The Advantages and Disadvantages of Having POS Systems in Your Business

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When you go to stores to shop, you always pass by the cashier to pay and checkout the items that you have bought. The whole counter of the cashier is what makes mostly the Point of Sale (POS) system.

This system often consists of a hardware and software-based or web-based program. Monitor, cash drawer, keyboard, barcode scanner, and a printer comprise the hardware part of the system. More recent POS systems have counters created for the customers permitting them to transact the payment themselves via credit or debit card before bagging and checking out the items. Furthermore, POS systems already have advanced applications that can perform specific additional tasks such as inventory, customer relationship management, financials, and more. Some POS monitors are developed with touch screens allowing the customers and/or cashiers to use them more efficiently and conveniently.

The benefits of having POS systems in your business include better inventory control and wider product selection. They can be incorporated into your company’s inventory tasks and in turn, automatically generates a purchase order and reorder items when the stocks are starting to run out. Moreover, it can decrease the amount of work and expense associated with running the business. As a result, your profits boost up and your customer relationships get better.

As for a wider product selection, business owners can access reports that show how many each specific items were sold and which are most salable to the general public. This sort of information is valuable especially when the time comes to restock the shelves or order additional supplies. Also, it lets you know seasonal trends in your merchandise; this allows you to take advantage of the public’s demands for goods and services, thereby also increasing your profit.

Nevertheless, the POS system also has its disadvantages. The web-based system is more expensive than the software-based one because you will have to pay extra for accessing the internet in a monthly basis. Also, if you have a software-based system, you will need to continue updating it with new versions in order to maintain its operations; also you may have to spend in hardware updates as well. Additionally, with the software-based system, you cannot get access to reports, inventory, merchandise trends, customer transactions, and other data because they are not grounded in the internet. Hence, visiting your other store branches just to check on how they are already doing may be quite difficult.

Another downside of the system is the security. Customers are required to use debit and credit cards at your POS stations thereby exposing some of their personal information such as their personal identification numbers (PINs). On the other hand, if you have the web-based system, you still have the same security risks. Although most providers of the POS systems offer significant security protection, they still can’t counteract the risk totally. Remember that since you are accessing the system through the internet, it is inevitable that viruses and worms, that gather confidential information and send them to the malicious cyber criminal, come secretly along your way. Consequently, they cause your system to crash either temporarily or permanently.

Therefore, having Fedelta POS systems is like looking at the 2 sides of a coin; there can be advantages as well as disadvantages. Either way, you can always choose the system installed after having a deep thought about it.
  1. 2012/11/16(金) 07:37:59|
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