Most business establishments take a general inventory of stock at the most twice a year, and after the inventory has been completed, many businesses notice a marked difference between the supplies in store and the actual number that should be present after deducting all the items sold as reflected in sales records. This difference is called ‘shrinkage’ and this is one of the largest causes of loss in any industry.

Shrinkage, which accounts for about 4% loss in sales, is attributed to internal and external theft, as well as incorrect recording procedures (or messed up paperwork). These can be avoided or minimized by using POS systems.

Most Point of Sale Systems have integrated sales and inventory functions. These systems allow real time updates on recorded figures. The minute an item is purchased and checked out at the counter, this is immediately deducted from the quantity of the recorded stock. You can be assured that, at the very least, sales records and the actual inventory count would tally. You can also easily retrieve the data in case you want to have daily, weekly or monthly reports, or if you just want to conduct impromptu spot checks.

Through POS systems, you can also monitor who comes in and goes out of your stockroom. Each employee should be assigned a name and password and these should be used whenever they bring items out of the warehouse or stand in front of the cash register. This way, it would easier to determine who should be accountable for losses or discrepancies.

Receiving and shipping of goods is still part of the inventorying and these processes can be streamlined even further by your POS system. Purchase order forms as well as receiving forms can be generated by your POS and the information will be automatically stored in your database. Data on short-shipped or back-ordered items will also be stored and these can be retrieved easily. Pen-type wireless scanners, part and parcel of a complete POS package, make records information (product, supplier cost) faster and more accurately.

POS systems have other functions which help minimize shrinkage and protect your inventory. There are programs where you can adjust security levels so employees have access only to information that is vital to their respective jobs. You can also program your POS system to allow your staff to give predetermined sales discounts.

When the full power of the POS system is harnessed, keeping track of your inventory would be a breeze thus allowing you to focus your attention on other aspects of your business.