For greater efficiency on different levels, it is impossible for a retail store not to utilize Inventory Management Software. Because retail store have numerous fast moving products, a more efficient method of processing products is utilizing a barcode scanner. All the relevant product information is added to the running transaction total by simply scanning the barcode thereby eliminating the need for manual data input as the primary method.

Due to the many functions and capabilities of a point of sale systems they are also referred to as points of service. A point of sale (POS) system refers to a variety of hardware components and their supporting software. This system is strategically placed in a location where retail transactions are completed in a retail enterprise like supermarkets, convenient store and departmental stores.

Cash register VS Point of sale system

A cash register or till will tell you how much has been sold and how much you have taken at end of the day. Its main purpose is to process sales. The data is then transferred manually to accounts or stock lists.

A point of sale system (POS) is much more advanced. This system can be linked to other networks because it contains software. And as such it can instantly, electronically store endless amounts of data about stock and clients.

A pivotal advantage that a POS has over a cash register is that it has a provision for attaching a scanner. The scanner is the kind that is typically used at self service check outs or at retail stores like supermarkets. This advantage is vital as it plays a key role in stock control and market trends analysis.

Reasons why a retail business using POS (point of sale) will have a competitive edge at the market-place

1. Improved efficiency

  • Helps cashiers offer better customer service and errors can be rectified with a few quick clicks.
  • Cashier machine errors are drastically diminished
  • Speeds up the transaction process which is great for the customer but also translates to higher turnover of goods because more customers per hour are being served and this helps boost company revenue in the long term.

2. Inventory Management  

  • POS enables all stock to be scanned upon delivery and entered into a database.
  • Current levels of stock can be reviewed in real time at a glance and accurate purchasing decisions about re-stocking made.

3. Accurate reports

  • Customizable reports that include vital information such as daily takings and outgoings, giving the owner an understanding of the overall success of his enterprise.
  • Advanced reporting capabilities reveal sales trends and seasonal variations in product demand enabling the enterprise to organize stock levels accordingly and to take advantage of the market resulting in more profits.

Conclusion

With today’s cut throat competition, it is clear that Point of sale systems have become invaluable to the efficient running of retail stores and a crucial tool in gaining a much needed competitive advantage and customer loyalty in the market-place.

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