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Secrets of Optimal Inventory in Supermarkets

Fear of reducing inventory

What is the right amount of inventory investment is simple and yet challenging to answer. Generally, retailers fear reducing the inventory investment as this may result in out of stock situations. This fear pushes them to pile-up unnecessary stock which they may not sell.

The thumb rule in having the apt inventory levels is to “Stock only that  much as many you can sell.” Supermarket giants like Walmart maintain optimal stock which is around 10 days based on just-in-time(JIT) principle. But that is not the case in India. Retailers re-stock the  products by intuition or gut feeling. We could say this was the scene before technology stepped into every store and automated most of the manual work.

Overstocking leads to…Inventory in Supermarkets

Today, you will still come across retailers who even after automating the billing process still are unable to analyze the inventory and take random decisions while re-stocking. Conducting business in this way would gradually leave the retailer with more supplies, low profits, increase in real estate monthly rentals and debts. Who is at a loss?

Retailers do not realize that the fear of reducing inventory investments leads them into further losses. To pay the suppliers on time, they borrow credit from banks at high interest rates. What adds more to the retailers dilemma are the numerous enticing offers by different branded products. Even if the retailers are not going to sell that many numbers, still they fall prey to these offers and end up re-stocking items which do not sell or turn into dead/non-moving stock.

How to optimize inventory?

Inventory can definitely be managed with ease using a simple solution that analyzes and empowers the retailer to take a conscious decision on re-stocking of products wisely. GoFrugal has thoroughly analyzed the problem of overstocking and developed an easy to use affordable retail pos solution that will completely automate the re-ordering process for retailers. The grocery POS software helps you manage the following business processes:


This feature allows you to re-order stock based on sales for a selective period or previous year’s seasonal sales numbers. You can check for specific items in the inventory which are either out of stock or below the minimum stock levels. The items of particular companies can be categorized and clubbed together along with their multiple variations.

Business Intelligence

GoFrugal grocery pos software enable you to have diverse reports that helps in  analyzing and identifying dead, non-moving and short expiry stock. Retailers can always plan their returns of stocks to suppliers within the stipulated time and thereby save more money.

Physical stock-taking

This is a very cumbersome job for every retailer and usually done once a year due to various reasons. But with the supermarket solution in hand, retailers can conduct regular rack-wise and shelf-wise stock checks during lean hours of business.

Such solutions are a blessing in disguise for every retailer who aspires to have optimal inventory. You need to manage your inventory investment dynamically before it turns sour. Be active and sign-up, Download Free Supermarket software. Happy retailing 🙂