What is the first step in the OTB Plan Development cycle?

The first step in the Open-to-Buy (OTB) Plan Development cycle is forecasting sales. This step is crucial as it sets the foundation for the entire planning process. By accurately forecasting sales, a retailer can anticipate future demand for products, which directly informs how much inventory should be purchased.

Forecasting sales involves analyzing historical sales data, market trends, seasonality, and broader economic indicators to predict what items will be in demand. This initial assessment allows retailers to make informed decisions about inventory levels, ensuring they align with anticipated customer needs.

By starting with sales forecasts, retailers can then move on to other aspects of OTB planning, such as establishing BOMI levels, calculating OTB, and projecting turnover, all of which rely on this preliminary sales data to be effective and accurate.