Warehouse managers looking to improve profitability and efficiency across an omnichannel retail environment need inventory management software that can keep up. Harmonizing sales data from brick and mortar retail outlets along with online-available stock boosts sales while reducing delays and oversupply issues.
- What is point of sale (POS) inventory management?
- How POS inventory management syncs online and in-store stock
- Automating replenishment with POS data
- Centralizing reporting across sales channels
- Choosing the right pos inventory management solution
- Explore your options for inventory management
- FAQs on point of sale inventory management
What is point of sale (POS) inventory management?
Point of sale (POS) technology started as a way of uniting seamless buying experiences for the customer with the retailer’s need to maintain accurate stock levels. But today’s POS systems go far beyond updating records and allowing managers to quickly change prices for specific products. They are powerful upgrades to add to any retail environment: digital, physical, or both.
POS technology that’s built with omnichannel retail in mind manages stock across multiple locations, provides sales data from all platforms where products are sold, and reduces the manual work necessary for keeping everything in stock. A complete point of sale and inventory management system works best when tailored to a specific retail niche, whether the company is trying to track dishes sold through a restaurant chain or managing a retail outlet that sells online, in-store, and through an app.
How POS inventory management syncs online and in-store stock
Due to the volume and speed of sales today, retail environments can’t count on managing stock manually. Real-time inventory visibility across multiple locations, including both public stores and private warehouses, requires powerful point of sale and inventory management software.
Warehouse managers need to know when and where to shift stock across their retail networks to keep up with changing customer demands. The real-time insights and demand forecasting that omnichannel POS systems provide allow for strategic inventory management to prevent stockouts or overstock. For example, managers may move excess online stock to a physical store with higher demand.
Today’s omnichannel retail provides new challenges, such as the popular Buy Online, Pick Up In-Store (BOPIS) options. Inventory management systems need to track these products as they transition from online stock to the pickup location, updating as needed if they return to storage due to a return or canceled order. Issues with the system can quickly leave products piling up or missing from the stock record, complicating the smooth flow of the pickup process.
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Automating replenishment with POS data
Inventory control isn’t just a matter of providing customers with accurate information on what they’ll find in stores or online. It’s also an essential step in automating stock replenishment. Inventory management systems connect sales data to a series of triggers that automate smart restocking, reducing errors from manual inventory management such as overordering and inventory lag. These systems need to account for ecommerce returns management as well, preventing sudden influxes of returns from affecting warehouse space or sales rates.
Retailers can’t wait for a slow delivery cycle to catch up with customer demand; they need a POS system with updated inventory data and accurate sales forecasting to keep their top-selling products in stock. POS systems track current inventory as well as predict future sales trends for each channel and location, ensuring inventory gets to the right places at the right times. Outdated data and manual inventory management are a recipe for decreased customer loyalty; if a product is out of stock, buyers may look elsewhere for their needs.
Due to the vital nature of real-time inventory insights, inventory management software is the kind of investment that can reduce labor costs for 3PLs, prevent stocking mistakes, and simplify the replenishment process all at once.
Centralizing reporting across sales channels
Sales data goes beyond raw numbers and requests for new stock. Inventory tracking provides essential information needed for overall operations and financial planning. Fluctuations in demand could change the entire focus of a retail outlet, guiding a company to specific types of fulfillment options, product lines, or marketing opportunities. If the omnichannel sales data indicates the need for new stores or an expansion of online shipping capacity, that could lead to everything from property acquisition to a search for new investors.
The best inventory management system integrates seamlessly with all of a company’s preferred ecommerce platforms, in-store POS equipment, and warehouse management systems (WMS). These systems provide consolidated inventory statistics needed for accurate management and allow warehouse managers to explore performance metrics across the entire business, not just individual locations or channels. Having a single source of truth for an entire inventory system reduces errors and overlooked products, maximizing successful sales and minimizing costs and losses.
Choosing the right pos inventory management solution
Omnichannel businesses can automate and centralize the inventory management process by looking for software offering must-have features like:
- Fulfillment tracking for shipping, same-day delivery, BOPIS, and in-store shopping experiences
- Real-time syncing across all channels, especially when you provide cross-channel ordering opportunities
- Detailed purchase orders to track every step in the fulfillment process, allowing for future auditing to determine the efficiency of the system
- Reporting tools that provide data on sales trends, stocking issues, and opportunities for growth
- Scalable inventory tracking that grows with demand as warehouses and retail outlets increase
- Integration options to connect inventory management with your current fulfillment partners and warehouse management systems.
Logiwa supports seamless POS inventory workflows with AI-driven product tracking, workforce management tools, and more. We are an integrated WMS and direct-to-consumer (DTC) fulfillment system that simplifies running a warehouse in the digital age and scales high-volume fulfillment operations with ease.
We are relied on by fulfillment networks and growing online retailers alike. Our clients love how our software integrates with almost every platform they use to bring their products to their customers. Start centralizing your approach to omnichannel retail and bring all essential inventory management tasks within a single source by transitioning from a basic WMS solution to a complete fulfillment management system.
Explore your options for inventory management
Connect your in-stock and online sales data to provide a better customer experience while also reducing overstocking and stockout issues. Provide customers with the products they want, no matter how they want them supplied, with the help of Logiwa’s AI-powered optimization tools. Explore ecommerce inventory management software that handles vertical and horizontal scaling with ease. Then schedule a demo to see how Logiwa IO can help you fulfill brilliantly.
FAQs on point of sale inventory management
What is POS inventory management and how does it work?
- How it works: It unites the customer’s buying experience with the retailer’s backend stock needs.
- Key Function: It replaces manual record-keeping by instantly syncing sales data from physical stores, online shops, and mobile apps.
- Result: This automation prevents overselling and provides the data needed to drive purchasing decisions.
What is the difference between a POS system and an inventory management system?
- The POS Role: It acts as the frontline data collector, recording what is sold and at what price.
- The Inventory System Role: It uses that data to predict future trends, manage 3PLs, and automate restocking across multiple warehouses.
- The Ideal Setup: A complete solution integrates both, transitioning from basic tracking to a full fulfillment management system that acts as a single source of truth for the entire business.
How does POS inventory management support Buy Online, Pick Up In-Store (BOPIS)?
- Tracking Transitions: The system tracks products as they transition from “online stock” to “pickup location,” preventing items from being sold to walk-in customers while an online order is pending.
- Handling Returns: If a pickup is canceled or returned, the system immediately updates the record to place the item back into storage or floor circulation.
- Preventing Errors: Without this synchronization, products may physically exist in the store but be missing from digital records, causing delays and complicating the pickup process.
Can a POS system help with overstocking and stockouts?
- Automated Triggers: The system connects sales data to triggers that automate smart restocking, reducing the human error that leads to overordering.
- Strategic Movement: Managers can identify excess stock in one channel (e.g., online) and shift it to a physical store where demand is higher.
- Forecasting: By analyzing real-time sales velocity, the software predicts future trends to ensure the right inventory gets to the right place at the right time.
What features should I look for in POS inventory management software?
- Real-Time Syncing: Immediate updates across all channels (in-store, online, mobile) to prevent data lag.
- Fulfillment Tracking: Tools to manage shipping, same-day delivery, and BOPIS workflows.
- Scalability: The ability to grow with demand as you add new warehouses or retail outlets.
- Integration: Seamless connection with your existing Warehouse Management Systems (WMS) and fulfillment partners.
