Implementing Merchandise Plans

. (1) Information is gathered about target market needs and prospective suppliers. Data about shopper needs can come from customers, sources of supply, personnel, competitors, and others. A want book (want slip) is particularly useful. To acquire information about suppliers, the retailer can talk to prospects, attend trade shows, visit permanent merchandise marts, and search the Web.

(2) The retailer chooses firm-owned; outside, regularly used; and/ or outside, new supply sources. Relationships may sometimes be strained with suppliers because their goals are different from those of retailers.

(3) The merchandise under consideration is evaluated through inspection, sampling, and/ or description. The choice of method depends on the product and situation.

(4) Purchase terms are set. They may have to be negotiated in their entirety (as with opportunistic buying) or uniform contracts may be used. Terms must be clear, including the delivery date, quantity purchased, price and payment arrangements, discounts, form. of :delivery, and point of transfer. There may also be special provisions.

(5) The purchase can be concluded automatically or manually. In some instances, management approval is needed. The transfer of title can take place as soon as the order is shipped or it may not occur until after the merchandise is actually sold.

(6) Merchandise handling decisions include receiving and storing, price and inventory marking, displays, on-floor assortments, customer transactions, delivery or pickup, returns and damaged goods, monitoring pilferage, and control.

(7) Reorder procedures depend on order and delivery time, inventory turnover, financial outlays, and inventory versus ordering costs.

(8) Both the overall merchandising procedure and specific goods and services need to be regularly reviewed.

Implementing Merchandise Plans