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Merchandising (Key Elements to Merchandising (production planning with…
Merchandising
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Product Selection
Buyers
- Responsible for leasing with design team & briefing suppliers
- negotiate initial cost of prices of the product
Merchandisers
- check historic numbers to validate potential product inclusion
- forecasting potential demand to aid the suppliers costing process
Supplier Negotiations
Buyers
- negotiate best prices for the products
- locking down type of cost
Merchandisers
- supports negotiation -> by estimating seasons sales
- negotiating best possible lead time
Roles in Pricing
- Buyer
- does competitive shopping -> reference in firms pricing strategy
- understand pricing hierarchy
Merchandiser
- looks at the sales history of the item to suggest price at which best profit
- help discussion to arrive in final price
Range Completion
Buyer
- check range has correct mix of newness, feels design theme
Merchandiser
- check that will generate enough sales
- forecast markdown spend
Supplier Management
Buyer
- set & negotiate payment terms, take in account -> finance strategy, moral stance, supplier size
Merchandiser
- agree on delivery terms, time, frequency and consolation terms
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Improve Lead times, decrease product range
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Promotion
- together -> decide appropriate days
Buyer
- negotiate supplier funding
Merchandiser
- choose the products
- do delivery business
Markdowns
Buyer & Merchandiser
- negotiate with supplier
Merchandiser
- decided which products should be exited judging from performance
- estimate markdown price
Sales Reporting
Merchandiser
- Report Meekly on sales & margin performance vs last year, budget & forecast
- use insights to explain performance
Buyers
- analyse competitor activity -> help explain performance
Buyers & Merchandisers
- propose actions
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Merchandising - right stock, in right place, at right time
- glue that holds supply chain together
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