Upon entering myotbplan.com for the first time, you will be required to read the program instructions by clicking on “Introduction”. This brings up a complete set of rules for working within the system. They are thorough, yet clear and concise. Your agreement that you have read them allows you to begin setting up your data.
Add Your Store(s)
The first step is to enter your Store Name which appears on the right of the black (main) menu bar. Then choose how your Sales Projections will be entered (using percentages or history) and how your On Order will be entered (by individual order or by department totals if your POS provides that information). Finally, set the Program Month and you’re ready to begin the Setup of your data. NOTE: The quizzical face icon is on every screen. When clicked, information specific to that screen appears. Click again, the screen reappears.
Next, you will enter your Departments. The program comes to you with 30 available departments. More can be purchased if needed, but 30 has proven to be ample for most retailers. The department codes (10 characters) and descriptions (20 characters) will be whatever you choose as the goal is to have the system mirror your store. As you enter the departments, your list will grow on the right of the screen. After the list reaches 14, a scroll bar appears on the right of the list eliminating the need to scroll the entire page. This is true on all of the following screens.
Enter Sales Projections
Sales Projections are planned for the next 12 months in each Department. If by Percentages, your total annual Store Sales will be entered first and then each Department assigned a percentage – all adding to 100%. Then within each Department, the 12 months are each assigned a percentage – again adding to 100%. The system will compute the Sales Projection Dollars from your percentage inputs. If using History, you will enter the most recent 12 months of sales in each Department. The entries are quite easy, one figure, Tab, the next figure, Tab, and so on. NOTE: Clicking on the green code or description in the Department list (on the left side of each screen) will change the information box (on the right) to that Department’s data.
Enter Beginning Inventory
Next, enter your inventory from the 1st of the month. If unavailable, enter your current inventory and you will be able to update the inventory at the beginning of the coming month. The system needs an inventory to calculate your Current Turn Rate and to use as a basis for the initial OTB Calculations.
Set up Annual Turn Rates
The system is driven by Sales and Turnover, so choose one of the three measurements for each of Delivery Time (time from order to delivery), Shelf Life (how long you want the merchandise sitting there), and Item Quantity (when you buy an ITEM, do you buy small, medium, or large quantities). Your measurement choices lead to an Ideal Turn between 2.0 and 7.0. Since your Projected Sales and Current Inventory have been entered, the program has calculated Your Current Turn. Now compare the Ideal Turn to Your Current Turn and decide what Turn to be Used you want the program to use for calculating your buying plan. If the Ideal Turn is greater, we suggest using the Ideal unless it’s too much higher. In that case, you should choose a turn between the two. If your turn is greater, use your turn, but raise it a little to insure you are moving forward.
View Inventory Comparison
This screen shows your current actual inventory vs. your Projected Inventory and how much you are under or over stocked. You can now clearly see where your dollars are not working and take action to turn the excess inventory (red numbers) into cash and put that money into your bank account rather than back into inventory where it is not needed. Remember, everything is based on YOUR projected sales and YOUR desired turn rates, so the figures you see are real.
We recommend you skip this screen (as you can clearly see). It is intended for retailers who MUST project markdowns, but doing so will reduce the amount of dollars available for sale and increase the open to buy accordingly. This creates more inventory and more markdowns. The goal of the program is to eliminate markdowns. Now, that may not happen totally, but if you follow the program, you will be amazed at how few markdowns you will have.
Running the OTB Calculations is the final step in the Setup and leaves you in the OTB Summary screen. The OTB Amount shows what the program has calculated you have to spend on merchandise for each of the next 12 months. As you enter your On Order (outstanding orders) they will be deducted from the OTB Amount to leave the OTB Balance – the amount available to be spent or the amount overbought. Ideally, the OTB Balance column will be zero indicating you have spent the correct amount and not overbought. The Edit On Order button will only appear for retailers entering their On Order in Totals from outside the program.
On Order Record
For retailers entering their orders into the program By Order, they will have a Daily option on the black menu bar. This screen captures their individual orders that have been input and distributed to the various Departments by delivery month. All orders are listed on the right for the indicated Department and delivery month and are subtracted from the OTB Balance in the middle box. Each time an order is entered, a similar Receiving entry is created on the Receiving Record.
When merchandise is received, the amounts can be entered on the Receiving Record by clicking on the “Edit Pencil” on the right of the line item. The Total Received heading will change to Amount Received and the pencil changes to OK. Enter the amount of the receipt and click on OK and the Total Received and Order Balance are updated. The amount of the receipts are also entered into inventory as the program will maintain a perpetual retail dollar inventory in each department if desired.
Sales are deducted and receipts are added to the beginning inventory to create the Current Calculated Inventory (coming up).
The additional information needed to keep the perpetual inventory correct includes Transfers In, Transfers Out, Markdowns, Returns to Vendor, and Unsold. These can be entered on this screen and each entry is added or subtracted from the Current Calculated Inventory (Monthly/Inventory Update).
Move Orders Forward
For those entering their On Order By Order, the first step in the Monthly closeout process will be to decide on moving orders with open balances into the coming month or allowing them to be dropped from the system (cancellations should be sent to vendors in this case).
By checking the Move box, the individual order will be moved into the next month and deducted from the OTB Amount like the rest of the On Order. An “M” will be added to the end of the Order Number to signify that the order was moved from the previous month. Seeing this information is a good opportunity to clean up outstanding orders. Our suggestion is that orders be marked “Ship Complete” when they are written as vendors will ship what they have and leave your inventory unbalanced.
Retailers entering their On Order By Totals will not see this screen.
For everyone, the Monthly closeout begins with entering Sales (one figure per department) for the month just ended.
Analysis & Revision
Next up is the all important Analysis & Revision screen which shows how you did during the month just completed in terms of Sales, Beginning Inventory and Turnover – actual vs. projected. This screen will show you, in each department, whether you are moving ahead or slipping backwards. You will need to ask yourself WHY this is happening. What’s going on inside your store and outside your store that is affecting your sales. If you feel you are seeing on-going trends (up or down), you can make revisions right on this screen that will alter your sales projections for the next 12 months. If things change during the upcoming month, you will have an opportunity at the end of each month to re-evaluate your revisions. Making these revisions will keep your projections in sync with what’s actually happening in your store and consequently your buying plan right on target.
NOTE: The Analysis portion of this screen is retained in the History option on the black menu bar for every month that the subscriber uses the program and is added to History each time the OTB Calculations are run.
The next step is to enter a new beginning inventory. For those entering On Order By Totals, the first column will always read “Last Outside Inventory” and will not change until a new inventory is entered by overwriting the previous one. For those entering On Order By Order, the column heading will be “Current Calculated Inventory” and if not overwritten by an outside inventory will be used to begin the next OTB Calculation. The Current Calculated Inventory is a product of the previous month’s Beginning Inventory minus Sales, plus Receipts, plus or minus the Inventory Changes.
The new inventory is compared with the Projected Inventory for the new month and again you will be able to clearly see where your inventory is out of balance and take corrective action.
The Beginning Inventory Review and M/D Projections screens under Monthly are the same as the ones under Setup. It was just easier to have the Beginning Inventory Review under both menu options when helping subscribers with their questions. The M/D Projection screen needs to be dealt with Monthly as well if the subscriber is using that option (still not recommended).
When the OTB Calculations are run, the user is once again landed on the OTB Summary screen to review their OTB information for the next 12 months.