The Benefits a Business Gets by Using POS Software and Inventory ManagementMay 5, 2020
The core of hospitality or retail business, for that matter any trade, is the cash register. To make an enterprise run smoothly, it is vital to process every transaction and tender cash as efficiently as possible. A POS system is an application that allows a business to track sales as they happen. The system includes a range of hardware and software. E.g., an advanced Point of Sale software can come with inventory management.
By installing a POS software and removing the old manual cash register a shop can save a lot of money and resolve common issues like shrinkage. For a store that generates annual sales, the savings can be significant by utilising a POS system. When seen from an ROI point of view, the software pays for itself within two years, at the maximum.
In the case of small businesses, the expense makes sense because it automates labour intensive processes. This translates to fewer working hours and better productivity. For big conglomerates, the system is beneficial because it offers a finger on the pulse of business performance.
6 Merits of Point of Sale Software to a Retail Shop
- Managing Promotions
Coupons, promotions, and discounts are crucial to a retail store. They attract paying customers. A POS system can not only track discounts and markdowns automatically, but it can also manage and reconcile them for a short period. By managing special features, the software helps retain business.
- Better Control
It is common for a business to slack when the manager is not on the floor or premise. The customer service goes for a toss and efficiency is reduced. A retail management software offers managers to keep track of performance, sale volume and more even when they are not on the floor. This is made possible through the remote access feature. The feature can be used to login from any location and keep an eye on the store and, if needed, take action.
Whether travelling or taking an off, ensuring productivity is simpler with management solutions.
- Greater Efficiency
Instead of an employee double-checking inventory or reconciling the cash register with the sales, the software performs the action. It signifies that more workers are free to focus on tasks that generate revenue for the business. Furthermore, there are no human-errors in inventory or paperwork which intensifies efficiency.
- Precise Reports
Through a point of sale system one can compile and analyse sales data and conclude the following:
- How useful was an advertising or pricing policy?
- Which goods need to be ordered and in what amount?
- Which items are selling faster or offering a higher margin?
- What was the gross revenue and profit of a day, week, month or quarter?
All of the information can help predict future needs.
- Amplify Satisfaction
The number one reason customers get unhappy with a retail store is a long queue at the check-out. A point of sale software speeds up the process which heightens customer satisfaction. Moreover, the system can identify loyal customers and offer rewards using the data collected through credit or debit cards. The same information can also be appropriated for targeted incentives or adverts.
- Highly Scalable
Change is part of a business. It expands with time which makes its core processes more complex. A good management software comes with the ability to add more registers and computers when the need arises. An added advantage is that all the POS can be connected via the web and managed from one location.
3 Paybacks of Inventory Management Software
Managing inventory in a retail business is very challenging because the stock is always in flux and the demand of items keeps shifting. With inventory retail chain management software, the chore of tracking, handling and managing goods because simpler and easier. In the long run, the automated process helps save on time, money and a lot of headaches.
- More Profits
When an inventory system does the core business processes, the accuracy is improved. For example, with a single sale, the stock level is changed not just at the back end but on any other selling channel of the shop. Therefore, there is never a customer who leaves unsatisfied which reduces cost and increases profits.
- Lesser Shrinkage
The software tracks every SKU real-time using the receiving and selling feature. Thus, any pilfering or theft is easy to catch on. Also, ‘out of stock’ incidences are reduced. There is never too much stock lying on shelves and resulting in losses or vice versa there is never too little stock that leads to patrons returning empty handed.
- Automated Reordering
The system can be programmed to send a re-order request when an item falls to a pre-set stock level. The feature helps bypass stock-out cases. The same tool can be utilised to forecast demand and stop a reorder if there is already too much stock at the shop.