A point of sale is the place where your customers finally make a payment for the goods and services offered to them. It is also a place where customers return products and services and get refunds. These transactions can be carried out at a brick-and-mortar store or online in a virtual sales point.
Depending on the size of your business your POS system might vary from a single computer to a state-of-the-art system of integrated computer network equipped with sophisticated point of sale software. You might have started with a cash register or a simple PC and a spreadsheet but as the business grows you will come to need a more advanced system for point of sale transactions.
POS systems are practically useful in retail stores and restaurants. With a good POS system, these businesses can keep track of inventory management, improve on time management and enhance the customer’s experience. The effect of this system on a business cannot be overlooked. Having a capable POS system will put you ahead of others in a very competitive market. This advantage is further enhanced when you integrate a system for managing your inventory.
POS For Inventory Management
Keeping track of inventory is probably one of the most important aspects of a business, especially one that deals in the sales of products. Inventory makes sure you have the right amount of stocks always and at the right time. You know exactly when to restock and what to restock.
Most small businesses make use of manual methods to keep inventory, using tools like google spreadsheet and Microsoft excel. But the process of keeping inventory can get complicated fast. This complication is made worse by business growth. This is one of the reasons why an inventory management system should be a necessity for your business.
When you have a POS that is integrated with an inventory management system, not only does it aid in processing orders more quickly but you also get detailed insights on the merchandise available and know exactly when to order and what to order.
We are going to list the uses of having a POS that is integrated with the right inventory management system so that you can see why getting one would, ultimately, be good for business.
EAdvantages of Using A POS System for Inventory Management
Automated and Accurate Inventory Management
Running out of stock or carrying too much stock at any given time can amount to huge consequences for any business, big or small. A POS system that is integrated with an inventory management system will automatically keep track of the inventory you have and would provide needed insight usually at the click of a button. A good POS inventory management system will warn you when a particular inventory is low and a highly efficient POS system can even complete your purchase order for you.
Every business comes with the capability to expand and with this expansion, there might be a need to locate other branches of the business in different parts. This will make keeping inventory a bit more complicated. You run the risk of losing inventory to theft and there is the risk of human error.
Inventory management systems reduce the risk of such occurrences. With this system, you can have multiple sales locations and still keep tabs on the inventory without being there. With this system, there can be no risk of employee theft and you ensure employee efficiency.
A Versatility of Options
Depending on the type of system you choose you are offered two types of inventory management options.
There is the perpetual inventory system that keeps continuous track of your inventory and records every adjustment to inventory balances due to transactions that are made at the POS of your business. This way you can request your inventory report at any time.
Or you could use the just in time system which notes changes to your inventory and alerts you just in time to make the purchase order so you never run low.
Generates Reports and Provides Insights
A good POS inventory management system also allows for the generation of sales and inventory reports no matter the time frame.
Saves Time and Reduces Cost
The POS system saves time and cost for a business owner. With this system, you cab finalize orders and facilitate a quick checkout system. It also ensures timely and efficient inventory management.
With the insights gotten from this system, you can make guided business decisions and reduce the occurrence of human errors. You are also going to reduce the risk of inventory theft.
A basic POS system helps the business along by so much and when there is an integrated inventory management system, you get an irreplaceable tool that will not only improve inventory management but also bring a positive overhaul to your management/administrative processes.