Kirana stores in India have grown as much as any other business model in the past few years. Rising time restrictions in today’s frenetic life and the Covid-19 pandemic have given birth to the improved version of the Kirana store that people witness today.
Gone are the times when the customers had to tour several stores to purchase their preferred essential items.
Nowadays, everything is readily available under one roof. While it became convenient for the customers, Kirana business owners encountered countless challenges, especially during hard pandemic times.
Managing assorted inventory stocks, equaling the business trends, dealing with a Kirana store loan, and satisfying the customer needs were the significant challenges that made Kirana business owners rethink how they should operate and manage inventory post covid.
Tips for maintaining stocks after Covid-19
Most of the country’s grocery and food consumption runs through Kirana (i.e., small retail ) stores across India. While the Kirana system is pretty old, it still catered to consumer requirements splendidly, especially during the Covid-19 phase.
However, during this quest of meeting customer demands accurately, Kirana business owners face many hurdles like stock-outs, trading with various distributors, visiting the physical market to procure goods, and running from lender to lender to acquire a retail loan for business diversification.
If you are also a Kirana business owner looking to revamp your stock management post this pandemic era, we have listed below some ways to help you effectively maintain inventory in your store.
Keep your stocks at par levels
The initial thing you should do to maintain your Kirana store stocks is setting par levels of your products, which are the minimum quantity of goods that should be in the store at all times.
By maintaining stocks at par level, you can better understand when to order more inventory when your stock drops below that predetermined level, which will differ from product to product.
This way, you can always remain efficient with your stock ordering. Also, by keeping inventory at par levels, Kirana business owners can eliminate excess stock problems and prevent a lack of in-demand products.
However, setting par levels of stocks can require some research and up-front work to systemize the ordering process and become quick with your decisions.
Group products meticulously
Grouping your Kirana store products is pretty crucial as it is a psychology that promotes impulsive shopping. To execute this product grouping accurately, try to place together goods related to each other or complement each other.
For instance, you should place cookies near the coffee or tea section or keep the sauce, cheese, and butter near the pasta or bread section. This will not only assist customers in grabbing items instantly but also help them remember if they skip.
Also, by grouping the products correctly, you can make your Kirana store look more organised and ensure that you always remain prompt with your assistance.
Go for the First-In, First Out (FIFO) approach
FIFO (First-in, first-out) is one of the most simplistic approaches to manage stock in your Kirana store post covid. Under this approach, the retail store owner fulfils an order with the item that has remained lying on the shelf for the longest time. Hence, this FIFO approach means getting your oldest stock out first and not the new one.
While using a FIFO method is crucial for perishable goods, it is also a transcendent practice for non-perishable items.
This is because packaging layout and hallmarks often vary over time, and the ultimate thing you desire is to end up with something old that you cannot sell.
In addition to this, FIFO usually results in a more economical cost of goods sold quantity as older items generally bear a lower cost than items acquired recently due to latent price hikes. With a more moderate cost of good sold quantity, you can earn higher profits.
Invest in an inventory management system
With the advent of technology, every business is going digital, and it is no different when it comes to a Kirana store. As you know that Kirana businesses are getting tremendous booms since the pandemic kicked in, it has become more than ever essential to have a proper inventory management system in place.
By investing in an automated inventory management system, you can efficiently track your stocks and simplify your entire stock management process to earn higher revenues.
However, if you do not possess enough funds to get an inventory management system or diversify your stock handling process, you can still achieve this by receiving a shop loan.
Also, since Kirana stores fall under the small business sector, business owners can obtain a loan for MSME for their business expansion.
Maintain healthy supplier relations
There is more to possessing a healthy relation with your suppliers than just having friendly communication. It demands transparent, proactive conversation because remaining flexible is part of thriving stock management, especially after the Covid.
This is because, during these challenging times, things in every business can change swiftly, and it is essential to maintain strong relations with suppliers to expand your operations.
Also, keeping open communication and healthy relations with your suppliers can help you restock your store faster, troubleshoot manufacturing issues, and quickly return slow-selling items to streamline your stock management and boost revenues.
The Bottom Line
Stock management is one of the most significant things you can do as a Kirana business owner. Effective stock management warrants that you hold sufficient stock on hand to meet customer requirements.
By maintaining your goods accurately and having the right inventory management system in place, you can do everything from decreasing your overall expenses and forecasting future transactions to preparing your business for unforeseen events and keeping your retail business profitable.
Also, if you are planning to get a Kirana store loan to streamline your stock management after Covid, look no further than Ziploan.
At Ziploan we can provide you with an instant retail loan at the most competitive interest rate to help you take your business to the next level. To know more about our loan facility, feel free to call us at 011 – 4310 – 9577.