Markdown Planning 

Purpose

This business process enables you to plan markdowns for articles in the course of a season.

At the beginning of the season, you can plan markdowns for fashion merchandise to apply at particular intervals. It is of interest to know what quantities are sold at what price and when, and what the results of the markdown will be (for example reduced margin, achievable margin). The markdown planning functions enable you to simulate this data and subsequently activate it.

You can also carry out a target/actual comparison for past price phases, so that you can adjust new price phases accordingly if, for example, you notice considerable differences.

At the end of the process you have created a markdown plan and can then create pricing conditions.

Process Flow

  1. You enter the markdown type.
  2. You create a worklist to plan the markdowns.
    You can select parameters to extend the worklist.
  3. You assign the markdown plan a name and unique number. You check the basic markdown rule, create the start date for the first price, the planned sales quantity, and the final price for each article in the markdown plan.
    You can define the initial stock and choose whether price points are to be adjusted.
  4. For each article price phase, you check the start date, the price change as a percentage of the original price, the planned sales quantity and the share of the quantity sold.
    You can change the final price for each article price phase.
  5. You test the price calculation and deal with errors, if necessary.
  6. You activate one or more article price phases.
  7. You save the markdown plan.

Notes and Remarks

For information on markdown planning, please refer to the Season section of the implementation guide (IMG).