Significance of Stock Positioning in Grocery and Departmental Stores
An often undermined aspect in FMCG store management is planning for stock positioning.
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๐๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐๐ ๐ฝ๐ฒ๐ฟ๐ถ๐ฒ๐ป๐ฐ๐ฒ โ ๐ฅ๐ฎ๐ถ๐๐ผ๐ป ๐ฝ๐ฎ๐ฟ ๐ฑรฉ๐ณ๐ฎ๐๐
Organisation, consistency, logic, accessibility, and attraction are some aspects retailers should not be ignoring when it comes to stock positioning. When products are positioned adhering to certain principles or rules covering the aspects highlighted above, it makes it easier for customers to execute their shopping journeys. For example, placing all cereal products on one shelf makes it easier for customers to explore all the options available to them in one place.
๐ฆ๐๐ผ๐ฐ๐ธ ๐ฃ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ ๐๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป ๐ ๐ฎ๐ฑ๐ฒ ๐๐ฎ๐๐ถ๐ฒ๐ฟ
Small grocery and departmental stores that are not using advanced technologies have to manually evaluate the performance of stock by assessing every shelf. An empty shelf is a good sign โ everything put up got sold. However, it will not apparently show what product was there. This can deprive retailers of drawing performance insights easily. With a stock positioning plan in place, shelves are properly labelled reducing unnecessary efforts and facilitating easier performance evaluation of stocks.
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๐ค๐๐ถ๐ฐ๐ธ๐ฒ๐ฟ ๐ฆ๐ต๐ฒ๐น๐ณ ๐ฅ๐ฒ๐ฝ๐น๐ฒ๐ป๐ถ๐๐ต๐บ๐ฒ๐ป๐
After the end of the day, shelves have to be replenished by pulling new stock from storage. Again, despite being good news, empty shelves can be a little problematic. This re-emphasises the importance of shelf labelling. However, another problem surfaces when the focus shifts to the storage room. Veteran retail departmental store consulting professionals would agree that knowing the exact location of products/SKUs in storage rooms is extremely useful for operational efficiency. Without this knowledge or a planned framework for stock positioning, store owners or employees will have a hard time every single day trying to retrieve and replenish the shelves.
๐ฆ๐๐๐๐ฒ๐บ๐ฎ๐๐ถ๐ฐ ๐ฅ๐ฒ๐ผ๐ฟ๐ฑ๐ฒ๐ฟ๐ถ๐ป๐ด
In retail stores where the process of collecting data for reordering is manual, having a stock positioning plan proves to be of immense help. Placing stocks in locations defined by certain rules and order makes it easier to navigate within storage rooms in a planned and purposeful manner and take the readings of stock levels. This also helps make the stock measurement books more organised. Finally, when it comes to ordering, orders can be systematically placed following the same set of rules.
๐๐ฒ๐๐๐ฒ๐ฟ ๐ฆ๐๐ผ๐ฟ๐ถ๐ป๐ด ๐ณ๐ผ๐ฟ ๐๐ฎ๐๐ ๐ฅ๐ฒ๐๐ฟ๐ถ๐ฒ๐๐ฎ๐น
The first requirement of the storing process is having a proper landing or receiving area. After inspection, the goods have to be placed in their designated locations for easy access and retrieval for shelf replenishment. Without a stock positioning plan for the storage room, the above action is not possible and the desired objectives cannot be achieved. If goods are placed here and there, it will soon end up messing up the storage room making access to and retrieval of stock complex tasks.
The essence of stock positioning is having a defined order or set of rules or policies for the positioning of stocks in the display shelves as well as in the storage rooms โ maintains Nikhil Agarwal (Chief Operations Officer of YRC). In ๐ฟ๐ฒ๐๐ฎ๐ถ๐น ๐ด๐ฟ๐ผ๐ฐ๐ฒ๐ฟ๐ ๐๐๐ผ๐ฟ๐ฒ ๐ฐ๐ผ๐ป๐๐๐น๐๐ถ๐ป๐ด and retail supermarket consulting, YRC strongly recommends the use of ๐ฆ๐ข๐ฃ๐ for stock positioning. This holds for departmental stores as well.
Get advise for Retail Business Consulting : https://www.yourretailcoach.in/contact/
Rupal Nikhil Agarwal
YourRetailCoach
+91 98604 26700
consult@mindamend.net
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