2021 | March Newsletter

Mar 8, 2021 | Newsletter

Using Closeout in HIMPACT

Have you ever wanted to hide an entire customer order from HIMPACT? Luckily, there is a very simple way to do this. When you create an Event for the customer as a Booking, simply put the word “closeout” anywhere in the Event Name (called xfPlanName in the interface and excel spreadsheet). HIMPACT will then automatically Promo Filter off 100% of the demand. This feature also works for Plans, where you don’t only offer closeout pricing to one customer or chain.

Why This is Helpful

Closeout demand can skew replenishment, and we see this most often for super seasonal items or the items that you tend to only carry for a few months of the year. Some buyers place one order a year from a long lead time factory, for example, and you hope to carry just enough through the season. You may choose to carry excess inventory through the off-season. However, if you offer it at a discount to your regular customer base or to a hard discounter to get rid of that inventory, you should use the Closeout feature.

When this demand is recorded in HIMPACT, hopefully, you already put the item on Promotion to filter off the demand as promotional. In most cases, this is adequate. Although, when looking at how much to buy next year, you will have to remember to exclude sales that you had to markdown at the very end of the season, or else you may order the wrong quantities for the next season. Some of you may be manually adjusting down these markdown sales in HIMPACT. Using the “Closeout” feature eliminates the need for manual intervention.

In summary, there are a few benefits to excluding 100% of closeout demand.

  1. You eliminate the need for manual adjustments
  2. You don’t have to remember to exclude it from next year’s purchase
  3. The season profile for the item will reflect the seasonal demand curve you desire, rather than what actually happened.
  4. You are in control of when you run out of seasonal items instead of leaving it solely to consumer demand.

To request additional training please contact Bryan Cox, Manager of On Boarding & Buyer Support at bryan@Herlitzim.com.