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Introduction to POS

By Mac McCarthy

AllBusiness.com
Date:Wednesday, September 20 2006

A Point of Sale system is, at heart, a cash register — but because it's based on a PC, it can be enhanced in various useful and interesting ways.

For example, a cash register is usually a heavy object that sits in one place, records its operations on paper tape, and operates a cash drawer. A POS terminal, by contrast, can be networked to other POS terminals, and to a server in the back room, or at another location. It can be expanded with handheld devices wirelessly linked to the main system, and it can track a far greater number of operations in more useful ways, and its software customizations changed over time as your needs change, or as you think of new things you want to record, organize, and analyze.

The main advantage of a computerized POS system over a cash box or a cash register is the sophisticated and detailed sales reports you can get. You can look at sales many ways, including by SKU (item sold), time periods, promotions, by store if you have more than one, even by sales clerk. It can also help reduce employee shrinkage. It will help your inventory manager buy in the right number of cartons of tissue paper with improved timing, and help your chef calculate how much cheese to order for the coming week, taking into account an upcoming holiday.


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