Tuesday, 22 October 2013

Effective Inventory Management using the right POS software

The positive superiorities leveraged by a point of sale system onto a business is nothing not known about. Retail or manufacture - both industries are vastly influenced by the use of POS software, in myriad ways. And business owners in these two sectors are well aware with the bottom-line impact that effective inventory management practices leave behind. So, on the whole, a broader picture suggests a succinct collaboration of efficient inventory management and point of sale systems to keep discrepancies in businesses as much at bay.

Precise inventory management would imply keeping a track record of the inventory numbers, product orders, their sales and deliveries, etc. this sure would help the business owners in managing product overstocks and outages, at the same time. The bare minimum to tracking inventory levels would come down to either maintaining a hardcover book or a virtual spreadsheet. Both of which can be absolutely applied to the businesses free of any costs. But that would only become cumbersome and faulty. Of course, then there are those run-of-the-mill, specific inventory management software available in the market. But there’s a better option also available - effective inventory management integrated into POS systems.

Before proceeding any further into the union of point of sale systems and inventory management, let us skim through a little background on managing the inventory. An old theory, born in Japan, quite easily educes the basics of right inventory management, which is Just-in-Time: meaning you supply as per demand. There should be no scope for excess/ surplus inventory items to be stored in the backend. Well this certainly is an ideal situation, but in reality that is far from possibility. Simply because you can never predict the demand and variations in demand beforehand, in most cases. Too much of stocks in the backend would mean loss of liquid assets, while zero extra assets would mean a dry business!

Coming back to POS systems and software, the integration of inventory management with POS systems though has made effectual the application of Just-in-Time today. Simply because, POS systems are so multi-faceted that forecasting demand and supply statistics has become quite easy. The entire underlying fundamental concept of inventory management is to avoid having any tied-up capital at any point in a business.

Since, POS systems are a consolidated hub to gauge, check, expect and track sales and other sales-related information, they become one-stop destination to elicit any information regarding sales. For example, for obvious reasons of electronic (impeccable) tracking of sales, one can very easily judge
- The market and customer trends in buying,
- Which articles sell most in which season?
- Which items have a peak period of liking with the buyers?
- Unique customer behavior,
- Product feedback and “want” in the market,
- Overall sales history as well as pertinent to a specific product,
- Products that aren’t selling well in the market.
- Or choosing the choosing the clearance items.

These are just a few of the outcomes to name on the fingertips. There can be many more elicits and, likewise, elucidations to be worked out.

Secondly, POS software will help you give a deeper view into the success or failure of your discounts and promotions deployed. You could devise a new marketing approach in-sync with the results fetched from the research. At the least, from one spot you can very well handle the inventory levels of disparate stores under you.

All of this gives you an extended hindsight into aptly managing your inventory items. The key to effective inventory management is through the use of right POS systems.

1 comment:

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