Do you have multi-store business? - Clorida

A Multiple Store System is one in which a single business firm owns a number of branch shops or stores. Developed with the prime intention of avoiding middlemen and establishing a direct link with the consumers, this concept has been in vogue among manufacturers as well as wholesalers. The stores may be located in different parts of the same city or a country, each one dealing in the same products or services. This mode of operation is sometimes referred to as Chain Store system. Scattered Locations having Central Control and ownership mark the identification of such shops.

Features of Multiple Stores

▫   Specializing in just one or two articles, they charge uniform price over the network

▫   Most of the business is being carried under cash terms—credit is not entertained

▫   To do away with middlemen and thus come into direct contact with buyers is the intention

▫   The Centralized Head office controls all the outlets and takes care of general procurements as well

▫   Sticking to simple and similar design, branches are distributed over a city or provinces

Challenges in Managing Multi-Store Business

▫   Communication Hurdles: Little or unplanned communication takes place

▫   Time Jugglery: When primary location gets busy, resources at other locations may not be able to get their deserved time

▫   Weakening of Logistics: Time delays and excess efforts required may not be avoidable

▫   Complex Processes: At times, it becomes difficult to coordinate and collaborate on certain assignments as employees are remotely based

▫   Reduced Team Cohesiveness: Not being acquainted with one another, employees may develop aloof emotions

▫   General Supervision and Discipline: It is a different story altogether, to maintain a controlled structure of discipline, when it comes to multiple location outlets.

Steps to Achieve Smooth Running of a Multi-Store Business

▫   Standardizing: It would be a good idea to standardize all vital operations such as Money transactions, Layout and Storage, Customer Service, and Security aspects uniformly over the entire network

▫   Make use of Technology: Using Cloud-based Solutions renders accessing and entering information easier and convenient. As this enables distributed storage and retrieval, all tools and features can be used by users on different locations smoothly

▫   Inventory Optimization: Across the network, taking stock of things, transferring commodities to the needful places, and deciding which items require priority can be dealt with efficiently, by optimizing inventory across the chain

▫   Hire the best Talent and Keep a Regular Check on all outlets: 

    Even under the conditions when dearth of appropriate resources prevails, it is crucial to place the right kind of people at the right place. Multiple locations bring with them multiple responsibilities—raising the need for well-qualified, reliable employees. Management must make it a point to keep vigil and check all stores at regular intervals

It is not an easy piece of cake, but running a multi-store business can be managed with the right tools & technology, procedures and people in a successful manner to reap profits.