Zonal Warehousing Optimisation: How Brands Can Reduce Stockouts?

Stockouts not only result in lost sales but also undermine customer trust in the reliability of your brand. In the context of Q-Com platforms, where rapid delivery times of 10 minutes have become the standard, zonal warehousing can serve as a critical strategy for optimisation. The following outlines effective methods for enhancing this approach.

1. Mapping Demand Clusters Beyond Urban Centres: The demand within Mumbai exhibits significant variation between regions, such as Bandra, which prefers late-night snacks, and Andheri, which focuses on office supplies. 

Solution: Utilise platform sales data to identify hyper-local demand hotspots and strategically stock the city’s central warehouse. This stock can then be efficiently redistributed by Q-Com partners to the respective dark store locations. 

2. Dynamic Inventory Allocation Versus Static Stocking: Demand can fluctuate unpredictably due to factors such as festivals, weather conditions, and traffic disruptions (e.g., increased demand for umbrellas during monsoon season). 

Solution: Engage with Q-Com platforms to access real-time trend alerts, allowing for daily adjustments to zonal inventory. This practice is particularly crucial during festival periods, necessitating proactive inventory discussions with your Q-Com point of contact and the preparation of contingency plans (Plans A, B, & C) for various scenarios. 

3. Pareto Principle for SKU Prioritisation: It is observed that 20% of SKUs contribute to 80% of sales revenue. Overloading warehouses with slow-moving items increases the risk of stockouts for high-demand products. 

Solution: Tier 1 Zones (High Demand): Ensure 100% availability of the top 20 SKUs plus an additional 50% backup stock. Tier 2 Zones: Maintain 70% of top SKUs in stock, supplemented by 30% of experimental products.

4. Buffer Stock Strategy for Rapid Replenishment: Inadequate stock management has resulted in lost sales opportunities for brands thriving in Q-Com. 

Solution: Sustain a buffer stock of 5-10% at the nearest fulfilment centres, synchronised with restocking schedules from Blinkit and Zepto. 

5. Utilising Dark Store Analytics: Many brands lack the capability to track which SKUs sell rapidly within specific areas of a city in the Q-Com sector. Partnering with analytics firms can provide insights into stock movement across localities. 

Solution: Collaborate with your Q-Com point of contact to address stock movement discrepancies within their network through joint data analysis and strategic planning.

In Q-Com, the location of the warehouse is directly correlated with delivery speed. The optimisation of zonal stocking significantly reduces stockouts and enhances the likelihood of repeat purchases.

Need help predicting demand and placing inventory smarter? We optimise zonal warehousing for Q-Com platforms. Connect with us!