This case study is about a machine that keeps records of our sales and receipts, also known as cash register. A cash register is a mechanical or electronic device for calculating and recording sales transactions, and an attached cash drawer for storing cash. The cash register also usually prints a receipt for the customer.
In most cases the drawer can be opened only after a sale, except when using a special key, which only senior employees and the owner have. This reduces the risk of employees stealing from the shop owner by not recording a sale and pocketing the money, when a customer does not need a receipt but has to be given change cash is more easily checked against recorded sales than inventory. In fact, cash registers were first invented for the purpose of eliminating employee theft or embezzlement, and their original name was the Incorruptible Cashier. It has also been suggested that odd pricing came about because by charging odd amounts like 49 or 99 cents, the cashier probably had to open the till for the penny change and thus announce the sale.
History of Cash Registers
The first cash register was invented by James Ritty following the American Civil War. He was the owner of a saloon in Dayton, Ohio, USA, and wanted to stop employees from pilfering his profits. While on a steamboat trip to Europe, Ritty was intrigued by a mechanical device on the ship's propeller that tracked of the number of revolutions for maintenance purposes. Upon his return to Dayton, Ritty and his brother John began working to duplicate this idea to record cash transactions at the saloon with a mechanical device. In 1879, the Ritty brothers patented their invention as "Ritty's Incorruptible Cashier," or, as we know it today, the cash register.
The first registers were entirely mechanical, without receipts. The employee was required to ring up every transaction on the register, and when the total key was pushed, the drawer opened and a bell would ring, alerting the manager to a sale taking place. Those original machines were nothing but simple adding machines.
National Cash Register expressly built for a merchant in Nové Město NAD Metují, Austro-Hungary, 1904. Shortly after his patent, Ritty became overwhelmed with the responsibilities of running two businesses, so he sold all of his interests in the cash register business to Jacob H. Eckert of Cincinnati, a china and glassware salesman, who formed the National Manufacturing Company. In 1884 Eckert sold the company to John H. Patterson, who renamed the company the National Cash Register Company and improved the cash register by adding a paper roll to record sales transactions, thereby creating the receipt. The original purpose of the receipt was enhanced fraud protection. The business owner could read the receipts to ensure that cashiers charged customers the correct amount for each transaction and did not pilfer the cash drawer.
In 1906, while working at the National Cash Register company, inventor Charles F. Kettering designed a cash register with an electric motor.
A leading designer, builder, manufacturer, seller and exporter of cash registers in the 1950s until the 1970s was London-based (and later Brighton-based), Gross Cash Registers Ltd, founded by brothers Sam and Henry Gross. Their cash registers were particularly popular around the time of decimalization in Britain in early 1971, Henry having invented the only known model of cash register which could switch currencies from £sd to £p so that retailers could easily change from one to the other on or after Decimal Day.
Modern Days of Cash Registers
Over the years, more enhancements were made to the cash registers until the early 1970s, when the first computer-driven cash registers were introduced.
The first computer-driven cash registers were basically a mainframe computer packaged as a store controller that could control certain registers. These point of sale (POS) systems were the first to commercially utilize client-server technology, peer-to-peer communications, Local Area Network (LAN) backups, and remote initialization.
In the late 1980s, retail software based on PC technology began to make its way into mainstream retail businesses.
Today, retail point of sale systems are light years ahead of where they began. Today's POS systems are faster, more secure, and more reliable than their predecessors, and allow retailers to operate every facet of their business with a single, integrated point of sale system. This is how the revolution began form cash registers to point of sale
Point of Sale (POS) & e-Commerce
Points of sale (pos) are nothing but computerized cash registers with a lot of new functions. Unlike cash register pos can do number of things at a time like inventory control, Invoicing and Receiving, Interfacing with Accounting software, Reports, Enforced accuracy, Integrated CC handling, General Ledger, Accounts Payable, Accounts Receivable, Preferred by tax consultants, portable sales, use credit card, online sale database etc.
Unknowingly cash registers and pos play an essential role in the concept or e-commerce. Cash register and pos are the basic ground of e-commerce. Electronic commerce, commonly known as (electronic marketing) e-commerce or e-commerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle; although it can encompass a wider range of technologies such as e-mail as well as POS. For example more than thousands of portable POS are used by DHL by their customer service representative. Whenever a parcel is received or delivered at that same moment their web site is updated by the portable POS system we can even monitor it on their web site online.
Cash Register vs. Point of Sale (POS) System
The one item in a retail store a business owner can't do without is the cash management system. Whether it's the traditional, electronic cash register or an elaborate computerized point of sale (POS) system, every store needs a machine to process sales. When the doors are open and the lights are on, the cash register becomes more than a safe place to store money. It has the ability to save money, quickly process a customer's transaction and accurately keep records. One reason for the high initial expense involved with a cash register or point of sale system is that a business can expect to get many years of service from the first machine they buy. The life expectancy of a cash register is between 10-15 years, with upgrades around 5-7 years.
Both of them have their own benefits cash register are used in small retail shop, stores or clothing outlet now a days where as POS are used for large hypermarket in hotels reservation and table management for restaurants, bars, and any business in the chain food service industry
Benefits of POS Systems and Cash Registers
Both a POS system and an electronic cash register are absolutely essential for a store's smooth check out. POS systems are ideal for larger stores and chains whereas the cash register shines in smaller shops and business, where advanced features are simply not required. You should keep in mind that the best POS solution depends on your business and its requirements. Glance over Key issues you should consider, when evaluating a POS purchase.
Key Cash Register Benefits
- Stores money efficiently and securely
- Improves efficiency and transaction processing
- Low initial investment
- Low learning curves as functions are straight forward and simple
- Gets you started quickly
- Satisfies tax regulations in fiscal countries
- Fewer components – all-in-one – printer, keyboard, display
- Producer assumes full responsibility for the entire product, including software
- Secure – no dangers of virus infection or common PC problems
- Small foot print and power consumption
- Basic functions and reporting – covers the basics
Key POS System Benefits
- Adds more value that will cover its initial cost
- Handles greater product volumes
- Makes complex business logic possible
- Provides more management possibilities of your daily operations such as sales tracking, refunds, time clocks, menus, pricing, revenue maximization, etc
- Provides advanced functionalities such as reservation and table management for restaurants, hotels, bars, and any business in the food service industry
- Realizes enhanced savings with greater efficiency
- Delivers better workflow for staff
- Improves customer service and increases customer through-put
- Easily manage large numbers of customers and groups
- Allows restaurant businesses to combine multiple services into a single invoice (hotel room, meals, events, services)
- Graphical management of store assets such as table, rooms, bar, etc
- Delivers superior reporting and analysis features
- Streamlines inventory management
- Portable Sales facility
- More detailed reports
- Better track inventory
- Improve accuracy
- Easily grows with business
- Back Office integration
Company background
The Meze Bar is a Mediterranean Restaurant specializing in Turkish cuisine. The restaurant was established at its original Southgate premises in 2000 by Selcuk Ibrahim. Two years later Selcuk set up a new restaurant in East Finchley North London. Since the new Meze Bar opened in April 2003 business has been steadily increasing, with the restaurant recently acquiring adjacent premises for expansion - effectively doubling in size. In 2005 the restaurant won the best neighborhood restaurant award sponsored by LBC and The Independent newspaper.
EPOS solution
When the Meze Bar expanded the floor space increased to include outdoor seating and three separate internal seating areas. This meant staff were spending an increasing amount of time running backwards and forwards between the kitchen, bar and table areas. This resulted in delays with order preparation and orders being delivered to the wrong tables. Realizing that improvements needed to be made, Selcuk approached a Casio dealer, who suggested installing the Casio QT-6000 touch screen POS system with four ORDERMAN DON Wireless Waitressing terminals.
Business benefits
The installation involved one Casio QT-6000 touch screen POS terminal in the bar area and four ORDERMAN DON Wireless Waitressing terminals for the waiting staff. The Wireless Waitressing terminals link to a kitchen printer, allowing staff to take orders from the customers table and remotely submit them to the kitchen for preparation. Orders can be prepared more quickly and staffs are always available near the tables to take customer orders. The Casio QT-6000 and ORDERMAN DON system is easy to operate. It was installed and staff were trained on Friday, and that evening the new system went live – during the Meze Bar’s busiest trading period! The transition went very smoothly, with staff noticing the difference immediately. Selcuk comments “I now have a system that enables us to serve more customers in busy times, without staff having to run between tables, terminal, bar and the kitchen. I also have a very happy environment because the system increased the satisfaction of everyone from my chef and staff to my customers.” The new system has allowed Selcuk to re-organise his staff, with key waiting staff acting as sales people, always present on the restaurant floor taking orders from customers. Other staff deliver the food and drinks to the tables. Customers have responded well to this new system, with many being amazed when their drinks are delivered when they are still giving their food order! Selcuk hopes that this new, more efficient and sales focused staffing arrangement will allow him to increase turnover by 10 - 20%. This is quite a modest goal, as each table ordering one or two additional items, such as coffees, will achieve this.
Consider Before Buying a Cash Register or POS
For a new business, the choice of cash register or POS system may simply depend on the budget of the retailer. Don't pass the responsibility of selecting the cash register to employees or a consultant. Do your homework. Before selecting a cash register or POS system, understand your business needs, the cash management options and POS hardware available and make your selection based on an educated decision.
Benefits of a POS System
- More detailed reports
- Better track inventory
- Improve accuracy
- Easily grows with business
Benefits of a Cash Register
- Low cost for startups
- Most models easy to use
- Fewer components
- Basic functions and reporting
Before you buy either a cash register or a POS system, learn what kind of warranty or support comes with the machine. Plan how you or your staff will be trained to use the equipment. Once you make your purchase, stock up on any necessary supplies such as ink ribbons or receipt paper.
Where to Buy
Complete retail point of sale systems can run anywhere in the neighborhood of 135,000tk to 1,380,000tk. The more POS hardware added to the system, the higher the cost. Retailers can find a simple cash register for under 16,000tk, but expect to pay between 20,000tk to 56,000tk for more advanced registers with scanners, display pole and many functions. It is fine to choose a low-end model to start with as long as you upgrade later, as the business grows.
Look in your local paper for businesses closing their doors. A second hand cash register or POS system will be much less expensive than a new one. If the business has recently closed, it may be a fairly newer model. Another option for cash-strapped start-up businesses is to lease a system from a business equipment supplier.
Before you buy or lease a cash register or POS system, get the advice of an experienced professional before making your final decision. A bad choice could result in loss of sales or negative customer service. However, in the end only you know what's right for your retail business
My Review
Cash registers & POS is about managing the system and the way we run our business it is not about the fancy portable POS and good looking cash registers. A cash register or a POS can entirely change the way we run your business. It’s all about doing smart business and satisfying our clients. It could bring a revolutionary change in the country if we start the practice of cash registers and e-commerce in our cities. The concepts behind these changes are micro management. Life will be much easier than keeping one eye on the counter whole day long. As a reviewer I would like to suggest our government to import few thousands of reconditioned cash registers and POS that would help our economy grow widely, the taxation could be monitored very closely if all the Cash registers & POS are connected to internet through which the government can keep record of each organization and there taxation. Already e-commerce has been introduced in our country last weekend 7/11/2009. Whereas Cash registers & POS are also plays an important role in e-commerce, so it should also be introduce as quickly as possible. As a result of these changes many well known companies have achieved what they are now like Toyota, Pizza Hut, KFC, DHL, A&W, Wall Mart, Carrefour, Giordano, Gucci, Dunhill, NEXT etc these organization have more than hundreds of showroom, outlets and offices which are managed by Cash registers & POS and e-commerce.
1 comments:
Do you have any running program in vb6 of POS???
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