POS system is designed to help a seller record a sale transaction detail and provide proof of purchase to the buyer, it is usually presented as a receipt either in physical copy or digital form which send to the buyer’s email.

There are many benefits to using a POS systemLinks to an external site. to manage a business. Mainly because the POS system has proven to increase the speed of checkout and reduce human mistakes as compared to issuing receipts manually.

The first electronic POS system or ePOSLinks to an external site. was created in 1960s by IBM powered by its 1401 computer McDonald’s adopted such technology in 1974 which remains today as the blueprint for the modern POS used in many restaurants.

Different types of POS solutions

One of the key functions of a POS system is to manage the inventory. If you are a retailer selling tangible goods, it is important to keep track of the available quantity of any SKU. Managing inventory is important as it helps to minimize losing inventory or holding too much of a particular type of product.

Modern POS systems are built-in with inventory tracking capability and connect directly to the sales journal. The inventory will automatically be adjusted whenever a product is sold and payment is collected or quantity added when customers return the items to the store.

For the restaurant, it has a different type of requirement. The most common functionality is table management to help the waiter keep track of the table availability or use a timer to monitor the dining time.

A more advanced F&b POS system will provide portable devices for waiters to take orders right next to the diner. It provides quicker services and minimises waiting time which increases the customer dining experience.

Build in promotion and discount

Giving promotion to the customer is one of the common marketing strategies in the retail or restaurant business. There is a significant impact on the revenue whenever they run a promotion.

POS systems usually come with such functionality to automate the calculation and help cashier to minimize errors from manually calculating the discount given to their customer.

Customer purchase history

Each sales transaction captured by the POS system consists of valuable information such as the amount spent, time stamps, or products that the customer purchased.

POS system archives this data automatically into the database and it is used when the customer requests a refund or exchange of product. Without this information, the cashier will have a hard time trying to recall the details of a past transaction and it also causes inconvenience to the customer.

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For some high-end POS systems, the sales data are also aggregated into reports or dashboards which entail some important information to help the merchant better understand their business and make decisions.

Conclusion

POS system is a mission-critical IT system that every business should use. The pros outweigh the cons and it is a proven solution for more than half a century. Unless the business only intends to operate for a short period of time otherwise, the seller should always get a POS system to help them manage the mundane tasks.