Difference Between POS and Inventory Management System
Updated: Dec 8, 2021
Many retailers understand the terminologies that appear with the outstanding business. Business owners should know to remain credible with their respective clients and other business owners.
But, some retailers blend the difference between the POS (Point of Sales) software and the IMS (Inventory management software) software.
In general, sales are related to inventory. The two software, POS and Inventory Management Software tends to operate on different levels. However, even with the small knowledge of POS and Inventory management, can help the retailers to some extent to grow their business with extra efficiency.
What is the POS system?
The POS (known as Point of Sales) is the place where your business clients/customers proceed with payments for the purchased goods or services from your stores. To make it simple, when each time your client/customer affords a purchase, they tend to complete a POS (Point of Sales) transaction.
What is an inventory management system?
An inventory system or inventory management system is the system by which you can keep track of your products throughout your whole supply chain, from making the purchase to productivity to the sale end.
With inventory management, you can examine the quantity of stock to order at the specified and required time.
What is the difference between the POS system and inventory management system?
As the business owner, you have the responsibility to know the difference between the POS and inventory management system to run your business. It might be good to run the business as a retailer without knowing the major difference between the POS system and the Inventory Management Software.
Here comes the difference between the POS system and the Inventory Management Software.
Generally, the POS (Point of Sales) software is intended to design for recording the sale you made on your business, typically with some ordinary classification.
Usually, the POS (Point of Sales) software contains a complicated input device like any kind of receipt printer or/and barcode scanner.
Some of the POS (Point of Sales) software will not monitor the inventory management levels. The only task of POS is to monitor the sold products, a kind like a transaction recorder. But nowadays, there are lots of POS software in the market which also includes the inventory management system.
Inventory management system software
When we get into the inventory management software, it is designed to keep track and maintain all the elements that tend to affect the inventory system at the appropriate product level. It means that the retailers can track the particular products that are sold and unsold. So, retailers can easily catch the trending inventory and track them before they go out of stock and make those inventory available all the time.
With the help of the inventory management software, you can make check all your items whether they are in stock or out of stock or moving to out of stock. An ideal and successful inventory management software will make to grow your business to great extent with very high ROI (Return of Investment)
POS for inventory management
As we discussed above, there is POS software with the inventory management system. Choosing the right POS system for inventory management is one of a great deal. Especially for the retailers (also for the businesses who sell their products). For those people, the POS system with the inventory management software will save both their time and money.
Effective ways to maintain inventory management with the POS system
Here are some of the effective ways to maintain inventory management with the POS system.
Lower the ordering cost
The amount of ordering stock is considered one among prices related to preserving the stock of the product or merchandise bought through a small commercial enterprise. A small commercial enterprise can not maximize its income without persevering to maintain ordering prices low. They encompass a part of wages and blessings for the man or woman ordering the stock, administrative prices, and prices of taking delivery. A POS device enables maintain ordering prices low through telling you whilst precisely to order.
Lower the carrying cost
Carrying charges are the charges of stock storing. The cost of storage may vary based on the inventory. Here it is considered that the products need a special condition to store them and their corresponding product size. A large quantity of stocks in your stores will not only increases your storage costs but also lead to the problem of obsolescence. Both will result in loss of your business profit.
Advantages of using POS system software for inventory management
Here follows the advantages of using POS system software for inventory management.
Easy to generate all your reports automatically
You can generate both your inventory and sales report for any period with zero difficulties.
It permits you for remote management
Consider a situation as you hold two businesses in a different location. In this case, you need are not supposed to worry about inventory theft! Because the POS system helps you to track your inventory.
The business profit tends to increase
By decreasing both your carrying amount and the inventory ordering on your business, you can improve the profit of your business.
Inventory tracking is automated
As all we know, both the large enterprise and the small businesses struggle more to maintain their inventory either high or low. But it can be controlled by using the POS system software for inventory management.