Retail Toolkit’s open-to-buy tool is a powerful way to drive sound decision making and inventory purchasing.
In Inventory > Settings, chose Advanced Settings to find Forecast Overwrites.
Leverage sales and inventory data to deliver insight into exactly what and how much you need in specific categories is highly valuable. But what if real-world conditions present opportunities that go against the recommendations on the report?
For example, your store’s Open to Buy (OTB) report might suggest that you fill in $100,000 in inventory in a certain category in the next 90 days to maintain your desired turn rate. However, a company nearby is closing, and they are liquidating products in that category and you may have the opportunity to get $200,000 in inventory for $150,000. You only need $100,000 in goods right now, but you also know you will need more of this product next quarter as well, based on historical OTB reports.
In this situation, your data doesn’t know about this opportunity, only you do. If you made this $150,000 purchase, your OTB report would show that you are overbought by $50,000. In a situation like this, you can leverage RTK’s Forecast Overwrites.
Forecast Overwrites allow you to declare a certain amount of inventory dollars that you intend to spend in a specific category, and how long you intend to sell through that inventory, and give this information to your OTB report. This is your way of telling RTK “trust me on this one”.
RTK’s OTB will then accept the additional inventory and your expectation for how long it will take you to sell through that inventory (sell-through days) and work that into OTB calculations without penalizing you in the report.