A digital point of sale system can bring balance to your business by automating the process of achieving inventory par. The tech has even evolved what the term “par” means from an aspirational perfect balance of supply and demand to a practical function of your POS solution–Periodic Automatic Replacement.
In the 2020s, a par inventory system is a way of digitizing every item that enters your business. By turning the raw ingredients of a restaurant, the essential shampoos of a salon, or the most popular products of a retail outlet into easily digestible data, owners and managers can run their businesses from a single, mobile platform that’s accessible anytime and anywhere.
Furthermore, a par inventory system can handle the repetitive but crucial tasks of counting stock, making purchase orders, and maintaining the backroom balance of supply and demand.
A POS-Based Par Inventory System
According to Forbes, a 2018 survey found that more than 60% of merchants wanted their point of sale (POS) system to be cloud-based. The desire for an internet-connected business management hub is simple–it brings together every facet of a business within a single platform.
Most companies are moving towards digital POS solutions that replace bulky registers and disjointed accounting systems with mobile iPad terminals and on-demand access to the best business software currently available.
Upgrading to such a system means businesses can digitize their stock and reordering process, better connect it to their broader business functions, and gain more control over their enterprise.
A digital par inventory system built into a mobile POS solution will:
- Improve inventory balance
- Automate stock ordering
- Connect online and in-store sales
- Increase customer satisfaction
- Make remote management possible
- Create sales data insights
Replacing the manual accounting aspects of a business for the accuracy and simplicity of a POS solution is what makes the digital era so appealing. Upgrading to an automated version of a par system makes it easier to achieve the balance needed to run a profitable business.
From Par to PAR
Par is the gold standard of business management. It’s most notably used in the food industry where the short term needs to carry enough perishable goods to satisfy demand must be balanced against the potential wastage due to poor performance. It is a way of maximizing profit.
Converting this process to a digital inventory process, the Periodic Automatic Replacement version, combines this notion of balance with the precision of computer accounting. When fed the correct data, a digital POS system can keep a real-time count of stock levels and offer accurate insights on how what you have relates to what you need.
Suppose the inventory system is connected to the broader business sales functions. In that case, the par inventory system can be evolved to automate recurring purchase orders against current trends and keep the business in balance.
This balance is crucial to any company’s bottom line. There are 6 primary reasons to use the par inventory system.
1. Improve Inventory Balance
Every item of inventory that is ordered through a digital POS system gets assigned a value. That value can then be tracked through the sales process to determine how it contributes to profit. For example, bags of beans can be monitored as units of coffee, butter can be measured against recipe use, and retail items can be bundled together to make them more appealing.
A digital par system then monitors all of these sales units and provides direct, real-time alerts whenever supply begins to outstrip demand.
2. Automate Core Stock Ordering
The second step in improving a par inventory system to meet modern standards is automating the process. The same alerts that prompted managerial attention above can be used to modify and initiate routine purchase orders allowing staff to focus their attention on more pressing matters.
Automation is a staple of the digital era and the resulting resource savings are becoming increasingly important to success in the 2020s.
3. Connect Online and In-Store Sales
Online sales have soared during the ongoing COVID-19 pandemic and it’s possible the change in purchasing habits could become permanent. The leading POS solution providers already offer web connections as standard in their business models and modern inventory programs need to be able to assimilate stock against both in-store and online sales.
Bringing together both worlds to keep a practical count is vital to capitalizing on a potentially lucrative new revenue stream.
4. Improve Customer Satisfaction
The objective of maintaining the balance between supply and demand is to make and keep customers happy. Growth depends on repeat business, which depends on customers getting what they want when they want it. A digital par inventory system means never having to tell a diner you’re out of their favorite dish or a first-time customer that what they want won’t be available in their color preference for another month.
5. Make Remote Management Possible
The mobile part of mobile POS solutions is among its most essential features. Cloud-based business hubs can grant access to live sales figures and the business software to manage everything from inventory to staff rosters from the convenience of a mobile device.
Owner/managers can work the way they want when and where it best suits their business.
6. Create Sales Data Insights
Combining inventory and business data across a POS system makes it possible to run real-time sales reports that reveal how a business makes money. Incoming stock can be tracked on its journey through the business until it ends up as profit, loss, or a write-off.
This information can be used to make important practical decisions on purchasing, staff assignments, marketing, and long-term planning. Analytics of this sort have become a key ingredient for success and are a key component for making a par inventory system work.
Digital Par Inventory Systems Work
The digital advantages of 2020s POS solutions bring greater accuracy and functionality to traditional business methods such as par inventory. Turning over the number-crunching side of an enterprise to an integrated business platform introduces balance based on hard facts.
Guesswork and short-term trends can be replaced with reliable, repeatable business processes that ultimately make it easier than ever to turn the information every business generates through sales into a practical guide for growth.
In a period of change, talech has a number of POS solutions that can help your business adjust operations smoothly. From reaching new audiences to engaging with your existing customers more often, we give you the tools to adapt quickly and with confidence.
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