Understanding the purpose of the software is wise to use its implementation and to decide on the right choice for the firm. Before moving on to the differences between the software, we must know what essentially it does and also what is the purpose of its discovery.
What is POS software?
It is a software that manages the huge transactions between the supplier and the customer at the point of sale. This software is termed as a Point of Sale or Point of Purchase but self-explained when it also called as “Retail Management System”. It is often seen in supermarkets, hotel business, retail industries, etc.
To dig more deep inside, on a scan of a barcode it can link to the selling price of the product and its information. This is done when it has the data pertaining to inventory. It can also provide the information of price on scan of a product code as well.
So, it is programmed to work on the functions of inventory management, scanning to calculate the payment to be done for the purchase by the consumers, generate bills, carry the transaction and record the transaction history. This system provides payment options through various facilities like online payment, barcode scanning payment, cash payment, etc. It not only generates the bill on paper can also send e- bill which Is done digitally. It is smartly programmed to also calculate the discounts, profit analyzing which are complex operations. It stores the history of the information of the account holder for marketing purposes in the future.
Worried about standing in the queue? Any business using this software can fasten the process to give contentment to the customers. Do you want to return the item? Well, no problem the software can remove the sale information and put back the product information in the inventory easily. This is limited to sales, finance and CRM along with management of inventory.
Now coming to ERP, as we know it is an integrated software for managing different operations and all in one database.
How does POS differ from ERP?
- POS is limited to sales, inventory, finance and CRM, while the ERP can operate on numerous functions.
- POS has high efficiency but concentrated to one form of work, while ERP has high efficiency as well can integrate different operations.
- POS is one software where other software can’t be integrated, while ERP has a feature of using POS as an inbuilt software.
- For big business with various operations ERP can be implemented, while small business concentrate on one work that performs functions programmed to it, which can be used for small businesses that is dedicated for retailing.
It is often suggested to integrate both software to have high efficiency and integrated performance rather than using two separate software. Can reduce the losses and intensify business growth.