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Point Of Sales Systems

Nowadays, most retailers use computerized inventory management system called POS (Point On Sales) system to control their inventory efficiently. This essay will compare the POS system with manual inventory to find which is better for their business. Comparison items are: cost, speed, tasks, errors, and achievement of customer satisfaction. First, lets talk about the cost. The POS costs a lot to install and maintain the computer systems. In addition to it, it also costs to educate employees to use the POS. However, once it has been introduced, it would be easy to maintain the system. On the other hand, the cost of manual management is a salary for inventory personnel same as for other employees. Today, high salaries expense is a headache for companies. In this aspect, the POS system costs much cheaper than manual one in a long view. Next point is speed. The POS system can provide just- in-time inventory that means every item is always on the shop's shelves without time lags. Information about all items is being sent to whole sellers directly. As a result, consumers can always buy what they want to buy. The whole sellers can tell which item is running out now. The manual management sometimes has time lags because of its inefficient distribution system. Managers should order to whole sellers to bring items every time. In this aspect, the POS system can perform more effectively. Next point is the amount of tasks. Using the POS system does not need to do something special because all inventory data is being sent automatically. All employees have to do is only scan bar cords. It is no need to say that the manual management requires much more tasks. Every day managers should check the number of inventory and predict how many items should be ordered. It is a very cumbersome and time-consuming task. The POS was originally introduced to reduce human tasks. There is no comparison between these. The next point is a number of errors. Order errors hardly happen because the POS system is a computer system. On the other hand, human activity is a tissue of mistakes. Both managers and whole sellers make more mistakes than computers do. Some errors could be about the items and others could be about the prices. The POS system can control inventory without mistakes. The last point is customer satisfaction. As a retailer, the most important thing is to build a good the relationship with customers. Customers would be disappointed if the product was sold out when they went to the shop. It means the customer's satisfaction was not fulfilled. As I mentioned above, the POS system can reduce time lags and empty shelves. It also provides customers with popular products because items in the shop are being updated according to data from the POS system. It is very difficult for manual management to perform. Considering from comparisons, the POS system is an epoch-making change for retail businesses. The POS system allows companies to sell more and to reduce cost and time.

December 1999