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Last Updated: 28. June 2018

POS-systems: Why and Why not?

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A point of sale system is a business management and business intelligent software embedded in a hardware system, that helps to facilitate smart transactions and coordinated inventory. Accessible with a password or swipe of employee card for user identification during login users as well as ensuring restriction to specific functions, a ePOS-system could be installed in a computer, iPad and/or a special screen, that could be linked to several computers, accustomed with a cash register that includes a monitor, cash drawer, receipt printer, customer display, integrated access to debit/credit card reader and barcode scanner.

Part of its Business Intelligence features include its ability to accumulate contact/transaction information in its database, which could be useful in the future for marketing campaigns, provide preferred customer pricing, manage balances and credit limitation for customers on agreed terms, thus boasting customer loyalty through customers membership cards at the retail shop.

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A practical and well integrated POS-system increases sales value through accountability and accuracy within the business circle, as it enhances easy business coordination and reduces lots of uncertainty on stock documentation, receipt creation and other activities that is associated with inventory, cost control, risk management for service driven transaction.

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Coordinated inventory-: Imagine a sorted and categorized stock as made available by a POS-system, unlike the old approach where business owners need to count manually to know what they have in stock or just make random-routine order or re-stock without knowing what is left in their warehouse, a well-integrated POS-system helps take care of category issues, such as item description, size, colour, class, subclass, suppliers, substitute to the particular brand of product as well as related products.

Orders and purchases are managed effectively with the help of an integrated POS-system; it helps the retailer to focus on other business goals as the system takes care of unforeseen circumstances that may arise with demand. Transaction made services are managed easily by cashier, and administration are able to control the business effectively by overseeing activities of the limited access given to employees via the POS-system, including transaction trends, pre-set sales, quantity discount, preferred price levels and more.

The ability to store customer’s information such as demographics, preferences and purchase history makes it easy for a retail shop to establish a customer relationship and send offers, preferential magazines and other promotional marketing items to engage the customers on patronage to the shop. This feature is only possible if there is a historic record of sales transactions stored in the POS-system software.

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