Why POS is Important in Retail?
Having right technology in the retail business enables speed, structure and efficiency. It is imperative to adopt and upgrade to the systems for business growth, especially if it involves high volumes.We have come across many small enterprises left behind in a world of calculators, printed receipts, late night inventory checks and unorganized excel sheets. All we advise to them is – Investment in right technology is as important as buying a stock. Not having right systems in place is a handicapp situation.
The basic system any retailer can put is POS (It can be as new as MPOS) and Inventory Management
POS system can change the way retailer does the business, providingthem user-friendly interface, ease in business and managing scalability. Most of the mom & pop retailers ignore the adoption of POS considering the single shop and low volumes but in no time it becomes messy and uncontrollable. Inventories that fail to match tallies, unrecorded sales, human errors and the time spent on correcting them consume significant time regularly. Its no fun.
Installing POS enables the retailer to take business to next level on optimism usage of time, accuracy in the output, increases operational efficiency, standardization of business processes and allows the continuous improvement.
POS Brands available in the market
There are various companies selling POS systems in the market globally. There are companies specilizing in one category of retail such like Super Market, Apparel store, Electronic stores etc.
Companies like Go Frugal, LS retail, Yash are very well known for its use in Super Markets. DMart uses Yash computers. There are many other companies that are less expensive.
Logic, Shoppers9, Ginesys, Retail pro are very well known companies selling POS & Software for Fashion &apparel Category. Some of the leading apparel brands like Raymond’s, Manyavar, AND, Ritu Kumar use these softwares. However there are many small companies also selling little less expensive POS as compared to Shoppers9.
C Square and LS retail are mostly used in electronic store format.
The price of these software starts from as low as INR 18000and goes upto INR 8 to 10 lakhs depending upon the features of the software and number of stores of the brand.
Big brands like DMart, WalMart having more than 100 stores, go with the system having maximum and relevant features in the market. However, small retailers have the option to see suitable POS & Softwares for their business. Not every ones requirement is same and it is very important to understand the requirement before investing in infrastructure.
The software is designed in such a way that it gives integrated solutions at different level of channel of distribution like ware house – headoffice – stores. This ensures that there is no chaos in retail operations especially inthe allotment and free flow of stock. It avoids under stocking, overstocking and shrinkage of products ensuring replenishment whenever the store demands stock.
Choosing a right IT infrastructure is key to effciency and busienss growth. The approach to choose the software is utmost important as most of the POS and software compaies try to oversell their product and make promises that many not be correct. It is important to either have a person in your team who knows about the right IT infrastructrue available or to hire a consultant for sometime to guide you on right software suitable for the business. A consultant would also be able to give an insight about the brands using or exited particular software or business lost due to operational problems of respective POS and IT software. It is better to take advise for the expert before making high investment on IT for your business.
Some of the benefits of a good POS that helps in better business management are as under-
- Anytime Anywhere access
- Strict InventoryManagement
- Avoids Malpractices
- Tracking of customer data base
- Insights on trends based on sales
- Forecasting & Store level Profitability
The Publisher of this newsletter is Elargir Solutions Private Limited – India and Singapore. Elargir Solutions is a Retail COnsulting and marketing company, specialising in new market entry, research branding and content marketing. Need a business advisory? Write to us at firstname.lastname@example.org or message us at +917506838052 or Whatsapp us at +6598501106