How POS Data Improves Supply Chain!

POS Data

Supply chain management involves the conduct of the movement of goods and services. It involves all the procedures that metamorphose raw materials into finished products. It entails the efficiency of a business’s marketing activities and use of POS data to maximize the value of customers. 

POS data improve supply chain management by providing a free flow of communication at all levels during the production of products – from manufacturers to end-users.

In this article, we have accentuated the ways POS data can improve supply chain management. 

How is POS Data Important?

If your business has yet to use POS data, you might be wondering why it is so important. 

It is not news that nearly all retail business uses numerous channels for marketing their goods and services. For this reason, it is crucial to create pleasant experiences for your customers. And to bring this to light, you will require data from all offline and online channels. 

A consolidated POS terminal can function as either a countertop or mobile terminal. Like many advanced POS systems these days, the terminal you choose for your business should be sophisticated with facets programmed to gather data. Gathering more data will increase more sales.  

Modern POS systems have made it easy to operate without the need for ultra-modern technical knowledge. Principally, the data you get from every purchase will benefit you in crucial decision-making. 

7 Ways POS Data Enhances Supply Chain Management

A supply chain is a network of people, activities, organizations, technologies, and resources involved in producing and selling goods and services. It begins with the arrival of raw materials to the delivery of completed goods and services to customers.  

According to POSQuote, supply chain management oversees each of the stages of a supply chain, from start to finish. Access to POS data increases the rate at which information flows in the supply chain. This will enable you to adapt levels of production and stock to real demand. 

In this section, we have highlighted ways in which POS data boosts supply chain management. 

1. It Can Help You Make Good Staffing Decisions

You can learn about your staff performance with the help of your POS data. With this data, you can gain insight into: 

* Who merits a promotion or recognition.

* Which of your employee is doing well.

* Which of your staff requires some extra couching or stimulation. 

This staff-peculiar data can equally notify staffing verdicts. If you are anticipating additional traffic for a future campaign or just a busy season, you will be able to schedule your top performers. And you can only have access to this with your POS data. 

Even better, with POS data, you can go beyond just sales. You can observe the time-period when creating minimum or maximum sales and consider your employees to sales ratio. 

2. It Helps with Inventory Monitoring

Today, a lot of businesses still monitor and stock their inventory manually. Sadly, errors will be prevalent if this process is not automated. An advanced system should permit you to automate transactions, count the number of products, transfer stock, and manage returns.

When you optimize your stock, you will avoid shrinkage in sales and capitalize on all sales opportunities. 

3. By Helping You Make Crucial Business Decisions

POS data can help you manage staff performance. Small businesses are always looking out for slackness within the work environment that needs fixing, and POS data can conveniently fix this. Here, you can discover who exceeds and meets your expectations, which is essential when promoting employees. 

POS data will also enable you to recognize highs and lows in sales. This information is not only essential to staffing; it will also give you better insight into what product to remove from the counters and what product to promote. 

You will also be able to make data-driven decisions. This is especially true when it comes to advertising and marketing campaigns. 

4. Gives You Better Perception about Products and Customers

With POS data, you will be able to have access to the peculiar perceptions of products. You will also be able to have an awareness of consumer behavior.

For example, you will see a detailed archive of orders and varying vogue in sales for each available product you have. You will have knowledge of what items your customers buy more often. 

5. Helps You to Determine ROI

When it comes to running a business, everything boils down to money. At the end of the day, how much money you earn remains a crucial question. Naturally, you get profit when things go as planned. 

Many businesses are unable to make profits, and the primary reason for this is because the business owners are investing in the wrong places. 

To make the right investments, you need first to get insights on what offer and product show the highest ROI. 

How does POS data come in? POS data will give you details on the exact numbers of each offer and product. It will tell you the amount sold in duration – in a week, month, or even year. It will also give you insights on the amount of profit on each of the products and answer your question about regularly used discounts. 

All of this information can enable you to spot the product that sells the least and most. In the long run, this will improve revenue for your business.  

6. Convenience

As a business owner, POS data will make most of your activities ultra-easy for you. POS data is easily understandable and comprehensive, so your company can make progress with ease. Without such a system, it would not be possible to gain access to that much information and speak less of understanding it.

With few touches and clicks here and there, you have months of sales data, all put together in numbers, for your ease and clarity. 

In a business environment where there is ruthless competition, this advantage can be likened to a blessing. For this reason, we recommend any smart business use POS data to adapt to changes and grow revenue. 

7. By Improving Supply Chain

POS data can remarkably increase supply chain management and enable you to monitor inventory. It is damaging to have too much or too little for a sales business. When you continuously track your business’s POS, you will be better positioned to forecast how much product you will need. You will also have insights on the duration of time it will take you to sell them (source). 

When you know when you are to restock or reorder products, your business operation will run more steadily. In these cases, there will be no room for assumptions. You will also have insight on what time of the year you will make more sales, so you know when to stock your shelves more. 

Aside from the benefits you get from this, your customers will also be satisfied, because they will always have access to their desired products.  


The importance of having a POS system that provides data cannot be overemphasized. From the delivery of raw materials to the sales kid finished products, there should be healthy communication with all levels. And POS data can make this possible.

Utilizing your POS data will improve supply chain management and, in the long run, increase revenue. This is because, among other benefits, consumers will effectively communicate their concerns to the retailers and manufacturers. 

We believe that our article has given you helpful information on POS data and its relation to supply chain management.

POS data article and permission to publish here provided by Aniko A. Originally written for Supply Chain Game Changer and published on January 8, 2021.