Retail surgery: What should I consider when integrating merchandise planning?

There are several fundamental factors to consider, and it’s important to build strong foundations as many retailers struggle to get back into profit in 2012. “The ramifications of the increasing popularity of online, mobile and social retail channels are huge for merchandise planners,” says Charlotte Kula-Przezwanski, global enterprise practice leader at software supplier Torex. “The key challenge is that consumers don’t distinguish between the channels: they see one brand with multiple contact points and they expect consistency.”

So what are the imperatives for a retailer to successfully manage a multichannel operation? “Work out which combination of channels is right for your customers, and roll out enterprise-wide, customer-centric strategies consistently, including across franchise partners,” says Kula-Przezwanski. This is a challenge for many merchandise planners, she says. “For many merchandise planners this goes against the grain, because different channels have been managed in silos.”

A successful multichannel merchandise planning strategy will cater to customers’ expectations of consistent product availability and pricing. It will also stimulate a fresh business culture that will hopefully give you an edge.

Merchandise planners need to centralise their operations to ensure that they achieve a unified, reliable customer experience and maintain a strong brand image.

“Planners should collaborate and synchronise between channels to understand trends, maximise availability where the stock is needed and consolidate the supply chain order management,” says Kula-Przezwanski. “There is a need to understand the market’s big picture as well as identify specific cross-channel causes and effects.”