Advantages and Disadvantages of Point-of-Sale (POS) System

Running Head: IT FOR BUSINESS 0
IT for Business
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IT for Business 1
Table of Contents
Introduction.................................................................................................................................................2
Question 1:..................................................................................................................................................2
Advantages of Point-of-Sale (POS) System..................................................................................................2
Sales data:...............................................................................................................................................3
Inventory Management:..........................................................................................................................3
Customer Relationship and Experience:..................................................................................................3
Employee Management:.........................................................................................................................3
Loyalty Programs:....................................................................................................................................4
Gift Cards:................................................................................................................................................4
Reporting:................................................................................................................................................4
Disadvantages of POS System:....................................................................................................................4
Question 2...................................................................................................................................................5
Competitive advantages of POS system......................................................................................................5
Payment Processing Service:...................................................................................................................5
Tablet –based systems:...........................................................................................................................5
Question 3...................................................................................................................................................5
Centralized Database:..............................................................................................................................5
Question 4...................................................................................................................................................6
Question 5...................................................................................................................................................6
Recommendations.......................................................................................................................................6
Question 6...................................................................................................................................................7
Risks of POS system.....................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
This report will provide information about the POS system and their working in different areas,
such as retails, restaurant, and small businesses.
This report will discuss about the recommendations and risks for Four Seasons Greenhouse and
Nursery Company. It will explain about the advantages and disadvantages of POs system for
Four Seasons Greenhouse and Nursery in later sections.
Question 1:
Advantages of Point-of-Sale (POS) System
Point of sale and point of purchase systems are beneficial for the retails businesses. They are
providing many benefits to the company in terms of cost and time. POS systems are hub where
everything merges. It is a system, that manages many things in a company and it is the central
component of company. It is place at the exit of customers. Customer executive is taking
payment for goods and services, which are taking by the customers from the company. POS
systems are combination of software and hardware, which is allows merchants to take transitions
as well as different business operations ( Guinn , 2019).
POS systems are used to collect money for purchases of customers from their stores. It records
the financial transactions at different level, such as on system or clouds. These POS system are
helping in the retails businesses. These systems are providing complete data about the products
and services. It is a way to reduce cost and time of company from reducing unnecessary
processes. It is not having a huge cost in implementation (Hudson, 2018).

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Source: ( Guinn , 2019)
Above figure is showing main areas, which are using POS systems for their sales. Here are some
key advantages of POS system, which are as:
Sales data:
POS systems are capable to generate robust reporting for sales. It provides reporting at real-time,
hourly, and daily basis. It provides the data that will provide help for decision-making.
Inventory Management:
Retails are based on the inventory management, which provides cash. Inventory management is a
tough task and it is easily managed by the POS system.
Customer Relationship and Experience:
History of customer data and purchase help to changes in products and services. It is also
providing customer retention. That data will also provide help in marketing and advertising of
products and services, which can increases sales of company. Data mining techniques can be
used for decision-making (Vercellis, 2011).
Employee Management:
Based on the POS system requirements, company can manage their employees according to
needs. Company can decide about shifts and number of employees though sales data reports. It