At Management One, our mission is to deliver merchandise plans that drive your success through:

✅ Increased cash flow
✅ Reduced inventory liabilities
✅ Improved performance metrics

But what truly sets our planning philosophy apart is how we get there. It all starts with opportunity-based, bottom-up planning.

🔍 What Makes Our Planning Approach Different?

Most planning models use a top-down approach—a high-level sales goal is set, then divided down into classes and departments using percent-of-total models.

At Management One, we flip the script. We start at the bottom—at the class level—where the true sales potential lives. We then build up to determine your total plan based on real opportunity, not just projections.

🧠 What Is Bottom-Up Planning—and Why Is It Better?

Bottom-up planning starts at the most detailed level: the class.

For each class, we evaluate:

• 24 months of historical performance

• Optimal seasonal curves and trends

• Inventory levels and sell-through

• Markdown activity

• Cross-client benchmarking

From there, we build ideal performance models for every plannable class. Your total sales volume becomes the sum of real class-level opportunities, not a top-down estimate.

❓ Why Not Just Plan Based on Last Year’s Numbers?

While last year provides useful context, it doesn’t tell the whole story. External variables—late shipments, weather events, market shifts—can skew history.

Also, bias can creep in. Retailers may favor certain classes or believe items only sell during specific times of year, even when data says otherwise.

Instead of simply repeating the past, we blend:

• Historical patterns

• Current performance

• Cross-client market insights

This gives you a smarter, more flexible plan that adapts to your market and your goals.

📊 How We Plan – A Closer Look

Annual Rates by Class

We blend:

• 24 months of history

• Trending data

• Regional demand insights

For example, if denim is trending in your area, but underperforming for you, we’ll build plans to capture that opportunity—starting with focused product mix and vendor adjustments.

📦 Planning Stock Levels

Stock levels are set using:

• Turn performance (historical and real-time)

• Store size and stockroom capacity

• Vendor lead times

Inventory should peak with sales and lean out post-season. We aim to keep inventory fresh and lean, driving full-price sales and reducing liabilities.

🚚 Planning Receiving & Inflows

Inflows are a product of:

• Planned sales

• Planned markdowns

We plan for fresh inventory monthly, with heavier inflow early in the season. Inflows taper as sales slow—and are cut off entirely for seasonal classes with no year-round demand. Everything is managed using optimal stock-to-sales ratios by class.

🔖 Planning Markdowns

We only plan promotional markdowns, based on a percent of sales. These include sales events like “Buy One, Get One 50% Off” designed to drive traffic and lift sales.

We do not plan permanent markdowns, but we encourage marking down poor performers early. This minimizes liabilities and helps you recapture open-to-buy dollars.

💰 Planning Margins

Margins are planned by reviewing:

• Your current markups

• Financial and breakeven goals

If we don’t have inflow data yet, we’ll use comparable clients to estimate until your own data becomes available.

📈 Your Plan = Your Financial Goals

Your merchandise plan is more than just numbers—it’s a reflection of your goals. That’s why we ask you to keep us updated on key changes like your breakeven point or expense structure.

Our team is here to help fine-tune your plan so it always aligns with where you’re headed.

💬 Questions or Updates?

If you have any questions or need to update your goals, don’t hesitate to reach out.
📧 planning@management-one.com

We’re passionate about your success and committed to delivering the insights and strategies to help you