Here is the step-by-step guide to preparing an OTB plan.
It starts with creating a sales plan. This is perceived as one of the most important decisions a retailer makes. The question that retailers need to ask themselves here is - how much am I going to sell this month with the stock that I currently have?
Once you have your sales plan ready, it’s time to work on the inventory plan. At this point, you need to figure out how much inventory is required to meet the sales for the upcoming month. Don’t forget to track any markdowns or price reductions as this also reduces the stock in hand.
The next step in this process is to build the inventory receipt plan which looks at how much inventory is needed to have everything from sales to markdown covered to finish with the planned ending inventory.
With a well-thought-out OTB plan, you can boost your sales, lower your markdowns and better manage your inventory levels.
