Product Development/Merchandising Definition and Stages (VICS EDI)
Product Development/Merchandising is the process of planning and promoting sales. This includes the development of new product specifications, projecting production requirements and establishing in-store display product presentations. Let’s take a look at the Merchandising Business Processes in the cycle.
Marketing. Generating product sales through advertising and promotional programs/incentives. Marketing also includes collecting consumer data relative to a product category, without regard to the manufacturer, in an effort to analyze consumer attitudes and purchasing trends.
Capacity Planning. Establishing manufacturing requirements (equipment, production run times, machinery/processes) for future production periods.
Product Development. Establishment of specifications for new products as well as product changes.
Sales Forecasting. Evaluation of product flow for projecting production requirements and anticipated sales revenues.
Sales History. Collecting and storing of sales information to be used in projection of future sales.
Demand Forecast. Projecting actual manufacturing capacity over a given time period.
Production Planning. Evaluating real and forecasted demand and establishing a viable manufacturing and assembly schedule.
Request for Quote. A process initiated by a buyer that formally asks a supplier to price a product.
Response to Quote. A response from the supplier to a buyer that provides a price for a product.
Packaging Specifications. Establishing how products should be packaged and their specifications.
Trade Item Identification. Defining each trade item (e.g., style, color, size) and assigning a Global Trade Item Number (GTIN) to each product.
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