Open to Buy in Your Point of Sale Software
Every retailer should have an inventory requirement plan, preferably an open-to-buy plan. This ensures that a retailer has the right amount of inventory, in the right assortment for the time period being planned. You should set a total amount of inventory you would like to carry in your store and using department and class categories, break down the amount to order and to carry any given time. You need to be disciplined in your purchasing or end up overstocked and facing unnecessary markdowns to free up cash down the road. A good open-to-buy plan is broken down into department, class categories. Never try to control a storeâ€™s inventory down to the item level. It is important to review and adjust the open-to-buy plan as the marketing strategies change within your store.