Budget & Assortment

A3 supports the top-down setting of season budgets. In the philosophy of A3 the budget is set from 3 different points of view: Financial, Sales and Product Management. Each discipline sets the budget from its own point of view and budgets are communicated. In this way the budgets are set in a well founded way and when they are discussed, this can be done on the basis of facts.

• The Financial target is the overall budget of the board per Brand/Division and per Sales channel/Country.
• The Sales or Country targets per Brand/Division are set with their Financial target as a guideline.
• Product Management splits their Financial target over the different product groups taking into account the average sales in units per article, average sales price, target gross profit. The sum of Sales or Country targets and the Product management product group plans are synchronized.

Finally the product group budgets are split over different article groups for a budget in units. This budget can be used as a starting point in the module Blind disposition. The determined number of options with an average price can be used as a starting point for design.