Point of sale

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This article describes checkout technology. For the managed care plan, see point of service plan. For the game featured on The Price Is Right, see Check-Out.
 This article may require cleanup to meet Wikipedia's quality standards. Please improve this article if you can. (July 2009)
Point of sales at a Target store.

Point of sales (POS) or checkout refers to both a checkout counter in a shop, and the location where a transaction occurs. Colloquially, a "checkout" refers to a POS terminal or more generally to the hardware and software used for checkouts, the equivalent of an electronic cash register. A POS terminal manages the selling process by a salesperson accessible interface. The same system allows the creation and printing of the voucher.

Contents

[edit] History

[edit] Early Software (Pre-1990's)

Early electronic cash registers (ECR) were programmed in proprietary software and were very limited in function and communications capability. In August 1973 IBM announced the IBM 3650 and 3660 Store Systems that were, in essence, a mainframe computer packaged as a store controller that could control 128 IBM 3653/3663 Point of Sale Registers. This system was the first commercial use of client-server technology, peer to peer communications, Local Area Network (LAN) simultaneous backup, and remote initialization. By mid-1974, it was installed in Pathmark Stores in New Jersey and Dillard's Department Stores.

Programmability allowed retailers to be more creative. In 1979 Gene Mosher's Old Canal Cafe in Syracuse, New York was using POS software written by Mosher that ran on an Apple II to take customer orders at the restaurant's front entrance and print complete preparation details in the restaurant's kitchen. In that novel context, customers would often proceed to their tables to find their food waiting for them already. This software included real time labor and food cost reports. In 1986 Mosher used the Atari ST and bundled NeoChrome paint to create and market the first graphical touchscreen POS software

[edit] Hardware Interface Standardization (Post-1990's)

Vendors and retailers are working to standardize development of computerized POS systems and simplify interconnecting POS devices. Two such initiatives are OPOS and JavaPOS, both of which conform to the UnifiedPOS standard led by The National Retail Foundation.

OPOS, short for OLE for POS, was the first commonly-adopted standard and was created by Microsoft, NCR Corporation, Epson and Fujitsu-ICL. OPOS is a COM-based interface compatible with all COM-enabled programming languages for Microsoft Windows. OPOS was first released in 1996. JavaPOS was developed by Sun Microsystems, IBM, and NCR Corporation in 1997 and first released in 1999. JavaPOS is for Java what OPOS is for Windows, and thus largely platform independent.

There are several communication protocols POS systems use to control peripherals. Among them are

  • EPSON Esc/POS
  • UTC Standard
  • UTC Enhanced
  • AEDEX
  • ICD 2002
  • Ultimate
  • CD 5220
  • DSP-800
  • ADM 787/788.

There are also nearly as many proprietary protocols as there are companies making POS peripherals. EMAX, used by EMAX International, was a combination of AEDEX and IBM dumb terminal.

Most POS peripherals, such as displays and printers, support several of these command protocols in order to work with many different brands of POS terminals and computers.

[edit] Web Based POS (Post-2000's)

Web based POS can run it on any computer with an Internet connection, without software installations or updates required. It runs on secure servers in multiple data centers with real-time backups.

[edit] Industry

[edit] Retail industry

Main article: Retailing

The retailing industry is one of the predominant users of POS terminals. Just Jeans, corporate head of Jay Jays and Dotti, is using Fujitsu TeamPOS 2000 across its 650 stores, for a $2.8 million deal (around $4,308 per unit store) [1].

[edit] Hospitality industry

Main article: Hospitality

Hospitality point of sales systems are computerized systems incorporating registers, computers and peripheral equipment, usually on a computer network which exist in the food service industry. Like other Point of sale systems, these systems keep track of sales, labor and payroll and can generate records used in accounting and book keeping. They may be accessed remotely by restaurant corporate offices, troubleshooters and other authorized parties.

Point of sales systems have revolutionized the restaurant industry. This is particularly the case in fast food service and sales. A number of restaurant chains employ systems which use computer networks. In the most recent technologies, registers are virtual computers, sometimes using touch screens. They will connect to a server, often referred to as a "store controller" or a "central control unit." Printers and monitors are also found on the network. Additionally, remote servers will connect to store networks and monitor sales and other store data.

The efficiency of such systems have decreased service times and increased efficiency of orders.

Hospitality point of sale systems have revolutionized the restaurant industry. This is particularly found in fast food service and sales. A number of restaurant chains employ systems which use computer networks. In the most recent technologies, registers are virtual computers, sometimes using touch screens. They will connect to a server, often referred to as a "store controller" or a "central control unit." Printers and monitors are also found on the network. Additionally, remote servers will connect to store networks and monitor sales and other store data.

The efficiency of such systems has decreased service times and increased efficiency of orders.

Another innovation in technology for the restaurant industry are Wireless POS. Many high end restaurants as well as casual restaurants who do high volume benefit greatly from a Wireless Handheld POS. Servers hold PDA sized POS systems that take orders and sends it directly to the kitchen in real time. This also leads to happier guests who usually orders more food, tip more and overall leads to a loyal customer. The presence of Wireless Handheld POS are widely used in countries in Asia and Europe but the presence in the United States have increased drastically in the past decade. The reason is that most restaurateurs realize that ROI is easily achievable. Sam's Chowder House, a restaurant in San Francisco, California achieved ROI in one month - while increasing overall sales by 30%. The restaurant used Digital Dining POS software with Motorola hardware.

Currently, POS systems are manufactured and serviced by several firms; see point of sale companies category. Point of sales systems in restaurant environments operate on DOS, Windows, Linux or Unix environments. They can use a variety of physical layer protocols, though Ethernet is currently the preferred system.

In the fast food industry, a number of configurations may be used to aid in the speed of operations. Registers themselves may be in front counter, drive through or walk through cashiering and ordertaking modes. Front counter registers will take and serve orders at the same terminal. Drive through registers will allow orders to be taken at one or more drive through windows and cashiered and served at another. In addition to registers, drive through and kitchen monitors may be used by store personnel to view orders. Once orders appear they may be deleted or recalled by "bump bars", small boxes which have different buttons for different uses. Drive-thru systems are often enhanced by the use of drive-thru wireless (or headset) systems which enable communications with drive-thru speakers.

[edit] Restaurant business

Restaurant POS refers to the Point of sale (POS) software that runs on computer systems that are usually configured with either touchscreen terminals or wireless handheld devices. Restaurant POS systems are essential to the successful operation of most foodservice establishments because they allow the business to track transactions in real time.

Typical restaurant POS software will handle daily tasks such as printing guest checks, printing orders to kitchens and bars for preparation, processing credit cards and other payment cards, and running reports. In addition, some systems implement wireless pagers and electronic signature capture devices.

Currently, POS systems are manufactured and serviced by such firms as IBM, MICROS Systems, Panasonic, Radiant Systems, and Squirrel Systems, among others (see the point of sale companies category for complete list).

In the fast food industry, a number of configurations may be used in able to aid in the speed of operations. Registers themselves may be in front counter, drive through or walk through cashiering and order taking modes. Front counter registers will take and serve orders at the same terminal. Drive through registers will allow orders to be taken at one or more drive through windows and cashiered and served at another. In addition to registers, drive through and kitchen monitors may be used by store personnel to view orders. Once orders appear they may be deleted or recalled by "bump bars", small boxes which have different buttons for different uses. Drive through systems are often enhanced by the use of drive through wireless (or headset) systems which enable communications with drive through speakers.

POS Systems are often products designed by the manufactures for a variety of clients, which can be programmed by the end users to suit their needs. Other clients, particularly McDonald's write their own specifications for the vendors to create. In some cases, POS systems are sold and supported by third party distributors, while in other cases they are sold and supported directly by the vendor.

Wireless systems consists of drive though microphones and speakers (often one speaker will serve both purposes), which are wired to a "base station" or "center module." This will, in turn broadcast to headsets. Headsets may be an all-in-one headset or one connected to a belt pack.

[edit] Hotel business

POS software allows for transfer of meal charges from dining room to guest room with a button or two. It may also need to be integrated with property management software.

[edit] Checkout System

A checkout system generally involves the following components:

  • General Computer Hardware
  • General Computer Software
  • Checkout Hardware
  • Checkout Software
  • Miscellaneous Store Hardware

Because of the expense involved with a POS system, the eBay guide recommends that if annual revenue exceeds the threshold of $700,000 per annum, investment in a POS system will be advantageous[2].

Currently, POS systems are manufactured and serviced by such firms as IBM, MICROS Systems, Panasonic, Radiant Systems, and Squirrel Systems, among others (see the point of sale companies category for complete list).

Point of sales systems in restaurant environments operate on DOS, Windows or Unix environments. They can use a variety of physical layer protocols, though Ethernet is currently the preferred system.

[edit] General Computer Hardware

Generally a IBM-compatible PC, commoditized, which includes:

[edit] General Computer Software

[edit] Checkout Hardware

Specific to the POS industry, generally including:

[edit] Checkout Software

There are various POS software out on the market, including:

Top software, based on U.S. Install Base:

The next seven Companies represent 28% of the U.S. install base with not one of the seven companies holding more than 6%. Most in this group are holding only 2-3%. More than half of the remaining seven solutions are no longer actively sold.

[edit] Miscellaneous Store Hardware

[edit] Accounting forensics

[edit] Tax fraud

Main article: Automated sales suppression device

POS systems record sales for business and tax purposes. Illegal software dubbed "zappers" is increasingly used on them to falsify these records with a view to evading the payment of taxes.

[edit] References

  1. ^ "Just Jeans Group Implements Fujitsu TeamPOS 2000 across 650 Stores". http://www.fujitsu.com/au/news/pr/archives/2003/20030821-02.html. Retrieved on 2009-07-23. 
  2. ^ "Point of Sale (POS) Systems Buying Guide". http://pages.ebay.com/buy/guides/point-of-sale-pos-system-buying-guide/. Retrieved on 2009-07-23. 
  3. ^ Source: Chain Store Guide 2004 Market Study of FoodService Technology - Top 768 chains, counted by Company

[edit] Related Pages

[edit] External links

Retrieved from "http://en.wikipedia.org/wiki/Point_of_sale"