How Do You Manage Cash and Stock Shortages in Multiple Outlets? Seeking Advice!

We are a well-reputed company and operate 60+ outlets in India for our FMCG products. The regular sales are carried out by the Branch Managers for cash payments. However, we often experience shortages in cash or stock. If anyone could provide us with proper ideas or guidelines, we would be very thankful to you. All the best!

I recommend that you consider purchasing ERP software specifically designed for retail stores. It is essential to have a central server with each branch connected to ensure seamless operations. The software should facilitate automatic deduction of goods sold quantities as sales occur. There are comprehensive software solutions available that can manage the entire process from purchasing raw materials, processing them into finished products, storing in warehouses, transporting to mini warehouses, transferring goods to branches, managing branch inventory, sales at the point of sale, and generating reports at various stages.

At the close of each day, you can request a stock reconciliation report from the branch manager. They should provide explanations for any variances observed.

Another crucial aspect is to implement barcode scanning at the branches for inventory management of retail goods. Using barcodes during sales transactions can help reduce discrepancies significantly.

Best wishes,

Dinesh V Divekar

We are a reputable company operating over 60 outlets in India for our FMCG products. Sales transactions are predominantly cash-based and handled by Branch Managers. However, we often encounter cash or stock shortages. Any suggestions or guidelines to address this issue would be greatly appreciated.

Best regards,

Devdutt Patnaik conducted a session on managing outages in the retail sector. I suggest either hiring someone with experience in managing it for other chains or training your employees.

Insights from Devdutt Patnaik's Session

What I understood from Mr. Patnaik's session was that no matter how strong a system you may build or what software you may buy, it is the human values at ground zero that make a difference. He shared how these issues led Fortune Groups to major losses. However, with him joining as the Chief Belief Officer, systems were aligned with cultural and moral values.