sister Look is used if you want to copy a prior Look that meets your needs or if you want to maintain a consistent assortment size across several Looks even though you plan to add/drop style-colors in each Look.

Review Space Capacity & Constraints View In this view, the Senior Buyer can review the capacity and constraints for each potential fixture that could be used in each Look. The capacities and constraints are set administratively or loaded from an external space planning solution.



Figure 5–10 Review Space Capacity & Constraints View

Assign # of Fixtures View In this view, the Senior Buyer assigns the fixtures used in this Look (if not done administratively or loaded from an external space planning solution).

Figure 5–11 Assign # of Fixtures View

Determine # of Styles-Colors using Capacity View In this view, the Senior Buyer reviews the calculated (based on the fixtures assigned to this Look or to a Sister Look) assortment size and/or overrides the calculated assortment size.




Figure 5–12 Determine # of Styles-Colors using Capacity View

Direct Sales TabThis tab defaults to a Net Sales approach (Gross Sales minus Returns equals Net Sales; further measures can be subtracted from Gross Sales through configuration) for calculating a run of sales used to estimate the assortment size for each Look, with of the option of using:

■ Last Year's gross sales and customer returns for the same time period of each look.

■ Gross Sales and customer returns from the Sister Look of each look.

■ Location Plan Gross Sales and customer returns (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.


Determine # of Styles-Colors using Sales View This is the only view for this tab.




Step 3 - Set Shopping List GoalsIn this step, the Senior Buyer can set goals for any or all product attributes relevant to each Look. They also can vary by cluster parent, if desired. They may be entered by the Senior Buyer or seeded (and then edited) from the Look running the same time last year or administrative goals that were set in the Look Maintenance workbook.

Goals can be set in terms of the number of style-colors for a specific attribute or a percentage of the total number of style-colors carried in the Look or Look Group and spread to each Look.

The Senior Buyer can use these product attribute based goals as their shopping list when going to market, meeting with designers, reviewing collections/look books, and so on.


■ Seed Target Mix View

■ Target Mix by Attribute View


Seed SL Goals (SL = Shopping List) This custom menu seeds the product attribute based goals from the Look running at the same time last year or from attribute based targets that were loaded externally or set in the Look Maintenance workbook. The Senior Buyer can choose to edit directly the results of the seeding process.

Seed Target Mix ViewIn this view, if seeding the Product Attribute Goals for each Look, the Senior Buyer can choose whether to seed the goals from the Look running the same time last year or from administratively defined or from externally loaded attribute targets.



Figure 5–14 Seed Target Mix View

Target Mix by Attribute ViewIn this view, the Senior Buyer can review three sets of Product Attribute goals: 1) the Look that ran during the same time Last Year, 2) the Look Targets set or loaded administratively, and 3) the Working Plan version (that was seeded and/or edited by the Senior Buyer).

Once the Shopping List is approved in Step 5, the Working Plan is copied into the Current Plan version of the goals.

Figure 5–15 Target Mix by Attribute View

Step 4 - Create Shopping ListAs the Senior Buyer goes to market (collaborating with designers and viewing assortment options), they can use this step to document their decisions as they build out their style list and roll it up to compare to the attribute level goals for the assortment (from Step 3 - Set Shopping List Goals).

The key to this approach is to build out the assortment in a natural fashion. You can start with reserving 10 style-colors for brand x or creating three A-line silhouette styles and flesh them out as you go (and recording your thoughts on commitment quantities, prices and sales levels, and so on). The go to market process is far from linear, lasting



for a few days to weeks, and this step supports that approach. You use the views in this step as your scratchpad to record your ideas and plans.

Some retailers may use a Product Lifecycle Management (or PLM) solution to manage the go to market process, where the PLM solution stores all of the potential assortment options. In this scenario, the Senior Buyer uses AP to store the choices they select from the full spectrum of options offered by the PLM solution. There are many appropriate models for interaction between PLM and AP (one model is shown in the following figure). This version of AP can be configured to support many of the PLM and AP process models that you are likely to utilize.

The following figure shows one example of a PLM and AP process model. Others are also supported.

Figure 5–16 PLM and AP Process Model

This step has the following tab and views:

■ Fill the Shopping List Tab:

– Fill the Shopping List View

– Style-Color Totals & Financial Budget View

■ Define Styles Tab:

– Define Styles View

– Product Attributes View

■ Review the Shopping List Tab:

– Shopping List by Attribute View

– Shopping List by Customer View

– Sister Look Shopping List by Attribute View

– Sister Look Shopping List by Customer View

Custom Menu OptionsThis step has one menu option.



Spread Plan This option enables the Senior Buyer to populate the proposed sales plan for each of the placeholder or assorted styles by spreading the Subclass level Merchandise Financial Plan down to the Style level.

Fill the Shopping List TabThe heart of the Shopping List process is found on this tab. Here the Senior Buyer can record ideas/decisions regarding the core components of the Style level Assortment in terms of the following:

■ How many colors to carry for each style

■ Whether the style should be carried in basic, seasonal, or trend color runs

■ Sales potential for the style

■ Buy quantities committed to or proposed

■ Sell-thru goals

■ Potential depth of the size range to be carried

■ Estimated return rates may be recorded here too, if necessary

These decisions can be made at Cluster Parent, Cluster Group (Channel), or All Cluster level. The decisions are spread down from All Cluster or Cluster Group (Channel) to the Cluster Parent level automatically, enabling the Senior Buyer to then tailor only those details that matter.

Fill the Shopping List View In this view, the Senior Buyer records their decisions regarding the style level shopping list. Those decisions are mentioned in the introduction to the Fill the Shopping List tab.

The sales, returns, margin, and sell-thru numbers entered here can be used to seed the buy plan which could save time for the Buy planner (Buyer or Senior Buyer). A style ranking and price tier is calculated for each style.

Figure 5–17 Fill the Shopping List View



Style-Color Totals & Financial Budget View Consider this view to be an Assortment Tote-board. This view enables the Senior Buyer to track how many style-colors are being carried over into this Look, how many new styles and their proposed color counts have been created for this Look, and how many style/colors remain to be created/planned for this Look.

This view also can show those same slices of the assortment (carry-over, new, and yet to be created) in terms of style-colors counts, planned sales units, and planned sales in retail value. The sales numbers represent the sales potential referred to in the tab introduction.

Figure 5–18 Style-Color Totals & Financial Budget View

Define Styles TabIn the two views on this tab, you are able to create placeholder styles, define their product attributes, their estimated cost/price/markup and whether you plan to bring them in for a time-frame that is different from the look's start and end dates.

You do not need to know any of these attributes from the start. The idea is these views enable the Senior Buyer to slowly build out the assortment throughout the go-to market process (by adding an attribute or style here and there as one move through the process).

In either view, the Senior Buyer can create placeholder styles using the right click menu. Then overnight, the Slow Item Build process renames those placeholder style numbers with merchandising system style numbers. For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Installation Guide.

Define Styles View In this view, the style placeholder can be created along with its description and proposed cost/price/markup. The price tier of the attribute is calculated automatically once you set a proposed price point (this can be changed at any time).



Figure 5–19 Define Styles View

Product Attributes View In this view, you are able to assign values for any of the relevant product attributes for the style (fit, silhouette, and so on). You are able to add more product attributes as needed.

Among all the available product attributes in this view, for the GA version of AP, the following attributes will be shared with the merchandising system during the Slow Item Build process:

■ Brand

■ Collection

■ Fabric

■ Lifestyle

■ Occasion

■ Pattern

■ Price Tier

■ Seasonality

■ Silhouette

■ Sub-Brand

■ Vendor

Note: The product attributes can be updated while the style remains an informal position. After the style position is formalized, the attributes will not be editable. The merchandising system becomes the system of record.



Figure 5–20 Product Attributes View

Review the Shopping List TabIn this tab, the Senior Buyer can view style information rolled up to the subclass level for those styles added to the Shopping List. The plan can be rolled up by product attribute and compared to the attribute goals, to last year and recent trend, and so on, or rolled up by customer segment where selected product attributes are used to determine whether each style is attractive to each customer segment.

These same two views also are shown for the Sister Look to provide a comparison point of history or recent trend.

Shopping List by Attribute View In this view, the Shopping List (styles and their attributes) is rolled up to the attribute level, compared to the attribute goals as well as to last year and to Endeca search results (where applicable).

Figure 5–21 Shopping List by Attribute View



Shopping List by Customer View In this view, the Shopping List (styles and their product attributes) is rolled up to the customer segment level. Each style's attributes are compared to the product attribute (price, silhouette, and so on) definitions of each customer segment. If selected product attributes are desirable for that Customer Segment, then the style is counted for that segment along with its sales, margin, and so on.

A common way to use this view is:

Typically Customer Segment A generates 20% of the Class 10's sales, but currently only 15% of my assortment's sales represent styles appropriate for Customer Segment A.

This same analysis can be based on the number of styles and margin too.

Figure 5–22 Shopping List by Customer View

Sister Look Shopping List by Attribute View This is the same view the Shopping List by Attribute but this view shows the Sister Look to the Look being assorted.



Figure 5–23 Sister Look Shopping List by Attribute View

Sister Look Shopping List by Customer View This is the same view the Shopping List by Customer but this view shows the Sister Look to the Look being assorted.

Figure 5–24 Sister Look Shopping List by Customer View

Step 5 - ApproveIn this final step of the Shopping List process, the Senior Buyer decides they have completed the shopping list and wants to make it available to other designated users, in particular to the Buyer who will pull styles from the Shopping List to fill out each Cluster's Wedge.

This step will convert the Working Plan decisions regarding start/end dates, prices, descriptions and attributes into Current Plan versions of the Working Plan measures. The Current Plan versions should be used for external reporting and so on.



This step can be completed more than once, if the Shopping List requires additional changes after it has been approved. The Working Plan version will overlay the Current Plan version if approved again.


Approve Plan This custom menu option copies the Working Plan version of the measures into Current Plan version of the measure. This custom menu option is available only on this step.

Approve Shopping List ViewIn this view, the Senior Buyer selects the Look to be approved and enters any approval notes (optional), then selects the Approve Plan button that copies the Working Plan version of the measures into the Current Plan version of each measure.

Figure 5–25 Approve Shopping List View

6

Build the Wedge 6-1

6Build the Wedge

Build the wedge is the fifth step in the AP business process.

Build the Wedge TaskIn the Build the Wedge task, the Buyer picks up the Assortment process from the Senior Buyer who has gone to market. In building the wedge, the Buyer makes two sets of decisions (under the Senior Buyer's guidance):

■ Assortment Strategy - The Senior Buyer has set the assortment strategy at the Total Subclass/Class Level or by Cluster Parent (Brick & Mortar versus Direct, and so on). The following key decisions are made by the Buyer:

– Number of variants per style (colors, fragrances or flavors). This can be calculated by using sales plans (sales per item goals), fixture/page capacity, or manually entered by the Buyer.

– Product attribute, color and/or customer segment level goals for the Assortment (the number or percent of total for a brand, a silhouette, a color family, and so on).

– The Senior Buyer's Cluster Parent strategy will spread down to the Cluster level automatically, so the Buyer only needs to tailor those Clusters that vary from the Cluster Parent's Strategy.

■ Style-Color Level Assortment - Now the Buyer can use AP's Wedge Population Automation to select the appropriate style-colors from the Shopping List to meet each Cluster's Assortment Strategy (also referred to as Building the Wedge). This automation is iterative and works in near real-time to enable to Buyer to tailor each wedge in a short period of time.

In the next step, Buy Planning, the Senior Buyer or Buyer plans Sales, Margin or Markdowns, Inventory and Receipts for their assortment based on the Assortment Strategy and Wedge Population.

What is a Wedge?A Wedge is a traditional retail term that originated because the visual created when showing the breadth of the assortment by Cluster looked like a wedge (See the

Table 6–1 Business Role in Build the Wedge

The Buyer Analyst tailors, for each wedge, the strategy inherited from the Senior Buyer's shopping list, then assorts and time-phases each wedge from the styles identified in the Shopping List.

Build the Wedge Task


traditional wedge diagram below). Stores traditionally were clustered based on sales volume only and the assortment strategy was to give the full assortment to the larger volume stores and fewer items to the lower volume stores.

When assorting to a traditional wedge, the styles were ranked by buy quantity or sales, and so on and with Clusters sorted by volume, the larger volume stores received all styles, the medium volume stores received the top 85% of the styles and the next volume band down received 75% of the styles (the percentages are examples).

There were some manual edits, of course, but for the most part, ranking on buy quantities or sales, drove the process.

However this approach, while easier to create, does not reflect the desires of the Customers shopping the stores, sites, applications, and so on, in each Cluster. Therefore, we have introduced what we are calling a Tailored Wedge. (See the figure below for an example). Tailoring the Wedge creates assortments that match the Customer characteristics of each Cluster. The nice, neat are tailored as a top seller in general, may not sell well in a particular group of stores, sites applications, and so on, and by not stocking it there, you will be able to sell something else at a fuller margin as that less desirable item will require more markdowns and clearance activity to move through it.

Creating these types of wedges manually would take a lot of extra time, so the Assortment Planning solution includes a Wedge Population Automation capability that recommends a tailor set of Wedges based on the Buyer's goals for each Wedge (and allow the Buyer to make manual edits as needed). Wedge Population Automation is described in Step 4 - Fill the Wedge.

Figure 6–1 Traditional Wedge Approach versus Oracle Retail’s Tailored Wedges

Process OverviewOnce the Senior Buyer has completed the Shopping List, creating the style level assortment (in total or by cluster parent), the Buyer then assorts styles from the Shopping List to each Cluster of Points of Commerce:

1. Determine the number of styles-colors required for each Point of Commerce cluster.


Build the Wedge 6-3

This can be inherited from the Cluster Parent level number of style-colors (created by the Senior Buyer), calculated with sales plans (sales per item goals) and/or fixture/page capacity or manually entered by the Buyer.

2. Create style-color level positions below the style (based on the number of colors per style identified by the Senior Buyer). As with style creation, the style color numbers only need to be set up in AP. AP sets them up automatically in a merchandising system (as Color Diffs), if this capability has been activated (called Slow Item Build in AP). For more information regarding Slow Item Build, see the Oracle Retail Assortment Planning Installation Guide.

3. 3. Create Product Attribute and Color Assortment Goals. Product Attribute level goals created by the Senior Buyer at the Cluster Parent level in the Shopping List are copied to each cluster, then the Buyer can adjust each cluster's attribute goals as needed. Like with the Shopping List, the Buyer can use last year, recent trend, customer panels, or social network or Endeca search results to set those attribute goals by cluster.

4. Fill the wedge. The Buyer determines the style-color level choices for each cluster. The Assortment Planning solution includes a feature called Wedge Population Automation. The automation recommends which style-color options to carry in each cluster:

a. As always, Buyers can choose to utilize all, part, or none of the recommendations and/or change the goals and rerun the automation.

b. This automation runs in real-time, when the Buyer engages it (see Custom Menu options), not in batch.

5. The planned sales and buy quantity can be calculated seeded on the clusters assigned in this process.

6. Throughout the process, the Buyer can aggregate each cluster's assortment by attribute to compare the depth by brand, color, silhouette, and so on (for all attributes) to their goals, last year, recent trend, customer panels and/or social networks/Endeca search.

The Build the Assortment Wedge task has the following steps:

■ Step 1 - Review History/Plans

■ Step 2 - Set Assortment Size

■ Step 3 - Set Wedge Goals

■ Step 4 - Fill Wedge

■ Step 5 - Time Phased View


Create the Build the Wedge WorkbookTo create the Build the Wedge workbook:

1. Select the New Workbook icon in the Build the Wedge task.



Figure 6–2 Build the Wedge Task


2. In the Select Look(s) page, select the looks to be loaded into the workbook. Click Finish.




Build the Wedge 6-5

Step 1 - Review History/PlansIn this step, the Buyer has access to a variety of historical and plan information as shown in the following list. This information is intended to provide a complete picture of what needs to be accomplished by this assortment and what has been accomplished by prior assortments, both in terms of sales/profitability and in terms of key trends and attributes that define each assortment.


■ History Tab:

– Review History by Attribute View

– Review History by Customer View

■ Plans Tab:

– Review PoC Plan View

– Review Shopping List View

■ Sister Look Tab:

– Review Sister Look by Attribute View

– Review Sister Look by Customer View

■ Look Tab:


History TabOn this tab, the Buyer is able to review historical sales and profitability by product attribute or by customer segment. A number of product attributes (silhouette, heel height, sleeve length, and so on) grouped by type (general, footwear, handbags, tops, and so on) are included in this generally available release, but many more can be added. This information can be useful in thinking about which trends should be carried forward by product attribute or by customer segment into the wedges that are about to be assorted.

Review History by Attribute View This view focuses on the sales and profitability history of prior assortments for the same time periods last year by product attribute, Subclass (or higher), and Cluster (or higher).



Figure 6–4 Review History by Attribute View

Review History by Customer View This view focuses on the sales and profitability history of prior assortments for the same periods last year by Customer Segment, Subclass (or higher), and Cluster (or higher).

Figure 6–5 Review History by Customer View

Plans TabOn this tab, the Buyer is able to view the sales and profitability plan for the time periods covered by each look at the intersection of Subclass (or higher) and Cluster (or higher) level. The Buyer is also able to view an aggregation of the planned gross sales, customer returns, and net sales planned in the Shopping List.

Review PoC Plan View This view focuses on the sales and profitability history of prior assortments for the same time periods last year by product attribute, Subclass (or higher), and Cluster (or higher). In the Administrative section, the Merchandise Financial Plan and Location Plans (or LY) are spread down to the Subclass, Week, and PoC Levels (if they were not created originally at this level.


Build the Wedge 6-7

Figure 6–6 Review PoC Plan View

Review Shopping List View This view focuses on the sales and profitability plan from the Shopping List by Subclass (or higher), and Cluster (or higher).

Figure 6–7 Review Shopping List View

Sister Look TabThis tab shows the same measure set as on the History tab, but for the Sister Look of each look in this workbook. This enables the Buyer to evaluate the key product and customer segment trends from the Sister Look that may be relevant in building these new looks.

A Sister Look can be used to:

■ Maintain a consistent set of assortment themes or trends across several looks even if you plan to add/drop style-colors in each look.

■ Pattern the mix of key product attributes from the Sister Look to this look. For example, you may want to maintain a similar ratio of basic to classic to trend styles from one look to another. You can also do this with silhouette, fabric, price point and/or other product attributes.

■ Align two different groups of subclasses (such as, tops and bottoms) in different Looks for a similar time period.

Review Sister Look by Attribute View This view focuses on the sales and profitability history of prior assortments for the Sister Looks by product attribute, Subclass (or higher), and Cluster (or higher).



Figure 6–8 Review Sister Look by Attribute View

Review Sister Look by Customer View This view focuses on the sales and profitability history of prior assortments for the Sister Looks by Customer Segment, Subclass (or higher), and Cluster (or higher).

Figure 6–9 Review Sister Look by Customer View

Look TabThis tab shows the Buyer the start and end dates, their duration in days, the prior look and the Sister Look for each look in this workbook. The start and end date for a style launching in a given look is defaulted to the look's start and end dates. The dates can be adjusted.

Review Look View This is the only view on this tab. This view matches the Define Look(s) view in the Look Management task.


Build the Wedge 6-9


Step 2 - Set Assortment SizeIn this step, the Buyer uses planned or historical sales and/or capacity (fixtures, pages, boards, and so on) to determine (using a calculation with multiple options and an override) the targeted size of the each wedge.

There are two supported methods for setting the assortment size: Run of Sales and Fixture Capacity.

Run of SalesThere are four components to the Run of Sales approach:

■ Determine an average run of sales per style-color in the assortment.

■ Select a total sales plan for this Look.

■ Divide the total sales plan by the average run of sales per style-color.

■ Review or revise the resulting recommended assortment size.

There are a variety of ways to calculate the inputs (the first two bullets) such as allowing the Senior Buyer's decisions from the Shopping List spread down to each cluster or use last year, a Sister Look, a prior Look, or a Location Plan and so on. The Buyer is able to adjust the inputs manually as well as override the resulting style-color count.

The sales capability enables the Buyer to use gross or net sales in calculating the assortment size. Net sales equals gross sales minus customer returns (additional layers can be added to this calculation). There are two sales tabs, one for Brick & Mortar and one for Direct. Brick & Mortar uses net sales. Direct starts with gross sales to calculate net sales. All clusters can be planned on either tab, with the Net Sales measure being the same measure on both tabs, so updating Net Sales on one tab will show the same result in the Net Sales measure on the other tab. Consider the two tabs to be a difference of approaches.

Fixture CapacityThere are four steps to the Run of Sales approach with Net Sales versus Gross Sales leading to Net Sales:

■ Review/assign fixtures for each Look or Look Group (this likely was defaulted from an external source or by an Administrator).

■ Review/revise the capacity, in units, of each fixture in units (this likely was defaulted from an external source or by an Administrator).

■ Much like the Run of Sales approach, you can select whether to use history, a Sister Look, or a Prior Look to determine the ratio of capacity in units to the number of style-colors.



■ Review/adjust the result of dividing the fixture capacity by the ratio of capacity per assorted style-color.

Set Assortment SizeThroughout the Set Assortment Size step, you are able to compare both the Run of Sales methods (Net or Gross) and Fixture Capacity approach to identify an appropriate assortment size. You also can choose to ignore those methods and just set an assortment size that you have determined externally. Either way, AP will use net out the carried over items from the assortment size so you can track how many new styles and style-colors must be found to fill out your ideal assortment size.


■ Brick & Mortar Sales Tab:


■ Brick & Mortar Capacity Tab:

– Review Space Capacity & Constraints View

– Assign # of Fixtures View

– Determine # of Styles-Colors using Capacity View




Seed PlanThis menu option, available on all three tabs, enables the Senior Buyer to use Last Year's sales for the same time period of each look, the Shopping List plan, or the Location Plan (loaded from the Location Planning solution for the same time period as the Look or created in the administrative section by spreading the Merchandise Financial Plan to store level using historical sales and sister stores) to calculate the logical number of style-colors that should be carried in the assortment. The Senior Buyer can evaluate all three options and use any of them or override the result with another number.

Brick & Mortar Sales TabThis tab defaults to a Brick & Mortar Sales approach (Net Sales) for calculating a run of sales used to estimate the assortment size for each Look, with of the option of using:

■ Last Year's sales for the same time period of each look.

■ Sales from the Sister Look of each look.

■ Location Plan Sales (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.

If you wish to use a Gross Sales less Customer Returns process to calculate Net Sales, use the Direct Sales tab.



Build the Wedge 6-11

Determine # of Styles-Colors using Sales View This is the only view on this tab.


Brick & Mortar Capacity TabOn this tab, the Buyer is able to use a capacity based approach to determine an optimal number of style-colors for each Wedge's assortment (or allows the Senior Buyer's Shopping List planned assort size spread down to the Wedge). It is a three step process:

1. Review the capacity and constraints for each potential fixture (or page and so on) that could be used in each Look. The capacities and constraints are set administratively or loaded from an external source.

2. Select (if not done administratively or loaded from a Space planning solution) the fixtures used in this Look.

3. Review the calculated (based on the fixtures assigned to this Look or to a Sister Look) assortment size and/or override the calculated assortment size.


Review Space Capacity & Constraints View In this view, the Buyer can review the capacity and constraints for each potential fixture that could be used in each Look. The capacities and constraints are set administratively or loaded from an external space planning solution.



Figure 6–12 Review Space Capacity & Constraints View

Assign # of Fixtures View In this view, the Buyer assigns the fixtures used in this Look, if not done administratively or loaded from an external space planning solution (or allows the Senior Buyer's Shopping List planned assort size decisions spread down to the Wedge).

Figure 6–13 Assign # of Fixtures View

Determine # of Styles-Colors using Capacity View In this view, the Senior Buyer reviews the calculated assortment size (based on the fixtures assigned to this Look or to a Sister Look) and/or overrides the calculated assortment size.




Figure 6–14 Determine # of Styles-Colors using Capacity View

Direct Sales TabThis tab defaults to a Net Sales approach (Gross Sales minus Returns equals Net Sales; further measures can be subtracted from Gross Sales through configuration) for calculating a run of sales used to estimate the assortment size for each wedge, (or allows the Senior Buyer's Shopping List planned assort size spread down to the Wedge), with of the option of using:

■ Last Year's gross sales and customer returns for the same time period of each look.

■ Gross Sales and customer returns from the Sister Look of each look.

■ Location Plan Gross Sales and customer returns (loaded from the Location Planning solution for the same time period as the look or created in the administrative section) to calculate the logical number of style-colors that should be carried in the assortment.

A Sister Look is used if you want to copy a prior Look that meets your needs or if you want to maintain a consistent assortment size across several looks even though you plan to add/drop style-colors in each look.

Determine # of Styles-Colors using Sales View This is the only view for this tab.




Step 3 - Set Wedge GoalsIn this step, the Buyer can set goals for any or all product attributes relevant to each Look and Cluster (the level at which Wedges are created). They may be entered by the Buyer or seeded (and then edited) from the Look running the same time last year, from the Senior Buyer's Shopping List attribute goals or from targets that were loaded externally or set administratively.

Color is added for the first time to the product attribute goals as the Senior Buyer is building a Style level Shopping List while the Buyer is assorting each Wedge at the Style-Color level.

■ Goals can be set in terms of the number of style-colors for a specific attribute or a percentage of the total number of style-colors.

■ Color is maintained on a separate attribute hierarchy as there could be hundreds of colors in the hierarchy as opposed to a just dozen or more of most other attributes.

The Buyer can use these product attribute based goals to assort each Wedge using the Wedge Automation process in Step 4.


■ Seed Target Mix View

■ Target Mix by Attribute View

■ Target Mix by Color View


Seed Wedge Goals This custom menu seeds the product attribute and color-based goals from the Look running at the same time last year, from the Shopping List targets created by the Senior Buyer or from attribute based targets that were loaded externally or set administratively. The Buyer can choose to edit directly the results of the seeding process.



Seed Target Mix ViewIn this view, if seeding the Product Attribute Goals for each Look, the Buyer can choose whether to seed the goals from the Look running the same time last year or from administratively defined or from externally loaded attribute targets.

Figure 6–16 Seed Target Mix View

Target Mix by Attribute ViewIn this view, the Buyer can review, along with the Working Plan version of the attributes, three sets of Product Attribute goals: 1) the Look that ran during the same time Last Year; 2) the Look Targets set or loaded administratively and 3) the Working Plan version that was created by the Senior Buyer in the Shopping List). Once the assorted wedges are approved in Step 5, the Working Plan is copied into the Current Plan version of the goals.

Figure 6–17 Target Mix by Attribute View

Target Mix by Color ViewIn this view, the Buyer can review four sets of color goals: 1) the Look that ran during the same time Last Year, 2) the Look Targets set or loaded administratively, 3) the Working Plan version (that was seeded and/or edited by the Buyer), and 4) the Current Plan version. Once the assorted wedges are approved in Step 5, the Working Plan is copied into the Current Plan version of the goals.



Figure 6–18 Target Mix by Color View

Step 4 - Fill WedgeIn this step, the Buyer completes the assortment creation process by assorting each Cluster's Wedge with style-color selections from the Shopping List. The Buyer may choose to populate them manually or to use the Wedge Population Automation capability to recommend selections that can be adjusted by the Buyer.

The Buyer may also need to create some of the style-color level positions under each Style using Dynamic Position Maintenance (DPM) which is accessed on the right click menu.


■ Fill the Wedge Tab:

– Fill the Wedge View

– Style-Color Totals & Financial Budget View

– Tailor the Wedge View

■ Define Style-Colors Tab:

– Define Style-Colors View

– Color Attribute View


■ Review Wedge Tab:

– Wedge by Attribute View

– Wedge by Color View

– Wedge by Customer View

– Sister Look Wedge by Attribute View

– Sister Look Wedge by Color View

– Sister Look Wedge by Customer View




Spread Plan This custom menu enables the Buyer to populate the proposed sales plan for each of the placeholder or assorted styles by spreading 1) the Shopping List plan, 2) the Subclass level Merchandise Financial Plan, or 3) last year sales down to the Style-Color level.

Populate Wedge This custom menu activates the Wedge Population Automation capability (discussed in the Fill the Wedge tab section).

Fill the Wedge TabThe heart of the Wedge process is found on this tab. Here the Buyer can assort each Wedge from the Shopping List and make key decisions about each Wedge at the Cluster Level (or Cluster Parent) and by Look (or Look Group).

The Buyer selects by Cluster (or Cluster Parent) (which spread down to each Wedge/Cluster):

■ Settings used by the Wedge Population Automation to decide which styles to carry and which colors of each style (the Buyer can override the results).

■ Seed and then edit by style/style-color (decisions can spread down from the style) the sales potential and the sell-thru goals.

■ Time-phase each cluster's wedge - The look's start/end dates default each wedge's start/end dates, but the Buyer can tailor them here to reflect the climate, and so on, represented by each cluster (for example: launch heavy winter coats over several weeks by cluster).

The Buyer views by Wedge (Cluster) or by Cluster Parent (which spread down to each Wedge/Cluster):

■ Buy quantities committed to by the Senior Buyer.

■ Planned size ranges (standard, extended, and so on).

■ Estimated return rates may be recorded here too, if necessary.

These decisions can be made by Cluster, Cluster Parent, or in total. The decisions are spread down from Total or Cluster Parent down to the Cluster level automatically, enabling the Buyer then to tailor only those details that matter.

Fill the Wedge View In this view, the Buyer selects style and style-color options from the Shopping List to be assorted in each Cluster's Wedge. This can be seeded using Wedge Population Automation (controlled through Buyer driven settings) and then edited by the Buyer.

The sales, returns, margin, and sell-thru numbers entered here (seeded from the Senior Buyer's Shopping List) can be used to seed the buy plan, which could save time for the Buy planner (the Buyer or the Senior Buyer).

Wedge Population Automation could save you time by using the goals and attributes defined for each Subclass (or Higher) and Look by Cluster to select the style-colors for each Wedge's Assortment.

Wedge Population AutomationWedge Population Automation could save you time by using the goals and attributes defined for each Subclass (or higher) and Look by Cluster to recommend the style-colors for each Wedge's assortment. Wedge Population Automation is done in near real-time and does not require a batch. It selects style-colors from the Shopping List, for each wedge, based on the following criteria:



■ Each wedge's assortment size strategy (number of style-colors).

■ Each wedge's attribute goals (5 style-colors from Brand X, 4 style-colors in 100% cashmere and so on).

■ Each style-color's attributes (color, fabric, price tier, and so on) from the Shopping List.

■ Each style-color's assortment status - Must assort (or carried over), Must not assort, or Optional to assort.

■ Fill the Balance measure - The Automation uses the Fill the Balance measure (buy quantity, and so on) if all attribute goals are met, but the assortment size strategy is not met. In this case, the Automation rank-sorts the remaining unasserted style-colors and adds the highest ranking style-colors until the assortment size strategy is met.

Once the assortment is built, review the results and do the following:

1. Override any of the results to carry or not to carry the style-color in a wedge.

2. Adjust the criteria listed above and rerun the automation.

The following figures shows an example of how the recommendations are made by the Wedge Population Automation capability.

Figure 6–19 Wedge Population Automation Recommendation Example



Figure 6–20 Fill the Wedge View

Style-Color Totals & Financial Budget View Consider this view to be an Assortment Tote-board:

■ Enables the Buyer to track how many style-colors are being carried over into this Look, how many new style-colors have been created for this Look, and how many style-colors remain to be created or planned for this Look.

■ Shows those same slices of the assortment (carry-over, new, and yet to be created) in terms of style-color counts, planned sales units, and planned sales in retail value. The sales numbers represent the sales potential referred to in this tab’s introduction.

Figure 6–21 Style-Color Totals & Financial Budget View

Tailor the Wedge View In this view, the Buyer can adjust the start and end dates of the look by cluster. This is called time phasing the wedge. Each wedge's start/end dates default to the look's dates, but the Buyer can tailor them here to reflect the climate, and so on, represented by each cluster (for example: launch heavy winter coats over several weeks by cluster from warmer to cooler clusters).



Figure 6–22 Tailor the Wedge View

Define Style-Colors TabOn the views on this tab, the Buyer is able to:

■ Create placeholder styles and style-colors

■ Define product attributes

■ Assign colors to style-colors

■ Set estimated cost/price/markup

■ Determine whether you plan to bring them in for a time-frame, that is different from the Look's start and end dates, by adjusting the style-color's start/end dates

In either view, the Buyer can create placeholder styles and style-colors using the Position Maintenance option on the right-click menu. Then overnight, the Slow Item Build process renames those placeholder style numbers with merchandising system style numbers and style-colors with the merchandising system color diff code. For more information on setting up the Slow Item Build process, see the Oracle Retail Assortment Planning Installation Guide.

Define Style-Colors View In this view, the style-color placeholder can be created along with its description, proposed cost/price/markup. The price tier of the attribute calculates automatically once you set a proposed price point (this can be changed at any time).

Figure 6–23 Define Style-Colors View

Color Attribute View In this view, the specific color for the style-color can be selected. This view intersects the style-color level of the product hierarchy with the color hierarchy. The color family level is visible in the view. The Buyer identifies the proper



color family for the style-color and then selects the detailed color from the Color picklist.

The Buyer can select colors for the newly created style-colors. For the newly created style-color, the color selected in this view will be shared with the merchandising system during the Slow Item Build process.

Figure 6–24 Color Attribute View

Product Attributes View In this view, the Buyer assigns values for any of the relevant product attributes for the style (fit, silhouette, and so on). The Buyer is able to add more product attributes as needed.


Among all the available product attributes in this worksheet, for the GA version of AP, the following attributes will be shared with the merchandising system during the Slow Item Build process:

■ Brand



■ Collection

■ Fabric

■ Lifestyle

■ Occasion

■ Pattern

■ Price Tier

■ Seasonality

■ Silhouette

■ Sub-Brand

■ Vendor

Review Wedge TabOn this tab, the Buyer can view various roll ups of the style-colors (and their attributes) added to each wedge to date. The plan can be rolled up by 1) product attribute, 2) color (and compared to the attribute or color goals, to last year and to recent trend, and so on), and 3) by Customer Segment, where selected product attributes are used to determine whether each style is attractive to each Customer Segment.

The three views are also shown for the Sister Look to provide a comparison point of history or recent trend.

Wedge by Attribute View In this view, the style-colors assigned to the wedge (and their product attributes) are rolled up by product attribute, compared to the attribute goals as well as to last year and to Endeca search results (where available).

Figure 6–26 Wedge by Attribute View

Note: The product attributes can be updated while the style remains an informal position. After the new style positions are formalized, the attributes will not be editable. The merchandising system becomes the system of record.



Wedge by Color View In this view, the style-colors assigned to the wedge are rolled up to the color (Emerald Green) and color family (Green) level, compared to color goals as well as to last year and to Endeca search results (where available).

Figure 6–27 Wedge by Color View

Wedge by Customer View In this view, the style-colors assigned to the wedge (and their attributes) are rolled up to the customer segment level. Each style or style-color's attributes are compared to the product attributes definitions (price, silhouette, and so on) of each customer segment. If selected product attributes are desirable for that customer segment, then the style is counted for that segment along with its sales, margin, and so on.

A common way to use this view is: Typically, Customer Segment A generates 20% of Class 10's sales, but currently only 15% of my assortment's sales represent styles or style-colors appropriate for Customer Segment A. This same analysis can also be based on the number of styles and margin.

Figure 6–28 Wedge by Customer View



Sister Look Wedge by Attribute View This is the same view as the Wedge by Attribute but, this view shows the Sister Look to the look being assorted.

Figure 6–29 Sister Look Wedge by Attribute View

Sister Look Wedge by Color View This is the same view as the Wedge by Color but, this view shows the Sister Look to the look being assorted.

Figure 6–30 Sister Look Wedge by Color View

Sister Look Wedge by Customer View This is the same view as the Wedge by Customer but, this view shows the Sister Look to the look being assorted.



Figure 6–31 Sister Look Wedge by Customer View

Step 5 - Time Phased ViewOnce the buyer has created a style-color level assortment in the Fill the Wedge step, the Time Phased View step is used to review the assortment pictorially (in the form of product images), with style-colors organized based on a performance metric. This facilitates an image-based review of the assortment plan being created, which can help to make a buyer's job more efficient. After reviewing the assortment at the style-color level in this view, the buyer can return back to the Fill the Wedge step to make changes to the assortment, as per business requirements.

The style-color level assortment can be viewed at the cluster level and sub-class level.

There are two views available at this step:

■ Time Phased View (by Look): View the style-colors in the assortment, sorted on the basis of a performance parameter, by Look. In the GA version, the style-colors of the products in the assortment are ranked as per their respective buy-quantity for the duration of the Look's time period (Wedge start and end dates). Run the custom menu, Time Phase the Wedge, to sort and arrange the product images (style-colors) as per this ranking in the slot positions.

Note the following about this view:

– The carryover buy quantity from the previous Looks is not considered in the ranking of style-colors.

■ Time Phased View (by Week): View the style-colors in the assortment sorted on the basis of a performance parameter, by Week. In the GA version, the style-colors of the products in the assortment are ranked as per their respective buy-quantity. Run the custom menu, Time Phase the Wedge, to sort and arrange the product images (style-colors) as per this ranking in the slot positions.

Note the following about this view:

– The carryover buy quantity from the previous weeks is not considered in the ranking of style-colors.

– The buy quantity for Wedge duration is considered to rank the product style-colors by week, as weekly buy quantity is not available in a wedge level assortment.



Custom MenuThis step has one custom menu option.

Time Phase the WedgeThis custom menu creates the time-phased view of the wedge, which shows images of the products in the look for the product's active lifetime, and is ordered so that items with the largest buy quantity (WP Buy Qty) are shown on top. Note the following key points:

■ Time Phase Wedge at Style/Look/Cluster level: When viewing the time-phased wedge at this level, the product images of all style-colors carried in the assortment are considered. Style-colors are ranked based on their respective buy quantity (for wedge duration) within the style only and then arranged accordingly in the slot positions. For example, consider Style 1 having 10 style-colors and 5 of these style-colors are carried in the wedge assortment. Then, only these 5 style-colors are ranked using their respective buy quantity. The style-color with the highest buy quantity is placed in slot 1 and the lowest in slot 5.

■ Time Phased Wedge at Sub-Class/Look/Cluster level: When viewing the wedge at this level, all the style-colors carried in the wedge assortment for that sub-class are ranked based on their respective buy quantity (for wedge duration), independent of their style level ranking. Accordingly, the product images depicting style-colors are arranged in the slot-positions, with the style-color with the highest buy quantity taking the first slot and the lowest taking the last slot.

■ Equal Buy quantity for multiple style-colors: In the case of a tie-breaker between multiple style-colors, the following method is used by the application to derive the ranks:

– Internal style-color position order index is used to break the tie between multiple style-colors with the same buy quantity. Internal style-color positions provide the sequence order for the style-color positions, which are loaded into the domain from RMS for most of the hierarchies (such as, product hierarchy) and are random in nature.

– Example: Consider style-color 1 and style-color 2, have the same buy quantity 1500 units. The internal style-color position order index for style-color 1 and style-color 2 is 1 and 2 respectively, then the effective buy quantity is calculated as illustrated below:

* Effective Buy Quantity for style-color 1 = (1 / 100,000 + Buy Quantity) = (0.00001 + 1500)= 1500.00001

* Effective Buy Quantity for style-color 2 = (2 / 100,000 + Buy Quantity)= (0.00002 + 1500) = 1500.00002

* In effect, style-color 2 will have a higher buy quantity, will be ranked higher, and will be placed before style-color 1.

Step 6 - ApproveIn this final step of the Fill the Wedge process, the Buyer decides they have completed assorting the wedges and wants to make it available to other designated users, in particular to the Buyer who is building the Buy Plan or to the Planner building the Item Plan (and to Reporting as well). Some retailers create just a Buy Plan or an Item Plan or both types of plans.

This step converts the Working Plan decisions regarding wedge-level assortments, start/end dates, prices, descriptions, and attributes into Current Plan versions of the



Working Plan measures. The Current Plan versions should be used for external reporting, and so on.

This step can be completed more than once, if the wedge requires additional changes after it has been approved. The Working Plan version overlays the Current Plan version if approved again.


Approve Plan This custom menu copies the Working Plan version of the measures into Current Plan version of the measure and can be rerun whenever Working Plan changes need to be promoted to the Current Plan. This custom menu option is available only in this step.

Approve Wedge ViewIn this view, the Buyer selects the look to be approved, enters any approval notes (optional), and then selects the Approve Plan custom menu option that copies the Working Plan version of the measures into the Current Plan version of each measure.

Figure 6–32 Approve Wedge View



7

Buying Plan 7-1

7Buying Plan

Buying plan is the sixth step in the AP business process.

Buying Plan TaskIn this task, the Buyer builds a Buying Plan based on the assortment created in the Shopping List and Fill the Wedge Tasks. This plan includes time-phased (generally weekly) Sales, Margin, Inventory, and Receipt components. This GA version of the Buy Plan is meant to coexist with a more granular Item Plan. However, when implementing this solution, you can choose to add more detail to this plan to consolidate the Buy Plan and Item Plan processes into a single task.


■ Step 1 - Create Sales Plan

■ Step 2 - Create Receipt Plan

■ Step 3 - Refine Buying Plan

■ Step 4 - Reconcile to Targets


Create the Buying Plan WorkbookTo create the Buying Plan workbook:

1. Select the New Workbook icon in the Buying Plan task.

Table 7–1 Business Roles in Buying Plan

The Buyer Analyst creates and re-trends the Buying Plan.

The Merchandise Planner reviews the Buying Plan in the MFP Review/Refine Buying Plan step of the Buying Plan task. This is an optional step and the Planners can be granted read-only access to the data.

Buying Plan Task


Figure 7–1 Buying Plan Task


2. In the Select Looks page, select the looks to be loaded into the workbook. Click Finish.



Buying Plan Task

Buying Plan 7-3

Step 1 - Create Sales PlanIn this step, the Buyer seeds the sales plan with a sales curve and the total projected sales created in the Shopping List and/or Wedge processes and then revises as necessary. As in the Set Assortment Size steps, there are separate tabs for Brick and Mortar versus Direct sales planning as you may choose to use a different measure set for each type of sales planning: Net Sales versus Gross Sales (Net Sales minus Customer Returns, and so on). Any type of cluster can be planned in either approach. Both approaches result in calculating the Net Sales measures.


■ Sales Parameters Tab:


– Review Wedge View

– Review Sales Curves View

– Define Sales Parameters View

■ Brick & Mortor Sales Tab:

– Refine Sales Plan by Look View

– Review Sales Plan View


– Refine Sales Plan by Look View

– Review Sales Plan View


Seed Parameters For those styles and style-colors that are being launched with this look as opposed to being carried over from a prior look, the Seed Parameters custom menu seeds the total gross sales, returns, start/end dates and cost/price, and so on, from the Wedge workbook. By seeding this through a Custom Menu, you can first seed the measures and then edit the very same measure cells.

Create Sales Once the parameters are set and the Buyer has selected a sales curve that represents the expected sales life of the style and/or style-color (the sales curve can be selected for a Subclass, a Style and/or a Style-color), this custom menu option spreads the total sales over the life of the item using the sales curve. Since this process is completed through a custom menu, the Buyer can adjust the same weekly sales measure cells that are being calculated in the custom menu.

Sales Parameters TabIn this tab, the Buyer creates the Sales Plan by seeding parameters and using the Create Sales custom menu to spread the total life sales of the style-color to the week level with the assistance of a sales curve (that you select).

Review Look View This view shows the start and end dates for each look by cluster in the workbook. The sister and prior looks for each look are also listed.

Buying Plan Task



Review Wedge View This view shows the Buyer, by style-color (and higher) and cluster (and higher), the sales start and end dates, the planned total sales, returns, cost, price, markup, buy quantity, and notes that were created in the Wedge process. These measures may have been seeded from the Senior Buyer's Shopping List in the Wedge process.

The start and end dates here will override the Look start and end dates for a given cluster, and so on.

Figure 7–4 Review Wedge View

Review Sales Curves View In this view, the Buyer can view a library of sales curves from which you can choose for the purposes of seeding your sales plan. Your Central Planning Team likely created these curves.

Figure 7–5 Review Sales Curves View

Buying Plan Task

Buying Plan 7-5

Define Sales Parameters View In this view, the Buyer is able to control the sales seeding process. The Buyer can both review the measures from which seeding occurs (sales, start and end dates, and so on) and select the sales curve to use when seeding the weekly sales plan (Create Sales custom menu option).

Figure 7–6 Define Sales Parameters View

Brick & Mortor Sales TabOn this tab, the Buyer reviews and refines the seeded sales plan. This tab uses a typical Brick & Mortar approach to planning sales with Net Sales versus, on the next tab, the Direct Sales tab that uses Gross Sales leading to Net Sales (Net Sales equals Gross Sales minus Customer Returns). However, you can plan any of your clusters on either tab depending on your preference. You can think of the Brick & Mortar Sales tab as the Net Sales method and the Direct Sales tab as the Gross Sales method.

Refine Sales Plan by Look View In this view, plan, review, and edit the seeded sales plan at the style-color (or higher), cluster (or higher) and look (or higher) level. This view uses the Brick & Mortar or Net Sales method, but you can plan any and all of your clusters with this method, if you wish.

Buying Plan Task


Figure 7–7 Refine Sales Plan by Look View

Review Sales Plan View In this view, view the seeded and edited sales plan at the style-color (or higher), so without the Looks being in the way. This view summarizes all of the looks and removes the Look hierarchy from the view. This view uses the Brick & Mortar or Net Sales method, but you can plan any and all of your clusters with this method, if you wish.

Figure 7–8 Review Sales Plan View

Direct Sales TabOn this tab, you review and refine the seeded sales plan. This tab uses a typical Direct (Sites, Applications, and so on) approach to planning sales with Net Sales equals Gross Sales minus Returns versus, on the prior tab (Brick & Mortar Sales), that uses Net Sales without any upstream calculations. However, you can plan any of your clusters on either tab depending on your preference. You can think of the Brick & Mortar Sales tab as the Net Sales method and the Direct Sales tab as the Gross Sales method.

Refine Sales Plan by Look View In this view, plan, review, and edit the seeded sales plan at the style-color (or higher), cluster (or higher) and look (or higher) level. This view

Buying Plan Task

Buying Plan 7-7

uses the Direct or Gross Sales method, but you can plan any and all of your clusters with this method, if you wish.

Figure 7–9 Refine Sales Plan by Look View

Review Sales Plan View In this view, view the seeded and edited sales plan at the style-color (or higher) and cluster (or higher). This view summarizes all of the looks and removes the Look hierarchy from the view. This view uses the Direct or Gross Sales method, but you can plan any and all of your clusters with this method.

Figure 7–10 Review Sales Plan View

Step 2 - Create Receipt PlanNow that the sales plan is created, you can create a receipt and inventory plan. In this step, you update key inputs seeded from the Shopping List and Wedge steps (Buy quantities and sell-thru % and so on) and select lead and lag times, and so on, that are used to seed a receipt plan. Then, you can review and edit the receipt and inventory plan as needed.


Buying Plan Task


■ Receipt Parameters Tab:

– Receipt Parameters View

■ Receipt Plan Tab:

– Refine Receipt Plan by Look View

– Review Receipt Plan View


Create Receipts This custom menu seeds the receipt plan based on the parameters that you have seeded/edited. It is a custom menu option so that you can both seed and edit the same measure cells (and use different logic for seeding versus editing).

Receipt Parameters TabIn this tab, update key inputs seeded from the Shopping List and Wedge steps (Buy quantities and sell-thru percentage and so on) and select lead and lag times, percentage of buy covered by each receipt, and so on, that are used to seed a receipt plan.

Receipt Parameters View This is the only view for this tab.

Figure 7–11 Receipt Parameters View

Receipt Plan TabOn this tab, review and refine the seeded sales plan.

Refine Receipt Plan by Look View In this view, review and edit the seeded receipt plan at the style-color (or higher), cluster (or higher) and look (or higher) level.

Buying Plan Task

Buying Plan 7-9

Figure 7–12 Refine Receipt Plan by Look View

Review Receipt Plan View In this view, review edit the seeded plan at the style-color (or higher) and cluster (or higher). This view summarizes all of the looks and removes the Look hierarchy from the view.

Figure 7–13 Review Receipt Plan View

Step 3 - Refine Buying PlanIn this step, the Buyer reviews the end-to-end Buying Plan (sales, margin, inventory and receipts) and refines the plan. The Buyer can always go back to the prior steps and reseed the plan, if key assumptions about the plan change (start and end dates, major sales or events shift during the life of the style-colors, and so on).


■ Review Buy Plan Tab:

– Buying Plan by Attribute View

– Buying Plan by Color View

Buying Plan Task


■ Brick & Mortar Tab:

– Refine Buying Plan View

■ Direct Buy Plan Tab:

– Refine Buying Plan View

■ Inventory Review Tab:

– Inventory Review View

Review Buy Plan TabOn this tab, the Buyer can roll up the buy plan to the attribute or color levels and compare the buy plan's sales and margin working plans to last year and to the plan approved in the Wedge step (that was seeded from the Shopping List).

Buying Plan by Attribute View In this view, roll up the buy plan to the attribute level and compare the buy plan's sales and margin working plans to last year and to the plan approved in the Wedge step (that was seeded from the Shopping List).

Figure 7–14 Buying Plan by Attribute View

Buying Plan by Color View In this view, the Buyer can roll up the buy plan to the color level and compare the buy plan's sales and margin working plans to last year and to the plan approved in the Wedge step (that was seeded from the Shopping List).

Buying Plan Task

Buying Plan 7-11

Figure 7–15 Buying Plan by Color View

Brick & Mortar TabOn this tab, the Buyer can review and refine the full Buying Plan (Sales, Margin, Returns, Receipts, and Inventory) and compare it to last year and the Current Plan version (last approved version of the Buying Plan).

This view uses the Brick & Mortar or Net Sales method, but you can plan any and all of your clusters with this method, or use the Direct or Gross Sales method in the next tab.

Refine Buying Plan View This is the only view on this tab.

Figure 7–16 Refine Buying Plan View

Direct Buy Plan TabIn this view, the Buyer can review and refine the full Buying Plan (Sales, Margin, Returns, Receipts and Inventory) and compare it to last year and the Current Plan version (last approved version of the Buying Plan).

Buying Plan Task


This view uses the Direct or Gross Sales method, but you can plan any and all of your clusters with this method, or use the Brick & Mortar or Net Sales method in the next tab.

Refine Buying Plan View This is the only view on this tab.

Figure 7–17 Refine Buying Plan View

Inventory Review TabThis tab shows an in-depth, time-phased view of the Receipts and Inventory component of the Buy Plan, regardless of whether you use the Brick & Mortar or Direct or both sales methods for planning.

The Buyer can compare their current Working Plan to Last Year (likely at an aggregate of the Product hierarchy) and to the last Current Plan version of the plan.

Inventory Review View This is the only view on this tab.

Figure 7–18 Inventory Review View

Buying Plan Task

Buying Plan 7-13

Step 4 - Reconcile to TargetsThis step has one view.

Reconcile to PoC Targets ViewIn this view, you can reconcile the Working Plan version of the Buy Plan to the following:

■ The last approved version of the Buy Plan (CP or Current Plan)

■ The Location Plan loaded from an external Location Plan and/or created in the Administrative section of AP:

– This plan may have been created by spreading the Merchandise Financial Plan down to the store, site, app, and so on level

– This spread-down plan has been rolled up to the cluster level from the store, site, or application level.

Figure 7–19 Reconcile to PoC Targets View

Step 5 - ApproveIn this final step of the Buying Plan process, the Buyer decides they have completed creating or updating the Buying Plan and want to make it available to other designated users, in particular to their Senior Buyer or to the Planner building the Item Plan (and to Reporting). Some retailers create just a Buy Plan or an Item Plan or both types of plans.

This step copies the Working Plan sales, margin, inventory, and receipt measures into the Current Plan versions of the Working Plan measures. The Current Plan versions should be used for external reporting, and so on.

This step can be completed more than once, if the Plan requires additional changes after it has been approved. The Working Plan version overlays the Current Plan version if approved again.


Buying Plan Task


Approve Plan This custom menu option copies the Working Plan version of the measures into Current Plan version of the measure and can be rerun whenever Working Plan changes need to be promoted to the Current Plan.

Approve ViewIn this view, the Buyer selects the look to be approved, enters any approval notes (optional), and selects the Approve Plan custom menu option to copy the Working Plan version of the measures into the Current Plan version of each measure.

Figure 7–20 Approve View

8

Optimize Size/Pack Allocations 8-1

8 Optimize Size/Pack Allocations

Size/pack allocation is the seventh step in the AP business process. There are two different approaches to managing size and prepack Profiles in AP and they follow very similar processes. The only difference is that in the Optimize AP version, the Buyer is selecting the size and prepack profiles to be used while in the Optimize SPO version, the size and prepack selections were made using an external solution such as Oracle Retail Size Profile Optimization (SPO) and loaded into AP. Both approaches finish with allocating the Buy Plan down to the size or prepack and store/site/application (Point of Commerce) level.

This process step includes the following task:

■ Optimize AP Size/Pack Allocations Task

The choice of Optimize AP or Optimize SPO depends on whether the Buyer must select the size and prepack profiles or use the profiles loaded from an external source.

Optimize AP Size/Pack Allocations TaskIn the Optimize AP version of this task, the Buyer selects size and prepack profiles for the style-colors added to the assortment. Then, the Allocator (or the Buyer, if desired) runs the Allocation algorithm to spread the Receipt Plan from the Buying Plan down to the size and prepack at the store/site/application (Point of Commerce) level from the style-color and cluster level.

These allocations can then be exported and shared with an allocation execution solution.


■ Step 1 - Review Buying Plan

■ Step 2 - Review & Apply Size Profiles

■ Step 3 - Optimize Allocations

Table 8–1 Business Role in Optimization Size/Pack Allocations

The Buyer Analyst makes size and pack decisions.

The Allocator allocates the Buy Plan down to the size/pack and store/site/app (Point of Commerce) level.

Optimize AP Size/Pack Allocations Task


■ Step 4 - Approve Allocations

Create the Optimize AP Size & Pack Allocations WorkbookTo create the Optimize AP Size & Pack Allocations workbook:

1. Select the New Workbook icon in the Optimize AP Size & Pack Allocations task.

Figure 8–1 Optimize AP Size & Pack Allocations Task





Step 1 - Review Buying PlanThere is one view in this step.



Buying Plan by PoC ViewIn this view, the Buyer can review the Buying Plan that was created for this Look in the Buying Plan Task. It is included here to refresh the Buyer’s memory and ensure the allocations created in this workbook align with the Buying Plan. The allocation algorithm uses the Buying Plan.

Figure 8–3 Buying Plan by PoC View

Step 2 - Review & Apply Size ProfilesIn this step, the Buyer can create allocations of the initial receipt down to the style-color-size level for each store, site, and application.


Apply Size Profiles In this custom menu, the CP Receipt U measure from the Buying Plan is allocated by style-color down to the store, site, and application level (PoC) by size based on the size profile assigned to each style-color and store, site, or application (PoC).


■ Size Profiles Tab:

– Review Size Profiles View

■ Attribute Code & Size Range Tab:

– Review Attribute Codes & Size Ranges View

■ Receipts by Size Tab:

– Review Receipts by Size View

Size Profiles TabThere is one view on this tab.

Review Size Profiles View In this view, the Buyer is able to review the pool of size profiles that can be assigned to style-colors in this Look. The profiles include the typical sales penetration by size, down to the store level, if they were created or loaded that level. The profiles were either loaded from an external solution or were created in the Define Size Profiles and Pack Task.



Figure 8–4 Review Size Profiles View

Attribute Code & Size Range TabThere is one view on this tab.

Review Attribute Codes & Size Ranges View In this view, the Buyer can select the size profile to be used for each style-color. If the Buyer is using a solution such as SPO to optimize Size Profile assignment, this step will be completed in that solution and the results are just reviewed here.

Figure 8–5 Review Attribute Codes & Size Ranges View

Receipts by Size TabThere is one view on this tab.

Review Receipts by Size View After running the Apply Size Profiles custom menu, the Buyer is able to review the allocations by style-color-size down to the store, site, and application level. The Buyer can choose to change the Size Profile assignment and rerun the custom menu, or choose to manually adjust the results.



Figure 8–6 Review Receipts by Size View

Step 3 - Optimize AllocationsIn this step, the Buyer can create allocations of the initial round of receipts by prepack down to the store, site, or application level.


■ Prepack Definitions Tab:

– Review Prepack Eligibility View

– Review Prepack Definitions View

■ Optimize Allocations Tab:

– Perform Prepack Optimization View

■ Receipts by Prepack Tab:

– Receipts by Prepack View

– Loose Receipts (Eaches) View

– Comparison to Expected Receipts View


Apply Prepack Definitions In this custom menu option, the prepack optimization algorithm allocates the initial receipt by prepack down to the store, site, and application level.

Prepack Definitions TabOn this tab, the merchant is able to view the prepacks (and their composition) that can be used in the assortment. They were created in an external solution and loaded into AP or they were created in the Administrative section.

Review Prepack Eligibility View In this view, the merchant is able to view/edit the prepacks that are active down to the style-color. They may have been assigned and loaded from an external solution.



Figure 8–7 Review Prepack Eligibility View

Review Prepack Definitions View In this view, you can view/edit the number of each size that are available in a prepack. For example, prepack xyz may contain 12 total units:

■ 2 units of size Small

■ 4 units of size Medium

■ 4 units of size Large

■ 2 units of size X-Large

Figure 8–8 Review Prepack Definitions View

Optimize Allocations TabThere is one view on this tab.

Perform Prepack Optimization View In this view, the merchant completes two actions:

■ Select, by checking a Boolean/check-box, the subclass and PoC combinations where prepack allocations should be created.

■ Run the Perform Optimization custom menu.



Figure 8–9 Perform Prepack Optimization View

Receipts by Prepack TabOn this tab, the Buyer is able to review the results of the optimization of the initial round of receipts down to the prepack and store, site, and application level.

Receipts by Prepack View In this view, you review the total allocated receipt units by prepack to each PoC.

Figure 8–10 Receipts by Prepack View

Loose Receipts (Eaches) View In this view, the user is able to review the remaining receipt units that were not allocated as prepacks. This occurs when the prepacks contain a quantity into which the buy quantity in units cannot be divided without a remainder.

For example, if the prepack contains 12 units and the receipt in units is 148, the allocation algorithm is able to allocate 12 prepacks of 12 units and 4 units (as 12 multiplied by 12 equals 144) would be considered loose receipt units that would be visible in this view.



Figure 8–11 Loose Receipts (Eaches) View

Comparison to Expected Receipts View In this view, you compare the total allocated receipts by prepack to the receipt plan in units from the Buying Plan. Some variance measures are included.

Figure 8–12 Comparison to Expected Receipts View

Step 4 - Approve AllocationsIn this step, the Buyer approves the settings and allocations, copying them from Working Plan versions to Current Plan versions. The Current Plan versions should be made available for reporting and execution of the allocations.


Approve In this custom menu, the process copies the settings and allocations, from the Working Plan versions to Current Plan versions for the Looks selected by the Buyer.

Approve Allocations ViewIn this view, the Buyer selects the Looks to be approved and enters any relevant notes prior to running the Approve custom menu.



Figure 8–13 Approve Allocations View



9

In-Season/Historical Analysis 9-1

9In-Season/Historical Analysis

In-season/historical analysis is the eighth step in the AP business process. This process step includes the following tasks:

■ In-Season Analysis Task

■ Historical Analysis Task

In-Season Analysis TaskThis task includes one step with a number of tabs to support the various types of analysis required in-season. It is expected that the Buyer has re-trended the Buying Plan before using the Extend-Markdown-Drop functionality contained in this task.

Create the In-Season Analysis WorkbookTo create the In-Season Analysis workbook:

1. Select the New Workbook icon in the In-Season Analysis task.

Table 9–1 Business Role in Size/Pack Allocation

The Senior Buyer and Buyer Analyst review in-season trends, make extend/markdown/add choices, review plans and trend/historical performance.

The Merchandise Planner reviews sell-thru and Buy Plan changes.

The Allocator executes the inventory strategy.

In-Season Analysis Task


Figure 9–1 In-Season Analysis Task





In-Season Analysis StepThis step has the following tabs and views:



■ Extend/Markdown Drop Tab:

– Extend - Markdown - Drop Analysis View

– Attribute Filtering View

– Metric Scoring View

■ Sales & Margin Tab:

– Sales & Margin Analysis View

– Attribute Filtering View

■ Look Tab:

– Look Performance by Attribute View

■ Cluster Tab:

– Cluster Performance by Attribute View

■ Curves Tab:

– Planned vs. Actual Sales Curves View

■ Size Breaks Tab:

– Broken Size Sell-Thru Analysis View

– Set Sell-Thru Risk Factor View

■ Color Break Tab:

– Broken Color Sell-Thru Analysis View

– Set Sell-Thru Risk Factor View

Extend/Markdown Drop TabOn this tab, the Buyer executes the in-season process of Extend (carry the style or style-color longer), Markdown (begin to mark the item down earlier than planned) and Drop (Exit the item earlier than planned. This could be due to faster or slower sales than planned).

This tab includes a variety of measures that enable three important areas of analysis for the Buyer:

1. Where am I trending to end a Look in terms of sales, margin and inventory for a given Subclass?

2. What styles or style-colors and/or clusters are contributing to the good or bad trended performance?

3. What actions do I need to take and can I take to correct the trends that are pointing to any negative end of Look projections (even selling better than plan early in the life-cycle can be a problem if that leaves me without any inventory of the desirable items later).

It is expected that the Buyer has re-trended the Buying Plan before using the Extend-Markdown-Drop functionality.

Extend - Markdown - Drop Analysis View In this view, the Buyer views the trending positions for each style-color in the look and sees projected ending inventory positions and a recommendation for what can be done. There are several possible recommendations:



Recommendation Description

New ■ The style or style-color is too new to recommend anything (too few days of sales have occurred).

■ Newness is based on the number that the Buyer enters into the Days = New scoring measure. If the number of selling days for the style or style-color is less than the number in that measure, the recommendation will return as New.

Move Up Exit Date ■ This recommendation will return if the style or style-color is no longer new but its sell-thru to date is well ahead of plan (greater than the Sell-Thru % Too High scoring measure) that the only recourse is to exit it earlier than planned.

■ By exiting it earlier, the Buyer can replace it with a style or style-color with more available inventory so that total sales for the Collection or Look, and so on, do not slow down due to the lack of inventory of a hot selling style of style-color.

Buy Qty/Order Cancel

■ This recommendation will return if there are buy quantities or open orders (orders that are not fully received against), its sell-thru to date is far behind plan (if less than the Sell-Thru % Too Low scoring measure) meaning it is too late to change the course of sales for the balance of the life of the style or style-color.

■ Too late to change is based on the number of days entered into the (Days = Late scoring measure).

Start Clearance Now ■ This measure will return if the style or style-color meets all of the requirements of the prior recommendation, except that there are no remaining buy quantities or open orders, markdowns have already begun and the Clearance Start Date is in the future (beyond today).

■ This recommendation means the Buyer should move up the clearance date as the style or style-color's sell-thru trajectory is not going to recover to the point that delaying deeper mark down activity will cause more margin harm later.

Extend Selling Period ■ This is the counterpart to Start Clearance Now with all of the same triggers except that no Permanent Markdowns have been taken.

■ This message recommends the Buyer extend the full price selling period and add some temporary markdowns as it is not yet too late to try smaller markdowns with hopes of delivering better sell-thru prior to the deeper markdowns found in Clearance.

No Change ■ This recommendation returns if the item has enough sales history to no longer be considered new and is selling well enough to not warrant any changes to the buy quantities, pricing strategy, or clearance start/exit dates.



Figure 9–3 Extend / Markdown / Drop Analysis View

Figure 9–4 Style-Color Pop-up Window Accessible in the Extend/Markdown/Drop Analysis View

Attribute Filtering View The measures in this view can control the styles and style-colors visible in the Extend / Markdown / Drop view.



Figure 9–5 Attribute Filtering View

Metric Scoring View The measures in this view control the recommendation calculation in the Extend / Markdown / Drop view. The previous chart explains their use.

Figure 9–6 Metric Scoring View

Sales & Margin TabThis tab has one view.

Sales & Margin Analysis View In this view, the Buyer views re-projected (from their Buying Plan) Working Plan version sales, margin, receipts, and inventory performance versus their Current Plan Version of the Buying Plan versus the Merchandise Financial Plan (that was spread down to the cluster level).

Figure 9–7 Sales & Margin Analysis View

Attribute Filtering View The measures in this view control the styles and style-colors visible in the Sales & Margin Analysis view.




Look TabThis tab contains one view.

Look Performance by Attribute View In this view, the Buyer can view each look's actual to date sales and margin performance by cluster (plus some key Current Plan versions of the Buying Plan).

Figure 9–9 Look Performance by Attribute View

Cluster TabThis tab has one view.

Cluster Performance by Attribute View In this view, the Buyer can review each cluster's actual to date (across all look's in the workbook) sales and margin performance (plus some key Current Plan versions of the Buying Plan) by product attribute.



Figure 9–10 Cluster Performance by Attribute View

Curves TabThis tab has one view.

Planned vs. Actual Sales Curves View In this view, the Buyer can compare the sales curve used to seed the Buying Plan versus actuals.

Figure 9–11 Planned vs. Actual Sales Curves View

Attribute Filtering View The measures in this view control the styles and style-colors visible in the Planned vs. Actual Sales Curves view.




Size Breaks TabThis tab shows analysis regarding actual size breaks at an aggregate of Store, Site, Application (Points of Commerce). Once a few of a style-color's sizes begin to run out of stock (and fulfilling the definition of being broken on sizes), sales begin to taper off more dramatically than based solely on the ratio of sizes out of stock. The display will begin to look ragged and the customer faces the issue of not wanting to buy the last item on the rack at full margin (as it was rejected by everyone else). This view helps to keep tabs on any looming size breaks.

Broken Size Sell-Thru Analysis View This view shows the size break analysis.

Figure 9–13 Broken Size Sell-Thru Analysis Curves View

Set Sell-Thru Risk Factor View The measure in this view determines the level of sell-thru required to meet the definition of a size break.

Figure 9–14 Set Sell-Thru Risk Factor View

Historical Analysis Task


Color Break TabThis tab shows analysis regarding projected and actual color breaks at an aggregate of Store, Site, Application (Points of Commerce). Once a few of a style's colors begin to run out of stock (and fulfilling the definition of being broken on colors), sales begin to taper off more dramatically than based solely on the ratio of colors out of stock. The display will begin to look ragged and Customer faces the issue of not wanting to buy the last item on the rack at full margin (as it was rejected by everyone else). This view helps to keep tabs on any looming color breaks.

Broken Color Sell-Thru Analysis View This view shows the color break analysis.

Figure 9–15 Broken Color Sell-Thru Analysis Curves View

Set Sell-Thru Risk Factor View The measure in this view determines the level of sell-thru required to meet the definition of a color break.

Figure 9–16 Set Sell-Thru Risk Factor View

Historical Analysis TaskThis task includes one step with a number of tabs to support the various types of analysis required for historical analysis (the Buyer can view past, present and future time periods in these views).



These views are designed to give the Buyer and team better visibility into the trends that impact the assortment. These trends could manifest themselves in terms of product attributes, colors, customer segment preferences, how it is sold in direct channels (there are more nuanced measures available in the direct channels), and preferences for where the style-color was sold versus where it was fulfilled.

Create the Historical Analysis WorkbookTo create the Historical Analysis workbook:

1. Select the New Workbook icon the Historical Analysis task.

Figure 9–17 Historical Analysis Task


2. Select the Styles (or higher), Weeks (or higher), and the PoCs (stores, sites or applications and higher) to be loaded into the workbook. Click Finish.





Historical Assortment Analysis StepThis step has the following tabs and views:

■ Fulfillment Tab:

– Fulfillment Metrics View

■ Direct Tab:

– Direct Performance Metrics View

■ Product Attributes Tab:

– Performance by Attribute View

■ Customer Tab:

– Customer Sales Analysis View

– Customer Attributes View


Fulfillment TabThis tab has one view.

Fulfillment Metrics View In this view, the Buyer can view the sales and margin that originated in a site, store, or app (or at an aggregate) and what percentage was fulfilled by each fulfillment type. For example, Mobile App X sold 500 units of sweaters:

■ 40% were picked up by a customer in a store

■ 40% were delivered to the customer’s home

■ 20% were delivered to someone other than the paying customer (as a gift)



There are some sample fulfillment options in the GA version, but the Buyer can tailor it to meet the fulfillment options.

Figure 9–19 Fulfillment Metrics View

Direct TabThis tab has one view.

Direct Performance Metrics View The Buyer can view the steps involved in the following:

■ Making a Direct Channel (web, mobile, social) purchase and determine how close they were to getting a sale. For example, if a style-color is missing its plan but leads in abandoned baskets, then it may not be the item itself, but the price or the shipping cost, and so on, as opposed to another item with equally poor sales that is put into baskets at a much lower rate (where the item is less desirable).

■ Fulfilling and returning a Direct Channel (web, mobile, social) purchase and determining if there was a fill rate or quality issue (leading to higher than normal returns) for the style-color (or higher).

Figure 9–20 Direct Performance Metrics View



Product Attributes TabThis tab has one view.

Performance by Attribute View In this view, the Buyer can view historical (TY and LY) and Buy Plan Working Plan and Current Plan versions of sales, margin, returns, receipts and inventory by Product Attribute (and Endeca search results if available). This view can help identify product attribute based trends and the success of those trends, for example, evolving customer preferences by silhouette, color family, price tier, and so on.

Figure 9–21 Performance by Attribute View

Customer TabIn this tab, the Buyer can view the customer segment level expectations and performance of each assortment.

The Buyer can evaluate how various trends, price tiers, and so on, have performed with each customer segment over time by comparing the current year to the prior year performance to target. The Buyer also has the ability to use this recent and prior year trend to adjust the product attribute characteristics most attractive to each customer segment. This is then used when planning future assortments, when the Shopping List and Wedge are rolled up by customer segment.

Customer Sales Analysis View In this view, the last year, recent trend, and target performance are shown by customer segment with intersections of Product, Time, and Points of Commerce (sites, applications, and stores).



Figure 9–22 Customer Sales Analysis View

Customer Attributes View In this view, the Buyer can use the prior view to help tailor the attributes appropriate to each customer segment. These attribute choices are then used when rolling up the future assortments in the Shopping List and Wedge processes.

Figure 9–23 Customer Attributes View

Product Attributes View This view shows the product attributes for each style-color that were set up in the Shopping List and Fill the Wedge tasks (or loaded from an external source). These product attributes are compared to the desired attributes of each customer segment, to determine whether a given style-color is applicable to that segment.


