by Janine Jurji on Jul. 15,2019
If you’re in the retail space you’ve no doubt heard these acronyms thrown around many times. While some are more popular and have been around for years, are they actually that different or have we started using them interchangeably to mean the samething?
Let’s start at the beginning.
What is aPOS?
POS is the most common of the four acronyms and stands for Point of Sale, or more recently Point of Service. Traditionally, POS software was built to handle the processing of atransaction. The sales associate scans the item and charges the customer for their purchase, processes areturn, or goes through with an exchange.
Modern POS solutions are so much more than just apoint of purchase. Many POS solutions include various other management tools such as inventory management, customer relationship management (CRM), reporting, as well as more Point of Service qualities like being able to schedule appointments and repairs.
You’ll notice wesay“more than aPOS” throughout the iQmetrix site. That’s because there are so many other business modules within our software, which makes it so much more than atraditional description of aPOS. And that’s where the playground getsmuddy.
What isRMS?
RMS stands for Retail Management System, and refers to the modern-day, more robust POS Idescribed above.
RMS is an amicable example of the industry attempting to rename aproduct to better describe its usage and implementation today. But, adoption was low, which is why most companies will include both POS and RMS in their marketing.
What isERP?
ERP stands for Enterprise Resource Planning and refers to business management software that takes care of all aspects of your business — manufacturing, accounting, sales, marketing, etc.
A lot of the functionality of an ERP crosses over with amodern-day POS, and that’s why when you Google ERP vs. POS, so many results come up. The most common usage today is to integrate an ERP with aPOS to create apowerhouse of efficiency.
ERP software was initially focused on large enterprise but as lite versions have come into play, they are gaining more popularity within small and medium businesses (SMBs) too. They have areputation for being clunky, expensive, inflexible, and complex. As aresult, ERP software usually takes along time to implement.
What isSOS?
Okay, slight confession to make. SOS is not quite areal term, so don’t beat yourself up if that stumped you. It stands for Store Operating Software and has been favored lately by industry analysts as the most accurate term when it comes to describing retail operating systems (ROS… the acronyms are truly endless).
I included this one partially in jest; the acronym is ironic given the term’s intended use is to provide clarity - but unless the market adopts it, it’s just another three-letter acronym we need to Google.
So Where Does That LeaveYou?
POS and ERP are the main names in the game and which software you go with depends primarily on what business problem you are trying tosolve.
Regardless of which you choose, here’s what you should be looking for in your retail operating system provider.
- Choose Something Flexible: your business won’t be in the same place amonth, year, or adecade from now. Asolution that will grow with you and meet your future needs will save you constant switching costs.
- Allow for Integrations: whatever system you choose will need to integrate with all the other systems you have in place, or provide you with better alternatives. Ask about partners and APIs but be wary of those that tell you, you don’t need anything other than their solution.
- Out of the Box and Custom: this depends on your size but, ultimately, you can get up and running faster (and less expensively) if there’s out-of-the-box functionality you can leverage. If you’re asmall retailer, out of the box might be all you need but as you grow, you will need custom components built just for you. This ties back to the first point of choosing something you can growwith.
- Gut Feel: I’m going to get alot of eye rolls here but this is such an important part of decision making. Richard Restak, awell-known neuroscientist and author of The Naked Brain, talks about how gut feel decisions, which are made in the limbic brain, tend to be faster, higher-quality decisions than those made with the rational brain. You can read more about that here. All that to say, make sure you feel good about your future business partner.
If you’re interested in learning about iQmetrix’s POS, feel free to scour our website—I recommend starting here—or reach out to chat to someone directly.
Certainly! I'll provide insights into each of the concepts discussed in Janine Jurji's article about POS, RMS, ERP, and SOS in the retail space.
POS (Point of Sale/Point of Service): This acronym denotes the traditional checkout location where transactions occur. Over time, POS systems have evolved to offer more than just transaction processing. Modern POS solutions often integrate inventory management, CRM functionalities, reporting tools, and additional features like appointment scheduling and repair management.
RMS (Retail Management System): An expanded version of POS, RMS encompasses a broader scope of functionalities within a retail setting. Despite attempts to rename and rebrand POS as RMS to better represent its modern usage, the adoption of the term has been limited. Consequently, many companies incorporate both POS and RMS terminologies in their marketing.
ERP (Enterprise Resource Planning): ERP refers to comprehensive business management software that covers various facets of a business, including manufacturing, accounting, sales, marketing, and more. There's overlap between the functionalities of ERP and modern POS systems. Integration of ERP with POS is common, creating a robust and efficient business solution. Initially designed for large enterprises, ERP software has expanded to cater to small and medium-sized businesses (SMBs), albeit with a reputation for being complex, expensive, and challenging to implement.
SOS (Store Operating Software): Although not widely recognized in the industry, SOS (Store Operating Software) has been proposed by some analysts as a more accurate term for describing retail operating systems. However, its adoption remains limited, leading to it being regarded as just another acronym in the plethora of retail software terms.
In the article, the author emphasizes the importance of choosing a flexible system that can adapt to a business's evolving needs. Integration capabilities with existing systems, out-of-the-box functionality, and the option for custom components are crucial considerations. Moreover, the article touches on the significance of intuition or "gut feel" in decision-making, highlighting its role alongside rational decision-making processes.
The key takeaway for businesses seeking retail operating systems is to assess their specific needs, ensuring the chosen system aligns with their current requirements while allowing for future growth and integration possibilities.
As for iQmetrix's POS, the article suggests exploring their website for more information or engaging in direct conversation for a chat or demo to understand how their system fits into the considerations highlighted in the article.
