Warung Pintar Boosts Grocery Store Turnover through Supply Chain

The Covid-19 pandemic is undeniably having a big impact on several entrepreneurs, especially micro, small and medium enterprises (MSMEs), including grocery store owners. In a survey conducted by Warung Pintar, the average decline in grocery store revenue is up to 28 percent.

Even in several locations, such as commercial locations, public services, and schools, experienced the most drastic decline of up to more than 80 percent due to the cessation of activities in these locations.

This limitation of activity has resulted in disruption in the supply chain which has caused uncertainty in the existence of goods as well as price hikes due to the scarcity of certain goods. This is also an impact of changes in people’s behavior towards purchasing and selecting consumer goods by making stalls and grocery stores the main options for meeting daily needs.

The unpreparedness of the supply chain for changes that occur suddenly leads to a butterfly effect on the decline in income (turnover) of the backbone of the economy. The CEO and Co-Founder of Warung Pintar, Agung Bezharie Hadinegoro, said that to stem supply chain uncertainty, the company prioritizes automation in operational systems and good relations with producers and distributors of consumer goods.

“We are trying to prioritize the best service in terms of cost, stock availability, as well as the accuracy and speed of delivery,” said Agung in his statement, Monday (25/1/2021). Answering the needs of grocery stores, the company launched the Smart Wholesale service, which currently has more than 200 wholesale partners.

The Efficiency with Smart Wholesaler

With Smart Wholesale, according to Agung, grocery stores can choose to buy goods from wholesale partners so that goods delivery can be done within 1 to 3 hours. “This service also helps meet sudden needs that often occur as well as facilitate the activities of stalls that have limited cash circulation,” he added.

Based on the results of internal research, supply chain innovation initiated by Warung Pintar has resulted in efficiency in terms of time, costs, and guarantees for the availability of goods. By shopping at Warung Pintar, shop owners only need a maximum of 43 minutes to order goods, in contrast to shopping at other suppliers which can take up to more than 1 hour.

Now, shop owners also only need around 14 hours to wait for the delivery of their ordered goods, even 2.5 hours with the same-day service for the Smart Wholesale. With this time efficiency, stall owners claim to have more time for family.

In Terms of Cost and Availability of Goods

In terms of costs, shop owners saved an average of IDR 62,000 because they did not need to travel to shop offline. The price of goods offered by Warung Pintar is also classified as competitive compared to other suppliers by up to 20 percent due to shorter and more transparent distribution chains.

As for the availability of goods, Warung Pintar is able to provide up to 95 percent fulfillment of shop stock due to the automation system that allows Warung Pintar to anticipate demand. This efficiency also encourages the improvement of the welfare of stall owners registered at Warung Pintar.

As many as 16% of Juragan recorded earning above the UMR and 34% of Juragan managed to rise above the poverty line. The shop owners also admit to experiencing an increase in daily turnover of 20 to 34% within 1 year.

In the Smart Wholesale service, Grosir Pintar members can reach up to 600 stalls as new customers. Where among them were recorded to have made a profit of up to 8 times from the previous one.

In 2020, the number of transactions and active users of Warung Pintar will increase more than 6 times. Seeing this trend, he believes that Warung Pintar can grow together with the warung industry players by continuing to encourage efficiency and productivity.