What is Merchandise Plan ?

Merchandise Plan is the plan to assure marketing the :

Right merchandise ;

At the Right Place ;

At the Right Time ;

In the Right Quantities ;

At the Right Price.

Implementing Merchandise Plans

Gathering Information :

After overall merchandising plans are set, more information

about target market needs and prospective suppliers is required

before buying and rebuying merchandise. In gathering data about

the marketplace.a retailer has several possible sources like :

Consumer

Suppliers (Manufacturer & Wholesalers)

Implementing Merchandise Plans

Selecting and Interacting with Merchandise Sources :

The next step is to select sources of merchandise and to interact

with them. Three major options exist :

Company – owned.

Outside, regularly used supplier.

Outside, new supplier.

Implementing Merchandise Plans

Evaluating Merchandise :

Whatever sources is chosen, there must be a procedure to evaluate the

merchandise under consideration. Three procedures

are possible :

Inspection.

Sampling.

Description.
Implementing Merchandise Plans

Negotiating the Purchase :

A retailer negotiates the purchase and its terms. A new

or special order usually results in a negotiated contract, and a

retailer and a supplier carefully discuss

all aspects of the purchase. A regular order or reorder

often involves a uniform contract, since terms are

Implementing Merchandise Plans

Concluding Purchases :

Many medium-sized and large retailers use computers

to complete and process orders(based on EDI),and

each purchase is fed into a computer data bank.

Smaller retailers often write up and process orders

manually, and purchase amounts are added to their

inventory in the same way. Yet, with the advances in

Implementing Merchandise Plans

Receiving and Stocking Merchandise :

The retailer is now ready to receive and handle items. This involves :

Receiving and Storing.

Checking and Paying Invoices.

Figuring on-floor assortments.

Completing transactions.

Arranging delivery or pickup.

Implementing Merchandise Plans

Reordering Merchandise :

Four factors are critical in reordering merchandise :

Order and Delivery Time.

Inventory Turnover.

Financial Outlays.

Inventory versus Ordering costs.

Implementing Merchandise Plans

Re-Evaluating on a Regular Basis :

A merchandising plan should be re-evaluated regularly, The overall

procedure, as well as the handling should be monitored.

Conclusions during this stage become part of the information gathering stage

for future efforts.