Wal-Mat Management: the Cashier and Customer to the Entire Network of Information - Essay Example

?Wal-Mart Retail POS System Wal-Mat retail POS is meant to track sales and inventory as they occur. It is designed to solve a multitude of problems in the business like recording financial transactions and maintaining security by tracking and discouraging theft of products on the stall. In addition, it will act as an automated link between the cashier and customer to the entire network of information, handling transactions between the customer and store and maintaining updates on pricing and promotions. The retail POS system major objective is to ensure better management of cash transactions and for control of inventory management. Benefits of the POS System The POS system being online will ensure that all across the Wal-Mat store there will be real and up dated POS solutions. In addition, since the POS system is custom made it will be custom made and thus compatible with most of the programs and hardware, which are to be installed. Furthermore, it will ensure that there is less inventory shrinkage. This is because through POS system it will be easier to keep track of obsolete and damaged inventories. Because of the effectiveness with which customers are served, it will ensure and lead to more customer service efficiency, customer satisfaction and customer retention and loyalty. It will facilitate timely and accurate reports as well as fast and effective analysis of sales date which is paramount to management information for decision-making process. In addition, the online POS software package will offer the advantage of management through remote access i.e. while in different store and while on leave. Moreover, having installed POS system Wal-Mat can easily expand in case of increased customers. This is because it only needs to mount new computers and other relevant hardware to create a new service station. The other minor benefits that Wal-Mat will get by setting up the POS will be prevention of theft, accuracy, and effective inventory management. Demerits of the POS System There is high overdependence on the POS system, which is detrimental to the company. This is because in case of the POS system collapse or crush the business will come to a standstill. In addition, there are potential problems with internet connection. These include slow activity when internet connection is low or there is interruption/ no connection. Furthermore, with the retail POS system Wal-Mat will experience potential security risks with regard to software corruption by viruses, credit cards, and debit cards. Moreover, considering that the POS system is custom made, with the software applications used there will be need for regular updates to the system that may be done at an extra cost. POS Contingency Measures Since running of the POS system will be dependent on the electricity for smooth running, implies that in case of power outages the business will stop. These business standstill means loss of revenue, dissatisfaction of customers and under utilization of resources. Wal-Mat to combat electricity failures has bought and installed a diesel driven generator with the capacity to run the POS system for more than 12 hours. In addition, UPS s- uninterruptible power supply - have been fitted on every computer. This is to ensure smooth transition and business continuation while switching to the generator. Wal-mat has also set up another back-up server computer in another independent location that store up real-time transactions happening in the main business stalls. This is meant to militate against any outages of the POS system in case of fire breakout in the main business area. In addition, after every 1 hr of the normal business hours, it is a requirement that there be a print out of sales receipts for every one hour. This is to ensure that in case of failure of the two back-up servers there can be hardcopy back up to mitigate it. Weakness and Recommendations to POS System Due to the continued high customer satisfaction, there has been an influx of new clients to our business, which has resulted to slower than normal –service time – handling of customer in the retail mall. This has resulted to a dire need for more client terminals, which are not only expensive to install but also there is no adequate space to mount them. Wal-Mart needs to purchase portable point of sale terminals to ease the congestion and again ensure effective customer service. About three additional cashiers will be hired and trained to use the portable POS. There has been a growing concern over the cash management in the stall. This has been necessitated by a recent burglary. Wal-Mat needs a solution that will ensure that cash drawers at client locations are emptied upon hitting a set target. Thus, the POS system needs to be fitted with “cash alert” features which will alert cashiers to empty cash. I would recommend Wal-Mat to install Cash Register Express – CRE – which has the feature and once installed will give alerts to cashiers, with a grace period within which to empty cash before they halt till cash is emptied. The CRE will first be tested on a three client terminals once successful it will be run on all clients ( Pos Nation 2011). The current printer has been having difficulties in printing out credit card and debit card receipts due to compatibility issues. This has resulted to being frustrated. In view of this, I would advocate Wal-Mart to purchase Epson TM – 88 printers, which has the capability to print out credit card in about a second. These printers should be purchased and then before being installed all the cashiers should be trained how to operate them. Thereafter, all the old Dot matrix printers will be maintained and four Epson TM – 88 printers will be installed in strategic locations within the stalls. Wal-Mat management has been having a problem with the escalating and electricity expenditure, which account for 40 % of the total running costs of the POS. This has been attributed to the use of CRO monitors at the client terminals. I would recommend Wal-Mart to replace CRO monitors with the TFTs monitors, which consume less electricity with immediate effect. References Pos Nation. 2011.CRE and RPE Protect Your CASH.Retrieved from http://posnation.com/articles/protect_cash.php Accessed on 9th November Read More