Are you a retailer struggling to manage your inventory? If so, you may want to consider implementing an Open To Buy (OTB) plan. OTB is a financial tool used to track inventory levels and make informed decisions on purchasing. In this post, we will answer the most popular questions about OTB and explain how it can benefit your retail business.
Open To Buy (OTB) is a financial plan that helps retailers manage their inventory. The plan allows retailers to track inventory levels, sales trends, and purchasing decisions. By using an OTB plan, retailers can avoid overstocking or understocking their stores.
OTB is essential for retailers because it helps them make informed decisions on purchasing. Without an OTB plan, retailers may overstock their stores with products that won't sell or understock with products they needed. By tracking inventory levels and sales trends, retailers can make informed decisions on what products to purchase.
To create an OTB plan, retailers must establish a budget for purchasing. This budget is based on sales projections and inventory levels. The retailer then tracks their actual sales against their projections and adjusts their purchasing accordingly.
The benefits of using OTB include better inventory management, increased sales, and improved profitability. By tracking sales trends and inventory levels, retailers can avoid overstocking or understocking their stores. This leads to increased sales and improved profitability.
Digital Marketing can help retailers implement an OTB plan by providing data analytics tools. These tools allow retailers to track sales trends and inventory levels in real-time. By having access to this data, retailers can make informed decisions on purchasing.
Ad Tech and Advertising play a significant role in OTB by providing retailers with data-driven insights into consumer behavior. By using targeted advertising and data analytics, retailers can determine which products are selling and adjust their purchasing accordingly.
