Loss and theft is a loss for retailers. The profit margin per product is less. POS technology is a revolutionary breakthrough for retailers to enhance customer service and reduce shrinkage.
Retailers deal with a large amount of influx of inwards and outwards of products. Loss and theft are one of the biggest concerns for a retailer. It incurs a loss to the business. Retail business leaders are looking for ways to tackle the challenge of shrinkage. The best POS system will help to simplify this challenge for you.
Irrespective of what size or sector business you have, shrinkage is unavoidable. Loss and theft can happen at any level and quantity. Shrinkage is not only a result of internal or external loss and theft but also a result of damaged products. Your staff can make mistakes, consumers will steal, or any other loophole for loss. Every retail business leader or owner should have these questions:
- What measures have you taken to reduce shrinkage?
- How much is your shrinkage percent, and how to curb it to a minimum?
In this blog, we will take a look at what is shrinkage, and how does it happen, and how will the POS system help to reduce it?
Keep an Eye on Your Inventory:
A retailer or a local business leader needs to keep a close eye on the stocks. Retail business leaders should be able to track the quantity of purchase, the product sold, and how much is stolen or lost. It helps to understand where are you are losing money and how?
The best point of sale software will automate inventory management. Every product will have a barcode and an RFID tag. Once you unload the truck received from the warehouse to your outlet, it gets added to your inventory. Once you bill the product, it reduces the count from your inventory level. All your barcodes and RFID tags get updated on a central server. It makes it accessible to understand the quantities in stock and where is the placement of it.
RFID ( Radio-frequency identification) is a revolutionary technology for retailers. Your resources do not have to calculate the stock physically. They need to rotate the scanner in the store to calculate the remaining stock. It helps to reduce manual errors and calculator the stock correctly. You can manage your inventory regularly. The best POS system will keep a constant eye on your inventory management to identify the weak links and predict the ways of thefts. Business leaders can strategize a plan to reduce losses from theft.
Your store might have a lot of broken or unsellable products, inventory helps to destroy such products and the reason for the destruction is mentioned. It helps to take the spoilt products off the shelf and reduces them from the inventory count.
Read More about Choose the Best POS Software With Diverse Features in 2021
Restrict and Grant Access Based on POS Duties:
When it comes to monetary gains, businesses cannot trust all their employees. It is crucial to grant and restrict access to the point of sale solutions based on job responsibilities. For instance, a cashier should only get access to bill the products and curb rest access. A manager should have access to applying discounts and editing the prices.
It should be a practice that every employee should log out from the software while leaving the sale point. If the team member assigned leaves it vacant other employees or customers can bill the product without even paying. POS software should allow users to log out and re-login after a break.
Cashiering duty does require complete human resources all the time. Managers can create a timetable for cashier duty and should give access to complete the sale to the respective cashier only.
Install POS Systems That Are Mobile:
The traditional POS system has a limitation that the cashier cannot leave the system. The thief is looking for blind spots to steal products.Cloud-based POS system enables businesses to install POS as per their needs. The deployment of software can happen on tablets and mobile phones.
The mobility of the cashier will enable the team to be more in the layouts to become an obstacle for stealers. They can engage with customers more and bill the products on the go.
Audit Employees and Their Transaction Slips:
As discussed before, retailers deal with a large influx of inwards and outwards of the product. Business leaders concentrate on external theft factors more. They tend to forget that the traitor can belong in your team as well.
Point of sale solutions helps to get a detailed transaction report of every POS and employees worked on it. It benefits managers to close the transactions at the end of the day. Random internal audits will help to understand and reduce the theft in the store.
To Close the Bill:
Shrinkage is an unavoidable challenge to all retailers. They are continuously in search of innovative ideas to overcome the challenge. The best point of sale software is an effective way to reduce loss and theft to a minimum.