What is a POS system?
The full name of the POS system is Point of Sale, which refers to a set of systems composed of hardware and software that can assist stores in handling store operations such as inventory, purchase, sales, and invoice management. According to different industries such as catering, retail, stores, service industries, and other store types, there will also be functional differences. For example, catering needs to distinguish between takeaway and internal use and add the function of taste adjustment. In contrast, retail POS needs functions such as purchasing goods and solving consumers’ return and exchange problems.
Components of a POS system
Currently, the standard POS systems in the market can be divided into mPOS (Mobile POS, which refers to POS mounted on mobile devices) system and traditional hardware POS systems, but no matter which one it is, the core of a POS system can be composed of hardware and software.
Software is the core of the entire POS system. Through software, the system can record sales information in real time and organize relevant reports. Hardware is a peripheral item that cooperates with software, and other peripheral operations can be completed through different hardware, such as label printing machines, scanning product barcodes, etc.
System software
The POS system software is most commonly used directly in the hardware, and mPOS is presented in the form of an app. The first type can be imagined as Office, the document system commonly used by our computers. After purchase, the manufacturer will directly pour the system into your computer. The latter is similar to downloaded mobile phone apps. The app will be downloaded on mobile devices such as smartphones and tablets and can be used immediately after downloading.
The biggest difference between the two is the data storage method: traditional hardware data will be directly stored in your computer, and there won’t be any backup in other places. When data needs to be transferred, it needs to be done manually. mPOS saves the data in the cloud, and the data will be saved in the remote host. When the hardware fails, the data will still not be affected.
The other is the system maintenance method. The traditional POS is directly installed on the personal hardware or computer after the engineer writes the program. If the software needs to be maintained or updated, the engineer must analyze, update, and repair the individual machine. For the POS system of mPOS, engineers can maintain it remotely. When the software has new functions or is regularly updated, users can use the updated software through app updates.
System hardware
The hardware can generally be increased or decreased according to the needs of the store, and the hardware used by mPOS and traditional POS will also be different. Like mPOS, the essential equipment needed is a tablet in order to use the app by downloading it. Depending on the manufacturer, there are also different regulations for tablets. For example, some are limited to iPads, some are suitable for Android, and a few can be used for both. Because the traditional type is to pour data into the hardware; therefore, the system screen and host computer are necessary hardware.
Benefits of POS System
There are many benefits to using a POS system for opening a store. Let’s do some discussion here:
POS can effectively improve the efficiency of the store:
Traditional cash registers rely heavily on humans remembering prices and information for every product in the store. As you can imagine, as the variety of products (the number of SKUs) in the store increases, or every time a new employee is hired, the efficiency of this transaction is greatly reduced. With POS software, all the product information is already available to the person; all they need to do is to scan the product barcode and see the details of the product, making the checkout process faster and the queue shorter.
POS can assist with inventory management synchronization:
As discussed earlier in this article, retail stores have found that switching to POS software can immensely improve inventory management efficiency. When setting up a POS for the first time, simply enter the quantity in stock of each product on hand. From then on, the software adjusts the inventory quantity itself for each order processed.
Returns and exchanges are even handled with ease. Simply tell the software what product the customer is returning and have it adjust the inventory quantity accordingly.
The POS system can generate sales reports in real-time:
Most POS software applications provide sales reports and trend analysis. Both of these methods can help businesses make decisions about business development, and they can also use these reports to forecast future demand and track sales over time.
Effective management of employee performance:
With POS software, the codes assigned to employees can be used to track employees and checkout speed. Before employees can process an order, they need to enter the employee code first. Not only can you improve speed, but you can also review feedback from customers to find out which employees are performing well and which employees need more training.
Directory Consistency:
For retailers with multiple geographic locations, maintaining product catalog consistency can be challenging. POS software can maintain a catalog of digital data that can be obtained across regional branches. In other words, even during the sales period, there is no need to worry about cross-regional branches needing to set the same product price, instead, it is done by POS.
POS Security
Although POS systems have more advanced technology than simple cash registers, POS systems are still vulnerable to scams by employees going through the sales window. A dishonest cashier in a retail store can collude with a friend who pretends to be just another customer. During checkout, cashiers can profit from “free” items by bypassing scanning certain items or entering lower quantities for certain items.
In some cases, POS cashiers can even take advantage of the ability to issue negative receipts to easily withdraw money from cash drawers.
To prevent this kind of employee theft, the POS system must provide an administrative window for the boss or administrator to generate and check a daily list of sales receipts. The list refers to receipts that were canceled before completion, returned receipts, and negative receipts. This is an effective way to manage and alert the company to any suspicious activity that may be taking place (such as a cashier canceling a high number of sales) and take surveillance measures.
To further prevent employee theft, sales counters should also be equipped with POS system cameras to monitor and record all activities.
In addition, the system provider also prepares corresponding management permissions for professional managers and sets passwords for trusted administrators to protect prices and modify permissions. Any changes made should also be recorded and be able to be retrieved later for inspection.
Sales records and inventories are very important to the business. These data tell the business operators what the best-selling products are, who the suppliers are and how much profit the company makes from them. This is also an essential part of big data analysis. Therefore, the databases that generate these reports should also be protected by passwords or by encrypting the data stored in the databases to prevent them from being copied or tampered with.
Do business better with OrderPin POS
Finally, if you are running an F&B business, and you just need a simple and easy-to-use system that can accurately solve the problem of opening a store, OrderPin POS is a good choice for you.