Your business is what your inventory is, the growth, profitability, your personal income, your worker’s salary everything depends on how well you sell your inventory. There are lots of aspects of your inventory, how much you have in your warehouse, how much is on the way and who is willing to buy and who is buying your goods or services, and most importantly how much you think they will pay.
How are you going to manage all this information? Every aspect has its own software available in the market. But is it worth buying different software for everything? It is recommended and advised to switch to Point-of-sale (POS) system for your business, with inventory management as the primary need.
To know the importance of POS you’ll have to understand what POS actually is.
What is POS System?
A system where your customer is going to make payment for goods and services which you are providing them.
POS Software for Retail is the system that lets the business have transactions between the client and the customer for the goods and services the company has provided. POS system is a digitalized network that has many outputs linked with the main computer hardware with much other hardware integrated into it, from bar code scanners to card payment.
How Does The Point-Of-Sale System Work?
The system POS allows you to keep a record and track of all the payments you receive from the customer and even helps you to get a payment gateway for a better mode of payment, as simple as this sounds, the system can work in many different ways depending upon your mode of business it can be online, storefront, or even both. Initially, the POS system was used as a cash register in the storefront but with everything being digitalized, POS lets you monitor your customers from anywhere. All you’ll need is an Integrated POS app and an internet-connected device.
What does POS do?
- When a customer decides to buy a product from you, and if you have a store it may ask the salesperson to scan the barcode and let them know the price, some POS even lets the customer scan the code from their camera and know the price by themselves. Many online stores let the customer know everything on the cart page and then they can checkout by paying.
- The system POS will calculate the price of inventory with tax and even let you know which stock is sold.
- In the end, your customer has to move to the payment page, and they can choose the payment mode they prefer from a credit card, debit card, gift points, wallets, or even cash on delivery. Depending on what they choose the payment authorized party will initiate the transaction.
- When the point-of-sale transaction is done, this moment will be officially a point you had a sale. The payment will go through a digital or printed receipt form later you can ship or hand it over to your customer.
Pos for Retail Management
Everything related to your business directly or indirectly impact your revenue. The vision of the POS system is to know the reality of the business and integrate the business with every other aspect in a single software.
A POS system with inventory management as its core software makes it easier for you to keep every minute detail of your inventory, what you have in your warehouse, what is on your way to the warehouse, and what is moving out of your warehouse. It even helps you calculate the cost of each item sold in terms of staff salary, premises cost, and marketing costs moreover every other variable.
This system lies in the middle of your physical world and digital world. This system is a one-stop software for all accounting and sales information of your business. You can review any digital information from any internet-connected device with the POS app. You can let your team have the access to the information to a limit too.
Advantages Of Using The Pos System For Retail Management
The most common and basic advantages of the POS system are
- Track inventory
This system helps the business keep a record of their inventory irrespective of the number of stores they have. The POS is integrated with every branch at one point about inventory and accounting system. This makes you save a hundred trips to each store.
- Automate purchase orders
The modern POS system has in-built inventory management which can automatically purchase and place orders of clearing stock or can even alert you about the stock which is decreasing in numbers.
- Identify trends
The best part of the POS system is the tools it offers which helps us see what goods are moving out and which are coming in. you can even filter the data by preferred time period. Which will help you know the trends, by this information you can adjust your order history and purchase what items are hot selling in your inventory.
- Expand your inventory
If you’ll keep your inventory optimized it will make it easier for you to know everything about your inventory. With this information, you can grow the number of SKUs you have in your inventory. This way you’ll have more items to increase your sales.
- Improve cash flow
Every business nightmare is unsold inventory in the warehouse. A POS system will help you decrease the inventory by helping you know what sells and what does not. Keeping the stock of the right goods in the right amount is what every business wishes for, this will reduce your cost and help you boost your cash flow.