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Open To buy- Retail Merchandising Planning

Swati V Aggarwaal

4.4

Based on 1,858 ratings

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Swati V Aggarwaal

In today's world of uncertainty, when retail across the world is crying, it is important that cash flow of the business is preserved for long term sustainability. One of the best ways to do is to manage the inventory of the business, where maximum cash of the retailers is invested. We can effectively do this using OTB ( open to Buy) management. OTB is a budget that can help retailers know how much they need to buy in order to manage their business effectively. With the help of this technique many retailers can save themselves from the situations of over stocking or under stocking. With the help of this course we aim to educate all retailers or people pursing their career in Retail planning as to how they can simply implement this Open to buy technique and how they can create self managed excel based rolling budgets without spending hundreds of thousand dollars on fancy tools. This course will provide step by step methodology to charter out OTB ( open to buy plan) and manage merchandise optimally.

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What's inside

Learning objective

Open to buy management- increase cash flow for your retail business by planning your merchandise buying better

Syllabus

Introduction

Lecture 2: Why Open to Buy

Lecture 3: What is Open To Buy

Equation of OTB formula and how to use in real world

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Provides a practical approach to inventory management, which is essential for maintaining healthy cash flow in retail businesses

Focuses on creating self-managed Excel-based rolling budgets, which can be a cost-effective alternative to expensive software

Offers a step-by-step methodology for charting out an Open to Buy plan, which helps in optimizing merchandise management

Explores the application of the OTB formula with real-time examples, which enhances practical understanding and application

Teaches how to manage and maintain a real-time OTB budget for business continuity, which is crucial for long-term sustainability

Includes a case study to practice concepts learned, which reinforces understanding and application of OTB techniques

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Reviews summary

Practical otb for retail planning in excel

According to learners, this course offers a highly practical and step-by-step approach to Open To Buy (OTB) planning, essential for retail merchandising and inventory management. Students find the content directly applicable to improving cash flow and avoiding common stocking issues. A significant positive highlighted by many is the focus on creating and using Excel-based tools and templates, which is seen as a cost-effective alternative to expensive software. The course structure is generally well-received, providing clear explanations of the OTB formula and its real-world application. While it provides a strong foundation, some learners might find it focused on fundamental concepts, making it particularly useful for beginners or those needing practical, immediate solutions.

OTB formula and concepts explained clearly.

"The explanation of the OTB formula and its four parts was very clear and easy to understand."

"Concepts were broken down well, making it accessible even if you're new to OTB."

"I finally understand how OTB works and why it's crucial for retail planning."

Directly applicable to retail planning roles.

"This course is a must for anyone in retail merchandising or planning roles."

"Helped me gain practical skills directly applicable to my job in retail."

"I feel more confident discussing and implementing OTB in my professional role after taking this course."

Learn to build useful OTB tools in Excel.

"Loved how the course focuses on building OTB models in Excel, saving costs on fancy tools."

"The Excel template provided is incredibly helpful for immediate use."

"I can now create and maintain my own rolling OTB budget sheet using Excel, which is exactly what I needed."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Open To buy- Retail Merchandising Planning with these activities:

Review Retail Math Fundamentals

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Reinforce your understanding of core retail math concepts to better grasp the OTB formulas and calculations.

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Review formulas for markup, margin, and inventory turnover.
Practice calculating key retail metrics using sample data.

Read 'Retail Buying: From Basics to Fashion'

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Gain a broader understanding of the retail buying process and the role of OTB within it.

View Retail Buying: From Basics to Fashion on Amazon

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Read the chapters related to merchandise planning and budgeting.
Take notes on key concepts and examples.

Build a Basic OTB Template in Excel

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Solidify your understanding of OTB by creating a simple Excel template to track planned and actual purchases.

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Set up columns for planned sales, inventory, and purchases.
Implement the OTB formula to calculate open-to-buy.
Add conditional formatting to highlight potential over- or under-buying.

Four other activities

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OTB Formula Practice Problems

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Improve your speed and accuracy in applying the OTB formula through repetitive practice.

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Solve a series of OTB problems with varying inputs.
Check your answers against a solution key.
Focus on problems where you made mistakes.

OTB Plan for a Small Retail Business

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Apply your OTB knowledge to a real-world scenario by creating a plan for a small retail business.

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Choose a small retail business (real or hypothetical).
Gather data on sales, inventory, and planned purchases.
Develop an OTB plan for the next quarter.
Present your plan and justify your assumptions.

Write a Blog Post on OTB Best Practices

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Deepen your understanding of OTB by explaining best practices to others in a blog post format.

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Research OTB best practices from various sources.
Outline the key points you want to cover.
Write a clear and concise blog post.
Include examples and actionable tips.

Read 'Inventory Management and Control Techniques'

Show steps

Expand your knowledge of inventory management principles and their relationship to OTB.

View Alter Ego: A Novel on Amazon

Show steps

Focus on chapters related to inventory planning and forecasting.
Relate the concepts to the OTB framework learned in the course.

Career center

Learners who complete Open To buy- Retail Merchandising Planning will develop knowledge and skills that may be useful to these careers:

Retail Planner

A retail planner focuses on maximizing profitability by strategically planning merchandise assortments and inventory levels. This course helps build a foundation in understanding and applying Open to Buy (OTB) management, a crucial technique for retail planning. The step-by-step methodology to chart out OTB plans and manage merchandise optimally will be invaluable. The use of OTB formulas in real-time scenarios, managing OTB budgets, and creating rolling reports directly translates to the daily tasks of a retail planner. If you want to become a retail planner, this course is specifically designed to teach retailers or people pursing their career in Retail planning as to how they can simply implement this Open to buy technique and how they can create self managed excel based rolling budgets without spending hundreds of thousand dollars on fancy tools.

See salaries and explore the career path for Retail Planner

Merchandise Allocator

A merchandise allocator ensures the right products are in the right stores at the right time to meet customer demand. This course helps build a foundation in Open to Buy (OTB) management, which is essential for effective merchandise allocation. The ability to create and manage rolling OTB templates, as taught in the course, enables a merchandise allocator to plan and adjust inventory levels across different locations. The step by step methodology to charter out OTB plans and manage merchandise optimally will be invaluable. Understanding how to apply the OTB formula in real-time examples also allows for better allocation decisions. If you wish to become a merchandise allocator, this course can help get you there.

See salaries and explore the career path for Merchandise Allocator

Retail Buyer

A retail buyer is responsible for selecting and purchasing merchandise to meet the needs of the target customer. This course helps build a foundation in Open to Buy (OTB) management, which is directly relevant to the buying process. Understanding how much to buy, as taught in the course, mitigates the risk of overstocking or understocking. The step by step methodology to charter out OTB plans and manage merchandise optimally will be invaluable to a retail buyer. The ability to manage and maintain real-time OTB budgets and create rolling reports also enhances the buyer's decision-making capabilities. Retail buyers should take this course, as it is specifically designed to teach retailers or people pursing their career in Retail planning as to how they can simply implement this Open to buy technique.

See salaries and explore the career path for Retail Buyer

Retail Manager

A retail manager oversees the daily operations of a retail store, ensuring efficient operations and customer satisfaction. This course helps build a foundation in Open to Buy (OTB) management, which is crucial for effective store management. Understanding the equation of the OTB formula and its application in real-world scenarios allows a retail manager to make informed decisions about inventory and sales. The course also teaches how to manage merchandise optimally. The ability to manage and maintain real-time OTB budgets and create rolling reports also enhances the manager's ability to optimize store performance. This course is specifically designed to teach retailers or people pursing their career in Retail planning as to how they can simply implement the Open to buy technique.

See salaries and explore the career path for Retail Manager

Category Manager

A category manager is responsible for the performance of a specific category of products within a retail organization. This role often requires a master's degree. This course helps build a foundation in Open to Buy (OTB) management, which directly impacts category performance. The ability to create and manage rolling OTB templates, as taught in the course, allows a category manager to plan and adjust inventory levels within their assigned category. The step by step methodology to charter out OTB plans and manage merchandise optimally will be invaluable. Understanding how to apply the OTB formula in real-time examples also allows for better category-level decisions. If you wish to become a category manager, this course can help get you there.

See salaries and explore the career path for Category Manager

Entrepreneur

An entrepreneur starts and manages their own business, taking on the risks and rewards of the venture. This course helps build a foundation in Open to Buy (OTB) management, which is essential for managing inventory and cash flow in a retail business. This is especially so when cash flow of the business must be preserved for long term sustainability. Understanding the equation of the OTB formula and its application in real-world scenarios, as taught in the course, allows an entrepreneur to make informed decisions about inventory and purchasing. You can create self managed excel based rolling budgets. The course teaches how to manage merchandise optimally.

See salaries and explore the career path for Entrepreneur

Product Manager

A product manager is responsible for guiding the strategy, roadmap, and feature definition for a product or product line. This course helps build a foundation in Open to Buy (OTB) management. Understanding your role in the product life cycle and learning to plan your merchandise buying better can help you achieve your strategic product goals. Understanding the equation of the OTB formula and its application in real-world scenarios is valuable. The course teachers you how to manage merchandise optimally. The course helps with managing and maintaining real time OTB budget.

See salaries and explore the career path for Product Manager

eCommerce Manager

An ecommerce manager oversees an organization's online sales, customer experience, and digital marketing efforts. This role may require a master's degree. The course helps build a foundation in Open to Buy (OTB) management, which is vital for optimizing inventory and managing cash flow in an online retail environment. The step by step methodology to charter out OTB plans and manage merchandise optimally will be invaluable to an ecommerce manager. Understanding the equation of the OTB formula enables the manager to make informed buying decisions. This course is specifically designed to teach retailers or people pursing their career in Retail planning as to how they can simply implement the Open to buy technique.

See salaries and explore the career path for eCommerce Manager

Inventory Analyst

The role of an inventory analyst involves analyzing inventory levels, forecasting demand, and optimizing stock management to minimize costs and maximize sales. This course may be useful because it helps build a foundation in Open to Buy (OTB) management, which directly addresses inventory control. Understanding the equation of the OTB formula and its application in real-world scenarios is highly relevant to the responsibilities of an inventory analyst. The course helps you create self-managed excel based rolling budgets. The ability to manage and maintain real-time OTB budgets, as covered in the course, contributes to effective inventory analysis and decision-making. The course provides insight into how to manage merchandise optimally.

See salaries and explore the career path for Inventory Analyst

Demand Planner

A demand planner forecasts future demand for products to ensure adequate inventory levels and meet customer needs. This course may be useful because it helps build a foundation in Open to Buy (OTB) management, and the importance of planning your merchandise buying better. Understanding the application of the OTB formula in real-time examples, as taught in the course, allows a demand planner to refine their forecasting models. The ability to manage and maintain real-time OTB budgets, and create rolling reports enhances your forecasting accuracy. A good demand planner is also able to manage merchandise optimally.

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Supply Chain Analyst

A supply chain analyst focuses on optimizing the flow of goods and information across the supply chain to improve efficiency and reduce costs. This course may be useful because it introduces you to Open to Buy (OTB) management, which can impact inventory levels and supply chain decisions. The ability to create and manage rolling OTB templates, as covered in the course, provides a means to better forecast demand and manage inventory within the supply chain. To succeed as a supply chain analyst, understanding the equation of the OTB formula and how to apply it in real-world scenarios contributes to informed decision-making. The course can also help with managing merchandise optimally.

See salaries and explore the career path for Supply Chain Analyst

Business Analyst

A business analyst identifies and analyzes business needs and proposes solutions to improve processes and efficiency. The course may be useful because it provides insight into Open to Buy (OTB) management, a technique used to optimize inventory and cash flow. Learning how to create self managed excel based rolling budgets allows a business analyst to develop solutions for retail businesses seeking to improve their inventory management practices. The ability to identify and address inefficiencies in inventory management helps a business analyst effectively improve a retail client's bottom line. The course teaches you how to manage merchandise optimally.

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Financial Analyst

A financial analyst provides guidance to businesses and individuals making investment decisions. This course may be useful because Open to Buy (OTB) management directly impacts a retail business's cash flow. Understanding how to create self managed excel based rolling budgets and manage inventory effectively, as taught in the course, allows a financial analyst to assess the financial health of a retail company. The ability to analyze OTB plans and their impact on profitability enables a financial analyst to provide informed advice to clients. The course teaches how to manage merchandise optimally.

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Pricing Analyst

A pricing analyst researches, analyzes, and recommends pricing strategies for products or services. This course may be useful for a pricing analyst because Open to Buy (OTB) management can influence pricing decisions. By understanding how to manage inventory effectively, as taught in the course, a pricing analyst can align pricing strategies with inventory levels and sales targets. The course can also help with managing merchandise optimally. Learning about continuity of business and how to manage/maintain real time OTB budget contributes to effective pricing strategies. The course teaches you how to create self managed excel based rolling budgets.

See salaries and explore the career path for Pricing Analyst

Operations Manager

An operations manager oversees the day-to-day activities of an organization, ensuring efficient and effective operations. This course may be useful because it touches on Open to Buy (OTB) management, which can improve a company's operational efficiency. Understanding the equations of the OTB formula and how to use them in real world scenarios, as taught in the course, allows an operations manager to make informed decisions about inventory. You can create self managed excel based rolling budgets. The course teaches how to manage merchandise optimally. The course helps with managing and maintaining real time OTB budget.

See salaries and explore the career path for Operations Manager

Reading list

We've selected 49 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Open To buy- Retail Merchandising Planning.

Microsoft Excel Data Analysis and Business Modeling...

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More than just a basic Excel guide, this book focuses on applying Excel to real-world data analysis and business problems. It's ideal for those looking to deepen their understanding of using Excel for practical applications, including newer features like dynamic arrays and Power Query. is commonly used as a textbook and strong reference for business professionals.

Open To buy- Retail Merchandising Planning

What's inside

Learning objective

Syllabus

Traffic lights

Save this course

Reviews summary

Practical otb for retail planning in excel

Activities

Career center

Reading list

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