Retail Challenges: Could Replacing Your POS System Help?
If you run a retail business, there is no denying the fact that you are accustomed to a variety of challenges. However, with a high-quality POS system, you can mitigate these challenges and turn them into opportunities for improvement. Let’s take a look at what challenges retailers face, and how you could get better manage these challenges.
Challenge 1: Inventory tracking
Inventory tracking is an imperative part of retail management. Without it, retail outlets face a downhill trajectory. Retailers have to strike a balance between inventories on hand and projected demand. If that balance is compromised, then the items are either out of stock or over-ordered which ultimately results in unhappy customers. The major challenge with inventory is that most retailers have to manage large quantities of different items, with many of them featuring multiple variations. If implemented and used properly, an inventory management system enables retailers to better achieve both a healthy quantity of a specific product as well as the right mix of total overall products. This is quite a tricky business and you can’t leave room for human error in this industry or risk losing business. If you’re currently using spreadsheets to manually input and track changes in inventory, or if your current system requires you to manually input product details (i.e. no barcode scanning for quick uploading), then you most certainly need a better inventory management system
Challenge 2: Gathering, analysing and using key data
It seems like data collection and analysis is ubiquitous in our modern society. As a result, you need to keep up with these standards to remain competitive. If you’re a retail business owner not leveraging sales, product and customer data to improve operations, then you’re not just doing it wrong, you’re failing your customers and severely limiting your business. Ineffective reporting and analysis, or the lack thereof, is the second most common challenge that our retail business owners are facing. If your current POS system doesn’t provide you with the depth of data you need to make more informed business decisions, than you need to replace your current system.
Challenge 3: Scaling operations to multiple locations
Many retail operators might be comfortable with their “good enough for right now” POS system and supplemental software. But what happens when “right now” gives way to the future? Will these operators be prepared to move into a second location or even open an online store? For these retailers, what was once one sales channel, one store inventory or one customer list, is now two. And who’s to say they’ll be anything like the other? Doubling down on your retail footprint is a courageous act. Multi-location management doesn’t have to be some scary beast though. There are ways to deal with this to make the process seamless.
If your current set up is now allowing you to deal with these kinds of challenges, it might be time for a change. Modern POS systems do a great job of providing a unified back-end which can be seamlessly added to or drawn from multiple locations, greatly improving data management and appropriately managing inventory. If you don’t feel your current system offers the necessary type of support to keep up, then it might be time to reconsider your POS system.