Plan assortment changes step by step: define a goal, set limits, check stock, approve the purchase, and schedule a results review. For each product, write down exactly what you want to change and which measures you will use to assess the decision.
Before your next order, compare actual sales with the forecast, and the ending stock with the planned level. Use this comparison to review the purchase quantity. Do not treat the initial plan as a mandatory quantity to buy regardless of the results.
Define the goal and review date
Set a specific, measurable, realistic goal with a deadline. Check whether it is achievable within your available budget and product space.
Write down the change you have chosen: add an item, replenish an existing one, or reduce the next purchase. Beside it, note the sales forecast and desired ending stock for the period. Choose a date to review these measures. This lets you decide in advance which results to compare.
Limit purchases by budget and space
Assortment planning involves allocating budget and storage space to each product. Before approving an order, set a total purchasing limit for the selected period and allocate part of that limit to each planned change.
The open-to-buy method applies the principle of setting a purchasing limit for a period. For your plan, record the amount you allow yourself to spend and check every order against that limit. Do not use the mere fact that some budget remains unspent as a reason to make an additional purchase.
Also check where you will store the product. Confirm the delivery time, minimum order quantity, and supplier terms before approving the quantity and order date. If the lot does not fit your budget or available space, revise the planned change.
Check stock before deciding on a quantity
When checking inventory, compare the recorded quantity with a physical count. Do this for the items you plan to purchase. Record any discrepancies and investigate them before making a final decision.
Follow the dependencies between tasks: first obtain a verified stock count, then determine the purchase quantity, and after that approve the order. Do not approve the next step while the previous step’s data still needs clarification.
Keep a short list of decisions. For each item, fill in:
- the product and its verified current stock;
- the planned change and quantity to purchase;
- the allocated budget and storage space;
- the sales forecast and target ending stock;
- the review date;
- actual sales, stock, and the next decision.
Illustrative example: replenishing one item
All figures in this example are illustrative. The owner plans to sell 30 units of a product in four weeks and end the period with 10 units in stock. They allocate up to UAH 3,000 for the purchase. There is enough space for 40 units.
The records show 24 units remaining, while a physical count found 20. For this example, assume the discrepancy was resolved, there will be no other receipts or stock movements, and the purchase price is UAH 100 per unit.
Planned purchase calculation: 30 units for sale + 10 units of ending stock − 20 units on hand = 20 units. The cost is 20 × UAH 100 = UAH 2,000. After delivery, there will be 40 units. Under the example’s assumptions, the quantity fits the budget and space limits.
Suppose 24 units were sold over four weeks and 16 remained. Sales are 6 units below the forecast, and stock is 6 units above the target. Before reordering, the owner should check the reasons for the variance and review the quantity. These figures illustrate the calculation and review process; they do not set a benchmark for other stores.
Review the results before your next purchase
At the scheduled time, compare the forecast with actual sales and target stock with actual stock. Record variances separately for each item. After checking their causes, choose the next action: keep the plan, change the quantity, or postpone the purchase.
You can use the share of a product sold during a period—sell-through rate—to assess stock. This measure is the percentage of stock sold to customers. In the illustrative example, with no other stock movements, 24 out of 40 units were sold, or 60%. Do not use this example to set a threshold for removing a product. Consider the measure alongside your own forecast and goal.
How to set a minimum stock level in Torgsoft for each accounting center
If you plan stock separately for several accounting centers, set a minimum quantity for a specific product at each one. In Torgsoft, you can set a product’s minimum stock level separately for each accounting center. The feature is described on the stock management by warehouse page.
Use the values you set as reference points in your plan: compare them with verified stock and decide whether replenishment is needed. Before ordering, check the budget, available space, and delivery terms again.
Do not treat a set minimum as proof of future demand or as sufficient justification for a purchase. When reviewing results, return to the goal you chose and decide whether to adjust this reference point.
Go back to the previous step