Today, the right POS system is more than just about managing transactions; it’s about finding one that will manage your entire business.
By Liza Marley
Point of sale (POS) systems have become quite complex, having evolved into an all-encompassing business solution and database. Highly advanced software allows a POS system to become an effective tool for managing business. It can collect data from a customer, create a detailed receipt, catalogue inventory, print sales reports, streamline ordering, provide statistics and handle accounting for the entire store at the push of a button – information that would once have taken extensive manpower and time to figure out manually.
There are a variety of systems available today; several of which have been designed specifically for certain businesses. While generic systems are available, opting for one customized to the intricacies of the natural health business gives retailers an exceptional set of tools to maximize sales and proficiency. These POS systems integrate inventory control and sales management whether a business is based online, in a retail location or is multi-channel.
Systems like Auto-Star, Multipost and East Coast POS have models that range in functionality and user experience. The business size and needs may dictate which system would be most suitable, as some are adapted for larger companies or chains while other systems are more suitable for a smaller business. Larger, more complex systems may require a full-time dedicated system manager or team to maintain, while simpler systems may provide the ideal solution for a smaller business without creating the demand for additional staff.
“Auto-Star offers a variety of solutions suitable for single cash lane health stores to regional chains up to 1,000 stores,” explains marketing representative Autumn Schweitzer. She explains that these systems have many features that can accommodate a business of any size, including additional functionality such as customized signs and labels, accounts receivable, customer loyalty and advanced reporting.
Other systems such as Multipost use different modules on a generic model to relate to any business. “They can add any module on once they figure out they want to run that particular program,” says Greg Smith, sales operations manager at Multipost. “Ours works for specialty stores in their specific industry.”
A retailer may not need or want to utilize all components of the system. Identifying the specific needs of each business maximizes the effectiveness of its POS system. It takes some training to master the functionality but ultimately, the POS system is an important tool in every aspect of daily business.
The idea is to maximize on the stock that will move quickly. A sophisticated POS system can produce reports that illustrates what merchandise is selling well and what merchandise is not grabbing consumer interest. Auto-Star’s advanced POS system features a scientific/suggested ordering function, which allows retailers to calculate purchase orders based on inventory that was sold in a specified time period “using a variety of factors, including seasonality of products, lead time from suppliers, next order date and more to accurately project the best possible order for the store,” says Schweitzer.
East Coast POS uses cloud-based reporting to monitor any number of stores, allowing information to return to head office, according to President John Mackeen. Other system manufacturers use similar reporting methods to seamlessly control inventory.
“In terms of integration with pharmacies, health food stores and suppliers, it automatically downloads the inventory into the store,” says Greg Smith, sales operations manager at Multipost. “We offer cloud solutions. Retailers with multiple locations and want to build access to stores can upload their head office system on the cloud and stores will run local information and transfer it real-time to the cloud.”
With cloud-based software also comes online sales integration. Multipost has teamed up with Shopify to prevent small- and medium-sized retailers from having to go to two different places to manage inventory.
“That’s the biggest problem retailers have. When a customer purchases a product online, it goes right into the POS. The inventories are matched in real-time,” says Smith. “We’re constantly changing our software to handle customer-centric information, so to be able to manage that in the point of sale and use that to do mail-outs and that sort of thing is good for the customer. Shop online to pick up in-store is becoming really popular so it gives the health food store and their customers the ability to quickly place the order online and pick it up at their convenience,” says Smith.
“A good inventory management system should handle seasonality. A good system will tell you when to stop ordering [a product] because we’re going into a season where you won’t need it anymore,” says Sanjiv Jagota, president of Nature’s Source, a chain of natural health stores. “Seasonality is very important where the system should have some type of memory of history.”
Jagota says that when choosing a POS system, he looks for features such as providing suggestions based on purchases, like one might see when making a purchase on Amazon. “It can give you options of what is available other than what you just bought. It can also track your history so if you ran out of something, it can tell you what you need to replenish,” he says.
Further, Jagota warns other retailers that when choosing a POS system, there can be consequences in choosing one that does not completely fit your needs. “You would hope that the company has the flexibility to change or update the system. There are companies that will do programming for you and they may agree that they’re missing a feature,” he says. “To avoid that, we have to do our due diligence. Internet and social media are big components now. If they’re not doing it, it’s not a good system.”
Beyond inventory management, the POS system is a strong sales tool. Though a good retailer knows their product, the product database in a POS system puts extensive information at the sales professional’s fingertips. It also allows the retailer to develop a strong relationship with their clientele. The POS system can collect a great amount of personal information during the transaction – from basic contact information to a client’s frequent purchases and preferences.
Auto-Star’s health retail POS system also includes a customer loyalty feature that “tracks spending and keeps customers coming back with rewards such as gift certificates, entry forms, discounts, points and free gifts,” says Schweitzer.
Multipost allows users to design their own loyalty program allowing customers to register online or in-store, and the system lets them tailor it to their needs. “It’s an effective tool to secure customer loyalty. We have a lot of customers who use the points program to secure their customer base, keep them coming back and rewarding them for doing so,” says Smith.
Wish lists and customer data collection are also important marketing tools, which can be used to send out newsletters if the POS is integrated with the web. Even more forward thinking are POS systems that can be used on tablets or even mobile phones. While Mackeen says East Coast POS can tailor its software to work on cell phones, iPads and other devices, Smith warns that may not always be the best idea.
“There are security issues that you have to be aware of. Sometimes you’ll see someone using a tablet and doing a card swipe. In Canada, you have a PIN number on cards, and they don’t connect to tablets at this time,” says Smith. “There are many POS systems that are running on tablets and they’re swiping cards. The retailer then has the liability shift to them if the card is stolen.” Smith goes on to say that manufacturers are starting to develop chip-enabled tablets, which should be available within the next two years.
Jagota’s main concern is a system that can handle accounting tasks in order to simplify day-to-day operations, however that may not always be plausible. “You would want to know what the margins are through an accounting system. Our challenge is most of the system of that nature are only designed for big companies,” says Jagota. “There aren’t that many companies that are vertically-integrated. They’ll have a module that talks to an accounting system, though you’re counting on both companies staying in touch with each other.”
A good POS system provides so much information and comparative data that retailers need to know how to use the data the system can provide to maximize their business. From retail reports that detail year-over-year, month-over-month or any specified period they wish to examine to stats and inventory analysis, and that information is invaluable.
