Meaning of Point of Sales System
There is a need for administrative, managing, and skills of marketing to operate calls for retail stores. For running the stores smoothly there is a need to ensure that the monthly sales report, skills are put together. For running the operation smoothly in small businesses there is a need for an efficient point of sales system.
The point of sales system can be defined as the arena where customers pay for the product or the service which they buy. In simple terms, the point of sales system means that every time during the process of buying by the customer, the point of sales transaction gets completed.
The benefits of the point of sales system can be seen as about 56% of small scale business group have adopted the method and rest still uses the combination of methods manually like the use of cash register, Quick Books Excel, etc. Some of the retailers have not yet adopted the POS as they consider adopting new technology in terms of handling business can be very risky and overwhelming. Some retailers were mostly aware of the negative side of the POS.
The point of sales system (POS) runs the regular operational part of our business smoothly with the software and hardware components. The business can be easier and smooth with the use of POS software which includes certain advanced features. A clear understanding is required for the option which is provided.
Differentiation between POS On-Premise and POS Cloud
- Buyer can buy more than one licenses and then can install the software on the system of computer
- The maintenance and the up-gradation of the software becomes the responsibility of the buyer
- IT personnel who are much more dedicated are required to maintain the software for a large organization
- Up fronting of the hardware is costly
- The software is accessed able by the buyer on any device connected to the internet
- Updates of the software are automatically been pushed in the POS
- It has the lower cost of up fronting
Some Common Features Of The POS Software Are:
1. Reporting on sales:
- On the ground the POS system allows us to look after our sales. The differentiation lies in those numbers which are to be presented and can be accessed later.
- The POS helps to generate the report of sales based on the product, profit, net profit, etc.
- It enables us to get a quick Snap chats of the performance in sales at stores.
2. Managing inventory:
- This can be said the most important function of the POS system i.e. the inventory management. It enables us to keep track of the products which we have and let us known the specific time of delivery.
- It allows us to manage our stocks by generating variations among the products.
- Track the product across multiple locations.
3. Managing customer:
- The relationship with the customer should be built strongly for the continuation of the business with them
- The POS helps to maintain the data of the customer
- The POS system enables us to capture the information of the customer i.e. age, name, etc
- E-mail acts as a media to connect to the customer and keeping them updated
4. Reporting of employee and managing:
- POS adds employees to the company’s system
- POS system creates a modified schedule for the employees based on their performance
- It keeps the track of employees’ overtime
- It also analyses the employee whose performance is at top
Hardware Components Of A POS System
The hardware generally contents all the physical components needed for the successful running of POS. The hardware is as follows:
- Monitor/ tabs: The main function of this hardware is to display the customer database and other running functions needed in electronic point of sale. It also allows viewing the sales report and the clock-in of employees. In recent days the tabs are most popularly used in place of the monitor due to its size flexibility.
- Barcode scanner: The main function of this hardware is to automate the process of checkout. Simply by the barcode scanner, the bar code of a product can be scan which helps to pull out the information of the product and the ads during the checkout total.
- Credit card reader: The main function of this hardware is to read the credit cards of the buyer.
- Receipt printer: Though in recent days the mail and text had gained importance but still the receipt in the paper has been essential for giving a quick snapshot to the buyers in hand.
Benefits of POS Systems
- POS system software helps by streamlining the retails operation through the automation of the transaction procedure and keeping track of the important data of sales.
- Through the POS system software, the retailers basically can have information about the pricing, sales pattern, and many more.
- POS software system allows the retailers to keep a monitor on the customers buying good and helps them to avoid issues related to the customer service.
- The POS software system basically in the hospitality sector allows the customers to directly interact with the system.
- The POS software system allows having a better hold upon the business
- Analytical thinking and planning is allowed by this software which helps to flourish the business
- The business efficiency gets increased through this software system
- The personal client gets the opportunity to communicate more efficiently.
There is the various system as the different business have different profiles so that’s why they need a POS software system to maintain the business.
There are two primary kinds of businesses one is the companies of retail and the other is the hospitality business that means there is also two kinds of POS software system to handle both businesses.
This software forms through the combination of both hardware and software. It is not only regarded as the point of sale but also regarded as the point where customers can return. The customer’s details in the POS system become the way of generating communication among the clients. Based on this information an individual can build u a program of their own.