Coronavirus has created uncertainty, and the lockdown has resulted in customers’ panic buying. The publics are in illusion; there will be a shortage of essential goods due to closure of borders, limited international flights, and lockdown.
Across the world, the shops’ shelves emptied, e.g., in Britain 1 Billion Pound of food was bought in 3 weeks, though the manufacturing was increased by 50 %.
Coles chief operating officer Matt Swindells quoted, “It’s excessive demand way beyond normal demand, we have done three Christmases back to back in a space of three weeks, That is not sustainable.”
Generally, grocery stock is determined by weather and festive season. Panic buying increases pressure on the supply chain, supermarket staffing, and will contribute to price escalation.
Public psychologically influenced to buy more due to:
- Shops opened certain days and limited period
- Public allowed only on certain days to shop
- Limit in the number of items that can be purchased
- Influenced by minority shoppers buying large quantity
- Empty shelves in the shops
To be fair for all and to discourage panic, buying supermarkets limited the number of items that can be purchased by one customer. The public is overcoming the limitations by:
- Queueing up early
- Visiting multiple shops also multiple times
- All the eligible members of a family buying individually.
The above activities may result in high chances of getting infected.
Effects of hoarding.
- As stocks, depletes cost will go up
- The stock that requires lead time to procure or produce or manufacture will be out of stock
- Especially items with expiry date either will go waste or buyer will consume more than usual.
- Also, due to unnecessary items in the home and lockdown, the buyer will consume more that results in obesity.
- Piling of alcohol, complemented by the locked-up environment, will increase the consumption of alcohol resulting in domestic violence and health issues.
How to stop hoarding?
The current setup of the supermarket
- Similar to school catchments, introduce for shopping. Where residents can buy only in their designated shopping centers in their suburb.
- Allow users inside the store if they are from that catchment after checking their Identification
- Use the driving license as it will have the postal address
- If the shopper does not have an identity card, use the utility bill or any document.
How to stop hoarding using technology?
- Generally big stores as Costco, Woolworth have Member or Reward card.
- All members of a family linked to one Membership/ Reward card.
- Based on the average consumption for a family, restrict the number of products that can be purchased on weekly for perishable edibles items and monthly for nonperishable.
- Users purchase verified at each purchase in any store where their Membership/Reward card is valid.
Following the suggested model:
- Stops hoarding
- Reduces spread of the virus
- Pressure on the staff members
- Unnecessary crowding in grocery stores
- Wastage of perishable and nonperishable items.
- Control on the cost of grocery
Key takeaways
- Introduce catchment where residents are restricted to buy only in their locality
- Limit purchase based on Reward/Membership card for a family rather than per user
Digital Transformation is using the technology that is flexible, adaptable to address the business needs in a calamity. – Sunil Mysore Kempegowda