One rule: Putting the right stock at the right place at the right time

Buying
 One of the most crucial decision of the year
 Determines the right stock for the stores

Current process
The current buying process is facilitated with total four kinds of analysis.

1. Store wise and Month wise sales

This sheet tells us about the monthly breakdown of various factors for the upcoming year and projected
sales for SS and AW season. Following are the factors considered in the sheet:
a. Budget
b. Markdown %
c. Month wise sales trend %
d. Gross profit %
e. Gross sales at first intake
f. COGS- cost of goods sold
g. Gross profit
h. Net sales
2. Store split- department wise
The minimum stock needed to meet the budget category wise is included in the sheet. This sheet is to
cross check the OTB numbers. Following are the data considered in the sheet:
a. Contribution category wise 2019, 20 and derived for the year 2021
b. Similarly, FW20 data is considered to manually calculate the contribution for FW21
c. Overall requirement for the buying
d. To buy in each category including the 6 th street
3. OTB
This sheet calculates the required OTB considering the current inventory and SS21 stock.
a. Jan end 2021- Includes the inventory levels through stock cover and upcoming stock in
SS21.
b. Feb-Aug 2021- This calculation takes the projected sales data and calculates the closing
stock for the season.
c. FW21- Based on the projected sales and manually entered stock covers, we calculated
the required OTB for the season.
4. The detailed OTB with depth and split calculation
This is the most important sheet for the buying. In this we go one more level down in the categories.
a. The calculation takes reference of 2019 and 2020 sales data. Taking the closing stocks
for 2020, we calculate the total inward stock in the SS21 season.
b. With projected sales of SS21, we calculate the category contribution for SS21.
Considering the contribution data of SS21, FW19 and FW20, we manually enter the
projected contribution for FW21 season.
c. With the FW21 quantity, and base stock requirement, we calculate the final OTB.
 d. Now we manually enter the options in each category: core, Americana and fashion
based on FW19, FW20 and SS21 data.
e. We manually enter the ordering quantity numbers considering store counts and the
rate of sale as per 2020 sales.
f. The final calculation is of the depth in each store to understand how the stock will be
allocated.

Formulas
1. OTB= (Present stock + Inwards + In transit)- Season forecasted sales- base stock required
2. Stock cover= Inventory value/(Sales*(1-GP%)/26)
3. Closing stock= Inventory + receipts – cost of sale
4. Plan closing stock = Plan cover*Sales*(1-GP%)/30