Effective Inventory Management using the right POS software

The positive superiorities leveraged by a point of sale system onto a business is nothing not known about. Retail or manufacture - both industries are vastly influenced by the use of POS software, in myriad ways. And business owners in these two sectors are well aware with the bottom-line impact that effective inventory management practices leave behind. So, on the whole, a broader picture suggests a succinct collaboration of efficient inventory management and point of sale systems to keep discrepancies in businesses as much at bay.

Precise inventory management would imply keeping a track record of the inventory numbers, product orders, their sales and deliveries, etc. this sure would help the business owners in managing product overstocks and outages, at the same time. The bare minimum to tracking inventory levels would come down to either maintaining a hardcover book or a virtual spreadsheet. Both of which can be absolutely applied to the businesses free of any costs. But that would only become cumbersome and faulty. Of course, then there are those run-of-the-mill, specific inventory management software available in the market. But there’s a better option also available - effective inventory management integrated into POS systems.

Before proceeding any further into the union of point of sale systems and inventory management, let us skim through a little background on managing the inventory. An old theory, born in Japan, quite easily educes the basics of right inventory management, which is Just-in-Time: meaning you supply as per demand. There should be no scope for excess/ surplus inventory items to be stored in the backend. Well this certainly is an ideal situation, but in reality that is far from possibility. Simply because you can never predict the demand and variations in demand beforehand, in most cases. Too much of stocks in the backend would mean loss of liquid assets, while zero extra assets would mean a dry business!

Coming back to POS systems and software, the integration of inventory management with POS systems though has made effectual the application of Just-in-Time today. Simply because, POS systems are so multi-faceted that forecasting demand and supply statistics has become quite easy. The entire underlying fundamental concept of inventory management is to avoid having any tied-up capital at any point in a business.

Since, POS systems are a consolidated hub to gauge, check, expect and track sales and other sales-related information, they become one-stop destination to elicit any information regarding sales. For example, for obvious reasons of electronic (impeccable) tracking of sales, one can very easily judge

- The market and customer trends in buying,

- Which articles sell most in which season?

- Which items have a peak period of liking with the buyers?

- Unique customer behavior,

- Product feedback and “want” in the market,

- Overall sales history as well as pertinent to a specific product,

- Products that aren’t selling well in the market.

- Or choosing the choosing the clearance items.

These are just a few of the outcomes to name on the fingertips. There can be many more elicits and, likewise, elucidations to be worked out.

Secondly, POS software will help you give a deeper view into the success or failure of your discounts and promotions deployed. You could devise a new marketing approach in-sync with the results fetched from the research. At the least, from one spot you can very well handle the inventory levels of disparate stores under you.

All of this gives you an extended hindsight into aptly managing your inventory items. The key to effective inventory management is through the use of right POS systems.

Using a POS System for Cash Management

Retail business owners need some form of cash management system to carry out their daily cash or debit/credit transactions. The two most commonly used cash management systems are the electronic cash registers and the modern computerized point of sale system (POS). Both these systems have their own advantages, and many retail merchants have either of these two cash management systems in their retail stores.

Cash registers are suitable for small businesses where more advanced features are not required. Cash registers help in storing money in a safe and secure manner. One of the main reasons why many new retail owners go for an electronic cash register is because these are affordable. These usually come in the price range of $300 to $1000; therefore, many cash-strapped retailers find it easy to install an electronic cash register in their stores.

POS systems, on the other hand, are a relatively modern phenomenon in the retail cash management industry. Although it is more expensive than electronic cash registers, the advanced features that it provides makes up for the initial investment. In the recent past, POS systems were usually used in big retail stores; however, due to the stiff competition in the market, many affordable POS systems have arrived, making it possible for small and medium business owners to install it in their stores. There is a huge variation in the prices of POS systems as the price is determined by a lot of factors such as the type of software used, and the number of hardware devices connected to the POS system. As a result of this, a POS system can cost you as little as $1,500 and as high as $20,000. Choosing a POS system for your retail business should involve careful research and planning on your part about the needs of your business.

Benefits of Using a POS System

·        One of the biggest advantages of using a POS system is that it provides you detailed information about your business. You can get complete information about the daily, weekly, and monthly sales, including information on which products are selling off the shelves, and which are struggling to take off. This can help you in making informed purchasing decisions.

·        Business owners are spending more and more time on knowing the changing preferences of their customers. Today, the business is all about keeping your loyal customers and scouring for new ones. To do all this, you need a reservoir, or a database, through which you can get information on the buying patterns of your customers. This is where POS software can be really effective. As it stores all the information related to your sales, you can get crucial information on peak selling hours, or how discounts have worked for you in the past. In a nutshell, if you want your cash management system to do more for you than just secure money, you should definitely go for a POS system.

·        A modern POS system will help you in knowing exactly which inventories need restocking. As a business owner, you don’t want your customers to walk off from your store without making a purchase just because you couldn’t restock the items in time. POS system gives you a headstart on the various aspects of your business.

This was some information on a POS system and its associated benefits. As we mentioned in the beginning of the article, you should do ample research before buying a POS system. Analyzing your needs and comparing the POS systems available in the market should be done before you invest money in it.