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Navigating the Retail Landscape: Demystifying Merchandise Planning and Demand Planning

Reg the confusion between Merchandise planning and Demand planning .
๐——๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐—ฐ๐—ฒ ๐—ฏ๐—ฒ๐˜๐˜„๐—ฒ๐—ฒ๐—ป ๐— ๐—ฒ๐—ฟ๐—ฐ๐—ต๐—ฎ๐—ป๐—ฑ๐—ถ๐˜€๐—ฒ ๐—ฝ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด ๐—ฎ๐—ป๐—ฑ ๐——๐—ฒ๐—บ๐—ฎ๐—ป๐—ฑ ๐—ฃ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด

โ€ข Merchandise planning and
โ€ข Demand planning
are both ways that store owners make sure they have the right things in their store for people to buy.
But they are a bit different.

๐— ๐—ฒ๐—ฟ๐—ฐ๐—ต๐—ฎ๐—ป๐—ฑ๐—ถ๐˜€๐—ฒ ๐—ฝ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด is like picking out the clothes you want to wear.
Store owners want to make sure they have the right clothes in their store for people to buy. So, they plan ahead by choosing which clothes the store will sell.
Deciding how much to charge for the clothes and making sure they have the right amount of clothes in stock.

๐——๐—ฒ๐—บ๐—ฎ๐—ป๐—ฑ ๐—ฝ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด is like making a shopping list for a store.
Store owners want to make sure they have enough of the things that people want to buy. So, they plan ahead by
โ€“ looking at past sales,
โ€“ talking to customers and
โ€“ studying the market to predict what people will want to buy in the future.
They also decide how much they should order and when they should order it, and make sure they can get the products from the supplier on time.

Merchandise planning is about ๐˜„๐—ต๐—ฎ๐˜ ๐˜๐—ผ ๐˜€๐—ฒ๐—น๐—น ๐—ฎ๐—ป๐—ฑ ๐—ต๐—ผ๐˜„ ๐˜๐—ผ ๐˜€๐—ฒ๐—น๐—น ๐—ถ๐˜, while
Demand planning is about ๐—ต๐—ผ๐˜„ ๐—บ๐˜‚๐—ฐ๐—ต ๐˜๐—ผ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ถ๐—ป ๐˜€๐˜๐—ผ๐—ฐ๐—ธ ๐—ฎ๐—ป๐—ฑ ๐˜„๐—ต๐—ฒ๐—ป ๐˜๐—ผ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ถ๐˜.

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