Working Capital Management in Choppies Supermarkets Botswana

Abstract The aim of the research is to study the working capital management process implemented in Choppies and present an improvement strategy. This research is conducted in Choppies which is the largest supermarket chain and also the fastest growing chain in Botswana. It is also entrenching to South African retail market with three new supermarkets and more in the process of negotiation. It was established 18 years ago by Mr Ramachandran the present chairman. This has made miraculous change in retail sector in the country. It has shops all over the country and extends to remote towns. Thus it facilitated many remote villagers to get access to essential products. The research analyses the working capital management process and the main problems faced by the firm in maintaining optimum working capital. The methodology adopted is through questionnaire. The questionnaire is developed after thorough review of past and present literatures. The questions are prepared based on the important working capital drivers financial as well as marketing such Creditors, debtors, inventory control, cash flow, relationship management and store layouts. All the main issues are considered while preparing the questionnaire. The Pilot worked questionnaire is then distributed through e-mail, post and face to face interviews were conducted. The best mode of distribution was through e-mail and the best way for information collection is through personal interviews. The results indicated the way their system operated and they are presently happy with its efficiency. They are also looking forward for some of the issues faced e.g. debtors management, human errors in entries, theft and managing uncertainties. They would like improve the reliability of their forecast and increase the efficiency and visibility of the system. Problems are highlighted and solutions discussed. An integrated system connecting all the functions could improve the visibility and by ensuring standardised reporting would improve resolve many errors in the system. Root-cause analysis on the problems related to theft by staffs would help in identifying, training, controlling and monitoring the process and thus reduce theft related issues. This is followed by recommendations for future research