An effective POS should achieve the following objectives:
1) An accurate inventory status
A POS should be linked directly to the inventory database. For many traditional business, keeping an inventory itself is a nightmare, and this is the main reason why most mom-and-pop stores are not scalable and pilferage rates are so rampant. Installing an effective POS system is more than just having a cash register machine that can scan barcodes and print fancy receipts. Rather, a POS must be planned thoroughly before implementation.
To maintain an accurate inventory status, we must first have a system that allows inventories to be tracked the moment purchase orders are sent to the suppliers. When the stocks arrived, we must have a store clerk that verifies if the goods received are the same as stated in our purchase order. We must never use the invoice that is attached together with the delivered goods or any other documents other than our own purchase order, as there is very likely discrepancies. Our own purchase orders will always be the most accurate list of goods which we ordered.
After the goods has been verified, any discrepancies must be sorted out with the supplier in the shortest time frame. The goods must then be stored in the warehouse.
Storage can be categorized into 4 main usages 1:
1. To make available a balance flow of raw materials, components, tools, equipments and any other materials necessary to meet operational requirements.
2. To provide maintenance materials, spare parts and general stores as required.
3. To receive and issue finished products.
4. To accept and store scrap and other discarded material as they arise.
The major responsibilities of Stores are:
• Identification of all material stored
• Receipt of incoming goods
• Inspection of all receipts
• Storage and preservation
• Materials handling
• Packing
• Issue and dispatch
• Maintenance of stock records
• Stores accounting
• Inventory control
• Stock-taking
So, as long as there is proper storage management, our POS can effectively update stock levels and allow the Purchasing manager to monitor and restock whenever stock threshold is low.
A store management system that is integrated with the POS is a very challenging task and requires a lot of planning.
2) Anyone can be trained as a cashier
A cashier is one of the most difficult position to train and trust. However, it is not impossible if we do it right.
Via ScoreDelaware.org…
Prevent Cash Register Theft
The cash register is a prime target for theft. Literally putting a hand into the cash drawer doesn’t happen that often, but the cash register is an easy spot for less obvious theft. For example, a customer pays for an item with exact change and hurries out, so the clerk doesn’t ring up the sale but pockets the money. Another example, a friend of an employee buys something in the store, so the clerk enters the item at a discount. Whether this is a common or uncommon occurrence, you should have procedures in place to govern the cash register. It’s up to you to establish the controls that make it more difficult for a potential thief to actually dip into the till.
You want to believe that each employee is honest. And, most employees are honest and want to be treated with trust. The best way to avoid difficult situations at the cash register is to have a clear policy that all employees follow. Each employee should have a separate cash drawer. Count all cash on-hand at the start of a shift and sign the register tape. The sales tape and cash in the drawer should balance. A fresh cash drawer with a designated amount of cash for making change should be given to the incoming cashier.
If two or three cashiers work with the same cash drawer, it is very difficult to discern where honest mistakes are made or when cash is taken. Overages and shortages do occur. You want to be sure that happens as little as possible. Careful cash procedures set the tone for all employees that the cashier’s job is to be taken seriously. If large amounts of cash move through the registers, you may want to install a visible surveillance camera, which tapes the cashier’s activity.
Cashiers should give each customer a receipt for every transaction. Since each sale needs to be entered into the register to obtain a receipt, this is a simple control to discourage the cashier from pocketing the cash on an exact change transaction. This transaction method also prevents the clerk from under charging for an item and pocketing the difference. Customer are likely to notice and call attention to a receipt showing that they paid less for an item than they were actually charged.
The store owner or manager should approve and sign all voids and over-rings. This procedure gives the management employee the opportunity to monitor the cash process. This also prevents a cashier from writing out a phony over-ring and removing an equal amount of cash from the drawer. Additionally, the owner or manager should ring up all employee purchases. This practice will prevent employees from abusing an employee discount through seriously undercharging the price of an item.
Cashiers should read the amount of each item aloud as the amount is entered into the register. Besides reassuring the customer that he or she is being properly charged, the procedure helps prevent careless mistakes that may result in entering a high or low price into the register. Cashiers should immediately replace register tapes that run out. It’s easy for a dishonest cashier to let the tape run out, then simply avoid ringing up a few sales in order to pocket the cash. In this case, the store has no record of the transaction and there’s no way of identifying the theft.
It’s up to you to protect your investment. It is also your responsibility to see that all employees are treated the same, whether you have a high or low degree of trust in their integrity. If you have an across-the-board procedure, you can more consistently monitor cash register activity and discourage theft simply by watchfulness.
3) Generating a Daily Sales Report for business analysis and accounting purposes
This is straightforward. Most POS would already have a good reporting module built into it.
Here are some of the commonly used accounting software in Malaysia:
1) SQL Business Software
2) UBS
3) QnE Business Solutions
4) MYOB
5) AutoCount
6) Fact Software
7) Exact
It is recommended that the POS you have purchased is the same system provided with the accounting software. If you are getting your POS after your Accounting System, ask your existing accounting system provider if they have a POS module.
Otherwise, you will have to go through the trouble of integrating 2 very different systems- the POS and the Accounting software. You should only opt for this procedure if your accounting system does not have a POS module extension, in which case you should really consider changing your accounting system. Integrating is a lot of work, and you need very dedicated vendors to assist you.
4) Customizable to your business needs.
A lot of business owners do not study the specification of the POS system before making purchases, only to realize that it is ill-suited for their existing business operations. This can be avoided if you exactly what you want out of the POS and by getting a system provider that has a good reputation. The last thing you want is a solution right off the shelf. How can a system provider who has never seen how you run your business know what you need?
Reference:
1. http://www.scribd.com/doc/13595895/Store-Management
One of his major concern when it comes to florist management system seems to be the pricing. From my conversation with him, he seems to be more inclined towards a one-off setup and go model, where he will pay for the installation of the system and get to use it once and for all. Probably pay another couple of hours for support, troubleshooting and training.