New POS System: Successful Business Operations
POS system has become a key component of successful business operations helping the companies to gain competitive advantage. In relation to the current case study of Four Seasons Greenhouse and Nursery, there is an analysis related to POS system is conducted and presented in the following sections.
Advantages and disadvantages of the new POS system
There are following advantages and disadvantages of POS System (“Justin Guinn”, 2018)
|Register screen||This is a standard monitor screen which displays product database. IT enables different functions, such as employee clock-in and sales reports view. It makes an ease to use the system.|
|Barcode scanner||This is the advantage of POS that hardware has Automated the checkout process. As by scanning barcodes, product info is pulled and will be added to the checkout total. During barcodes scanning, products details may also be integrated with inventory management.|
|Credit card reader||Its and advantage because if retailers does not have the standard payment system then the business may suffer due to fraud. Credit card reader provides secure medium of payments.|
|Receipt printer||Prints of the customer sales can be provided instead of Email and text receipts, Which will give an immediate snapshot of the customer sales.|
Apart from above merits there are certain demerits of POS systems like:
- It may be a problematic situation when there is a slow Internet connection
- If there is some upgrade in POS hardware, you will need to upgrade it time to time.
- Cloud based POS Systems is maintained with monthly fees (“Justin Guinn”, 2018)
Ways POS system can help the business gain competitive advantages
As POS is all related to the technology enhanced in so first important thing to understand is Software options available and its requirements. These requirements include Software Components meaning two deployment methods are there for common software development. These are:
- On-premise: This is a traditional software model. One or more licenses of the On-Premise can be purchased, and can be installed on the computer system or servers. It may require a dedicated IT personal for larger organizations to handle and maintain the software.
- Cloud-based: These type of software components are also known as Software-as-a-Service (SaaS) POS solutions. It needs to access the internet to work. If the internet access goes down it can track sales and sync the data after internet is back.
Further, there are certain ways by which POS system help to gain business. Here the first way is that POS maintains accurate inventory data which helps in decision making which in turn gain the competitive advantages. Further its accurate inventory also eliminate guess work and provides the real cost of everything which in turn helps to calculate the real gain (“Quorion”, 2018)
Advantages of having a centralized database
Having centralized database, there are following advantages.
- Change of cost of product can be updated and will be visible at different stores available at different locations.
- Employees can be asked to set their sales goal which will be updated in the database and can be seen by other store employees by which they can feel motivated
This is the advantage of POS that software are already available of the need bases if we want to have system which needs no internet access can opt for On-Premise and if needed for internet connectivity Cloud-Based can be used. As it was not easier for “Four Seasons Greenhouse and Nursery “ to maintain the large sales d manually and it was effecting their $1M business so they decided to do something better to handle the situation. So centralized database helped them grow.
POS system and decision-making
POS facilitates decision-making. . Decisions on how many units of a product to order were no longer based on speculation about current inventory. POS process business activities more effectively because of accurate inventory counts, guesswork on order quantity is helping the business to operate on leaner inventory units. This information cannot be tracked manually so effectively because it will be too much paper work also will not be able to maintain. There are following types of questions which can be answered
- How many units of products to be ordered.
- What is the real cost of the product to gain more profits.
Information can better be use to order the new stock and to maintain the database of the real cost of products and the gains.
POS (Point Of Sale System was introduced in 2008. It is defined as “A point of sale system is a combination of software and hardware that allows merchants to take transactions and simplify key day-to-day business operations.” By Yamarie Grullon, manager of content strategy at ShopKeep. The POS system can communicate to each other via POS-server which is available in LAN(Local Area Network), if the POS PC systems has a support of TCP/IP or UDP data transfer protocols. WAN (Wide Area Network) is a network of computers, which is used to exchange information over long distances. It is required when you want to connect within several countries or even worldwide. It is larger than a LAN. Types of media can be any wireless or wired technology for both types of networks. LAN and WAN. But wireless technologies are recommended as follows:
Wireless – There are following wireless POS available in market
AccuPOS provides a wide range of POS systems for retailers and restaurants both.
2. NCR Silver
NCR provides a full-fledged wireless POS system for the iOS platform, with compatible terminal software for the iPad, iPhone, and iPod Touch.
It was known as Deploid initially. Signage.biz works for the retail and restaurant industry (“Quorion”, 2018).
Risks associated with POS system
There are following risks with POS system like Software and Network Weaknesses where Most of the POS problems come due to drop of network as many times network is not secure. Hackers can get into the network and can steal the information such as customer’s credit card numbers other business account details, which will hamper all three factors security, privacy of customer and confidentiality of the business. If software is up-to-date then also it is vital. That’s why companies keep releasing patches and improvements for their existing software so that such type of threats can be handled. So there is a need to be updated always. Finally, there are three POS System Security Risks You Need to Recognize. These are device faults and other threats. Under device faults most of the time even if the network is secured; devices needed to be secured too. Guard your computers and tablets with a passcode (“Tallysoft”, 2016). Further under other threats as cybercrime is growing day by day and become more sophisticated and malicious. Even if it is unfortunate but still all companies has to face it. Security in secure access-becomes more important for wireless data communication than wired communication (Christopher, 2018).