Picture this.
Scenario 1: A lady shopper walks into Supermarket A to buy groceries. The floor is spic and span, there are bright banners displaying the offers of the day, the shelves are fully stocked, and the staff have smiley faces.
She walks out a happy customer.
Scenario 2: A lady shopper walks into Supermarket B to buy groceries. The floor is spic and span and there are bright banners displaying the offers. But a few shelves are out of stock, though the staff have smiley faces.
She walks out an unhappy customer.
Did you note the factor that made all the difference to her experience? The product availability. In supermarket A, she found everything she had on her shopping list… because, the shelves were loaded.
While, in the second one, she would need to make one more visit to the same or a different supermarket to complete her shopping.
Today, as the retailing world gets more competitive, complex and ambiguous, a retailer cannot afford to lose even a single customer. Your front store may be pretty and decked up to lure the customers, but if your ‘behind the scenes’ activity is messy and unorganised, you have a weak link in your supply chain.
The last 50 yards or the distance between the back storeroom and the shelf is nothing short of a battleground for any retailer. The entire process of stocking shelves is time-consuming, labour-oriented, unsafe and unproductive.
Most retailers would agree that obtaining real-time visibility at this point of execution is a ‘black hole’ in their efficiency. Surprisingly, in spite of the last 50 yards in any retail’s supply chain being the most crucial, it is prone to mismanagement.
It results in huge costs in terms of piled up inventory, tied-up working capital and lost sales. Now, as a retailer, you don’t want that.
The true test of a supply chain’s efficiency and effectiveness lies in robust management and well-thought design of this last 50 yards. Let me tell you how.
Minimise the use of pallets, use roll cages
Most retailers use pallets to load and unload their merchandise. However, pallets are not customer-friendly. Their size and shape are difficult to handle for the workers.
A wrong pallet can disrupt the storehouse-shelve lifecycle of the product and slow down the delivery to customers. High quality pellets can be expensive, so instead opt for roll cages.
The latter are economical, sturdy, lightweight and low maintenance. They are also very employee-friendly — even a 58-year old worker can operate it with minimal physical effort.
Roll cages also allow you to replenish faster replenishment and avoid the ‘out-of-stock’ crisis.
Play safe with your workers’ health
The more merchandise you store in the backend, the more space congestion it creates. Your workers can trip, fall and get injured. Injuries lead to absenteeism and, hence, lower productivity.
End result? Slower stock loading process and higher customer inconvenience. Remember, your labour is the most expensive asset.
More you invest in their safety, better your processes will be.
Speed is the key to higher sales
Merchandise is for display and not for storage. It is for customers to touch and feel. The speed at which you replenish the empty shelves can determine your sales.
So, try to automate the operations in your last 50 yards for a hassle-free replenishment process, especially during the peak hours.
Save your merchandise
Overstocking of merchandise in the back room is not a good idea. There is a risk of pilferage, theft, damage or shrinkage. Even a 2-4 per cent of such risk can have a negative impact on the bottom-line. So, plan your sales estimates in advance and maintain inventory in the backyard accordingly.
Avoid bad costs related to handling
The number of times a product is handled can also affect the overall cost adversely. Avoid double or triple handling of merchandise by working out solutions that move it directly from delivery to display.
A true retailer can become an exceptional retailer only if he implements best practices in the last 50 yards of supply chain in his organisation.
