Gone are days of handling the financial transaction manually in the stores. Initially, the retail stores were installed with semi-automatic money registers where the transacting amount had to be entered manually. The other processes included using of calculators-to sum up the amount, conventional pen and paper calculation, printed cash memos and calculating all by hand. Manual stock maintenance too played a major part which was laborious and tedious. In these kinds of transactions, the loopholes of mistakes are innumerable. This is not the end, as the processes were time-consuming and a serpentine queue formed at the cash counter.
Point of Sale or the POS is presently used in the retail stores which not only gives accurate calculation every time with quality but also speeds up the transacting time. POS system is used to transact between the retail outlet and the promising customers via some hardware and software combinations. With the use of the POS system the cash money transactions, online transactions, amount calculations, and stock maintenance are put under one roof and connected to a single system. The automatic calculations in the system provide accurate calculation leaving no room for error.
What is the benefit of POS in stock maintenance?
The retail stores are all about the stock of the products in the perfect amount so that none of the customers has to leave empty-handed. You also need to check the products are not in excess than is required. Previously, maintaining the stock was done manually which consisted of the availability of the products, sale ratio and the future requirements. Presently, the time has been cut short to half with the scanning of labelled bar codes known as the SKUs or the Stock Keeping Unit. All you have to do is enter the required values and scan the codes to get the accurate available stock. Based on these the future purchases of orders are implemented.
POS and the reward programmes
Gone are days when the retail outlets sent birthday cards and mementoes as a remembrance that the companies value their customers. With the increase in the use of technology-centric systems like the POS, the retail stores are upfront to many kinds of reward programmes for their customers. While transacting through the POS system credentials like phone numbers and email ids are recorded for future references. The companies keep track of all the purchase history and send the customers special discount and rewards to service them with greater efficiency.
Presently, to compete with the virtual e-commerce websites, the retail stores are launching new ideologies like the pre-booking options for certain products. In case a good product is about to launch in the market and has the high potentiality to allure customers, the stores use the recorded database to send out pre-booking offers with pay later option. The customers can pre-book the product like mobile phones, television sets, cars etc. and pay for it later after receiving.
So, it can be concluded that the POS is an important tool used by the retail stores not only for themselves but also to service the customers in a better way.