Can a Retail POS system help with inventory management?
Retail POS system inventory management is a cornerstone of any retail business. It’s not an exaggeration to that; it’s a significant player in their success.
This may sound daunting but never fear –all you’ve got to do is understand why and how to make your retail POS system work.
So, let’s explore that in a little more detail.
What’s Inventory Management?
Inventory management allows you to keep track of product quantities within a warehouse, in-store, or with other retailers and distributors. Tracking inventory enables you to calculate how much you have of each product accurately.
You know when stock is low and whether you need to re-order your items. The process is simple and is doable at a glance.
Did you know?
Shops who are using their POS data to analyse the difference between shopping online and in-person are giving themselves a competitive advantage!
Statistics show, more than 52% of restaurants have upgraded their old system to a POS, namely because business owners find this system so much easier to use.
Why’s Inventory Management so Important?
According to a study conducted by the University of Chicago, 65% of inventory records kept by retailers are inaccurate. Although this is a vital aspect of business that can cause costly business decisions, many fail to do this correctly.
Accuracy heightens for omnichannel retail. According to the same study, 44% of American consumers shop multiple channels.
Consumer behaviour is becoming increasingly complex to track manually. POS systems can gather data from selling and fulfilment channels and sync them together.
Inventory management tools and generate reports based on the data it receives. These can provide insights into your inventory, warehouse(s), purchasing, marketing, and consumer behaviour.
Data received should be analysed for inventory management techniques.
The primary purpose of inventory management is to gain actionable insights in real-time as opposed to presenting a load of numbers in a spreadsheet for someone else to look for trends.
Save Time with Automation
An objective in inventory management is to automate several tasks related to tracking and managing inventory. This gives an employee or employer more time to spend on doing jobs that will help the business to grow.
A common thing for management systems to do is categories products for you, reorder inventory when stock levels are low and to generate reports.
In addition to reducing labour costs, POS systems can also contribute to a business’s profitability. Having a deep insight into your business can help make informed business decisions and to grow.
Which Retail POS system Inventory Management Features Are Essential?
You want a POS system that allows plain sailing by boasting the following…
Ease of Use
Some inventory systems are extensive and can store information on hundreds of products. But if a solution is hard to navigate around, you’ll waste valuable time searching when you could be doing something more worthwhile.
You need to ensure that the system your using allows you to import items in bulk; otherwise, you’ll have hours of data entry.
Does it Cover the Basics?
Take a look at the systems inventory management. You want to ensure the features you want are available with the plan you’ve purchased. Most inventory systems feature the following: real-time monitoring and low-stock alerts.
Major benefit of an all-in-one system. If you’re using an outside inventory program, then it may not sync up with POS. It’s vital to ensure that the inventory software being used will run smoothly with any add-ons.
If your business operates out of several locations, then it’s vital inventory management runs fluidly between stores. Look for essential features like the ability to set up transfers and delivery of stock from one location to the other.
A Few Things to Note
It’s also worth bearing in mind the following…
Effective Inventory Management = Happy customers
Inventory management practices are essential as they ensure that the goods a shopper desires will be in stock.
This, in theory, increases customer satisfaction and encourages them to come back. It avoids losing sales and customers to competitors due to the availability of products.
POS’ are a good way of managing this. The system allows you to forecast your most popular items based on previous sales, set minimum re-order levels, and real-time reports specifying which SKUs are selling.
This makes it easier to track supplies and ensure you have the correct stock for customers when they want it.
The inventory management POS System can also determine whether out of stock items are available from other locations or distribution centres.
Delivery of these items can go to the store or directly to the customers home. This results in happy customers and salvaged sales.
Effective Inventory Management = Low Storage Costs
It’s hard to believe but storing unneeded excess inventory causes considerable financial outlay.
The POS system is suitable for reducing inventory storage bills. It’s difficult to purchase more items than will sell when your inventory management tool reviews data from your POS system.
The less excess inventory a business has, the less storage space they require for unwanted goods; therefore, less money will be paid to store this inventory. Make sense?
Looking POS records allows you to quickly identify which items are moving slowly off your shelves in comparison to other products. Items can then either be marked for rapid sale and avoid being reordered.
Decent Inventory Management = No Unnecessary Overhead
The cost to maintain inventory includes an insurance cost, risk of obsolescence, damage, inventory taxes, and opportunity expenditures.
The money spent on this could is spent better on something else in the business, like advertising campaigns or loyalty programs.
The longer inventory is stored for; the more costs will accumulate. When POS systems harness data, it means the business will be more on target with quantities of merchandise orders.
Ready to Start Using a Retail POS System?
Hopefully, all of the above has helped demonstrate the importance of inventory management for retailers and has highlighted the significance of a retail POS system. Contact us today for more info on the topic!