Merchandise Financial Planning (MFP) for Grocery
Grocery
4-6 months
5 phases
Step-by-step transformation guide for implementing Merchandise Financial Planning (MFP) in Grocery organizations.
Why This Matters
What It Is
Step-by-step transformation guide for implementing Merchandise Financial Planning (MFP) in Grocery organizations.
Is This Right for You?
45% match
This score is based on general applicability (industry fit, implementation complexity, and ROI potential). Use the Preferences button above to set your industry, role, and company profile for personalized matching.
Why this score:
- • Applicable across related industries
- • 4-6 months structured implementation timeline
- • Requires significant organizational readiness and preparation
- • High expected business impact with clear success metrics
- • 5-phase structured approach with clear milestones
You might benefit from Merchandise Financial Planning (MFP) for Grocery if:
- You need: Merchandise planning platform or advanced EPM system
- You need: Integration with sales, inventory, and forecasting systems
- You need: Historical sales and margin data (2-3 years)
- You want to achieve: Achieve 20-35% improvement in margin realization
- You want to achieve: Achieve 15-25% improvement in forecast accuracy
This may not be right for you if:
- Watch out for: Organizational resistance to change
- Watch out for: Data quality and integration issues with legacy systems
- Watch out for: Over-reliance on historical data without real-time signals
What to Do Next
Start Implementation
Add this playbook to your workspace
Implementation Phases
1
Discovery & Readiness
4-6 weeks
Activities
- Assess current MFP processes and pain points
- Map planning hierarchies, calendars, and stakeholder roles
- Identify data sources (sales, inventory, margin, promotions)
- Secure executive sponsorship and merchandising buy-in
- Define success metrics and KPIs
Deliverables
- Current state assessment report
- Stakeholder mapping document
- Data source inventory
Success Criteria
- Executive sponsorship secured
- Stakeholder roles clearly defined
2
Platform Selection & Integration
6-8 weeks
Activities
- Evaluate and select an AI-native MFP platform
- Integrate with existing EPM, ERP, POS, and forecasting systems
- Establish data pipelines for real-time data ingestion
- Configure planning hierarchies and user roles
Deliverables
- Platform selection report
- Integration plan
- Configured planning hierarchies
Success Criteria
- Platform selected and approved
- Integration completed with minimal disruptions
3
Process Redesign & Agent Workflow Setup
8-10 weeks
Activities
- Redesign MFP workflow to support agentic orchestration
- Automate OTB calculation
- Implement AI scenario modeling for seasonal and promotional planning
- Develop real-time plan vs. actual dashboards
Deliverables
- Redesigned MFP workflow document
- Automated OTB calculation tool
- Real-time dashboard prototypes
Success Criteria
- Workflow redesign approved by stakeholders
- OTB calculation automated successfully
4
Pilot & Validation
6-8 weeks
Activities
- Run a pilot in 1-2 banners or regions
- Validate forecast accuracy, margin improvement, and process efficiency
- Gather feedback from finance, merchandising, and supply chain teams
- Refine workflows and agent logic
Deliverables
- Pilot results report
- Feedback summary from stakeholders
- Refined workflows
Success Criteria
- Pilot shows measurable improvement in forecast accuracy
- Stakeholder feedback indicates satisfaction with new processes
5
Enterprise Rollout & Change Management
8-12 weeks
Activities
- Scale the solution across all banners, regions, and channels
- Train users on new workflows and dashboards
- Establish ongoing governance and continuous improvement processes
- Monitor KPIs and adjust as needed
Deliverables
- Training materials and sessions completed
- Governance framework established
- KPI monitoring reports
Success Criteria
- All banners successfully using the new system
- KPIs show improvement post-rollout
Prerequisites
- • Merchandise planning platform or advanced EPM system
- • Integration with sales, inventory, and forecasting systems
- • Historical sales and margin data (2-3 years)
- • Defined planning hierarchies and calendars
- • Merchandising organization buy-in
- • Perishable inventory tracking integrated into the planning system
- • Promotion and markdown history for scenario modeling
Key Metrics
- • Margin Realization improvement
- • Forecast Accuracy improvement
- • Inventory Days reduction
- • Stockout Rate reduction
Success Criteria
- Achieve 20-35% improvement in margin realization
- Achieve 15-25% improvement in forecast accuracy
Common Pitfalls
- • Organizational resistance to change
- • Data quality and integration issues with legacy systems
- • Over-reliance on historical data without real-time signals
- • Lack of cross-functional alignment between finance, merchandising, and supply chain
ROI Benchmarks
Roi Percentage
25th percentile: 15
%
50th percentile (median): 20
%
75th percentile: 30
%
Sample size: 75