For decades, retailers relied on instinct while sourcing designs. Raghvendu Agarwal, Head of Operations at Sona Chandis, Kanpur, decided to change that. A third-generation jeweller, he explains how systematic supplier tagging helped cut inventory deadlocks and enabled smarter sourcing—aligning supplier patterns with customer demand, an uncommon approach in traditional jewellery retail.
Trigger
Attending jewellery exhibitions has always helped us stock new inventory and stay updated with emerging design trends. However, over time, this approach led to two major complexities—overstocking designs from the same suppliers whose pieces were not moving as expected and facing difficulty in quickly tracking suppliers whose products were performing well due to our traditional record-keeping methods. As a result, while we had a wide range of designs, we lacked visibility in supplier-wise performance and demand patterns. These practices gradually led to excess stock accumulation and inventory deadlock, impacting both cash flow and operational efficiency. This bottleneck led me to introduce supplier tagging, a practice aimed at bringing structure and visibility into supplier management. It allowed us to quickly replenish in-demand pieces, make faster purchasing decisions, and simultaneously experiment with new suppliers, ensuring fresher inventory while creating a more balanced and sales-driven stock mix.
Execution
The process was executed after detailed internal discussions that identified operational loopholes in our inventory and supplier management system. Once the gaps were clearly mapped, our in-house tech team designed a customised database that allowed us to capture and organise all the required information in one place. We created a unique identification code for each supplier, which is printed on the barcode attached to every piece. Today, a simple scan of the tag gives us complete visibility into supplier details—including the exhibition from which the pieces were sourced, supplier name and contact information, pricing, and other key buying data. To ensure smooth implementation, employees were trained extensively in the process before it was rolled out into daily operations.
“We now have faster restocking cycles and an annual reduction in dead inventory by 18–20 per cent, due to Systematic tagging.” – Raghvendu Agarwal, Head of Operations at Sona Chandis, Kanpur
Result
We now have faster restocking cycles and an annual reduction in dead inventory by 18–20 per cent. Systematic tagging has not only helped us identify star suppliers who are driving sales but has also enabled us to retain them. We are also able to identify customer buying patterns and accordingly experiment with similar popular designs across other suppliers. This has helped us stock a wider yet more relevant range of varieties. We even gain benefits while visiting exhibitions. As these events have expanded in scale, retailers are influenced to purchase multiple designs. By attending with a structured database, the process is no longer chaotic for us. We approach suppliers with clear requirements, and overall, this organised system has contributed to a significant boost in sales.
As told to Suchita Sail
