Grocery Store POS & Inventory Management Software

Grocery stores have a difficult combination of high volume sales and an inventory that largely consists of perishable goods. Almost all grocery stores are automated to some degree, although the smallest stores may be limited to point of sales (POS). The three biggest issues for most grocery stores are inventory management, POS, and payroll/employee management. More sophisticated stores have began to focus on customer relationship management (CRM).

Grocery stores may receive multiple deliveries from multiple vendors every day. An efficient and accurate receiving system lets grocers verify new stock and enter it for immediate sale. Grocery stores and supermarkets typically have multiple checkout locations. While most items have UPC barcodes, some items, such as produce, is often keyed in by the cashier. The stores often employ minors after school, on weekends, and during school vacations. Work schedules and breaks are regulated for minors; the payroll systems should track minors’ hours, notify a manager if a minor is close to a violation, and complete all compliance reports. Recently, some supermarkets and grocery stores have started using email, text messaging, and social media to promote customer loyalty.

Accounts payable and general ledger are standard. For most stores, accounts receivable are also standard but some stores have running accounts for frequent customers. Most systems are on-premises. While software as a service (SaaS) options are available, there is generally little benefit for cloud-based systems due to the investment required in POS systems.

Key Requirements for Grocery/Supermarket Retailers

Grocery stores and supermarkets should evaluate the following functions, in addition to general business operations, to meet their unique requirements:

Sales on account Increasingly uncommon, some grocery stores and supermarkets still maintain open accounts for frequent customers. The POS should update the accounts and the systems should prepare bills as required.
Check processing The system should track the customers that have valid check-cashing privileges. It should frank checks at the POS station. Advanced systems will image and remotely deposit the checks.
Code look up Bulk items items such as produce are often not labeled. Cashiers need a look-up function to find the correct code. Advanced systems will have a picture as well as a description and will enter the code into the POS directly.
Coupon redemption The system needs to process coupons at check out. Advance systems will verify the coupon against purchased items and will calculate percentage-off amounts.
Coupon printing Many grocers provide coupons at check out. Advanced POS systems produce coupons based on the items purchased.
Self checkout Some stores allow customers to scan and pay for their own purchases. Self checkout must provide an oversight station and should be fully integrated with the security system.
Sell per unit weight The system should integrate with scales at check out. The cashier enters the code for the item and weighs it. The system calculates the final price and prints the weight, unit cost, and final price on the receipt.
Delicatessen system Stores with full service delicatessens benefit from a system with integrated scales and barcode printing systems. The server places the product on the scale, weighs it, and the system generates a label with the weight, price, and a barcode.
Suspend transaction The system should be able to suspend a transaction and move to another transaction. Later, the original transaction can be amended, edited, or cancelled.
Minor-aged employee management The system must track the schedules of minor-aged employees and check the hours worked and breaks against regulations. The system should notify management if scheduled hours would result in a violation. The system should produce any required compliance reports.
Inventory receiving The system should produce inventory receiving reports by vendor throughout the day as required. It should be able to process advance shipment notifications (ASN) to speed the receiving process.
Spoilage reporting Grocery stores and supermarkets sell perishable goods; the “sell by” dates must be tracked, expired inventory must be collected and disposed of, and the process properly documented.
UPC code catalog Building an inventory from scratch could take weeks. The inventory system must include a UPC code catalog with descriptions for common items to save time in building the inventory.
Bottle deposit tracking Eleven states have beverage bottle restrictions; Twenty-two have plans under consideration. The system needs to track deposits and bottle sales, and produce compliance reports.
Cash drawer management The system should support two-person cash drawer counting. It should be able to assign cash drawers to POS terminals so each cashier can bring a counted drawer at the beginning of a shift.
Security system integration The system should integrate the POS system and security systems, linking security recordings with transaction records.
ID scanning If the store sells restricted items, generally alcohol, tobacco, or pharmaceuticals, the system should scan and retain ID information for buyers and verify that the format of the ID is correct. However, it is often impractical to validate the IDs against government databases.
Employee Auditing One of the key management reports is the employee audit, which looks at profitability and transactions by employee. This helps protect the bottom line and helps prevent inventory shrinkage by holding employees accountable.
Customer relationship management Supermarkets are evolving from having check-cashing cards to full-featured. In particular, they are adopting social networking by establishing Facebook pages and tweeting coupons to registered customers.
Customer loyalty programs As part of CRM and to further solidify customer relations, many stores have customer loyalty programs. The store system should track sales history and monitor loyalty program points awarded and redeemed.
Promotional pricing The system should allow sale and promotional pricing. The pricing should change in the POS and inventory automatically at a specified time and date, if desired.

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Top 10 Most Recommended Systems

CounterPoint by Radiant Systems

Grocery retailers can manage all their accounting, point of sale, inventory management, and customer marketing with Radiant Systems’ CounterPoint. A great choice for both small, local grocers and larger chain operations.

Microsoft Dynamics GP

We recommend Microsoft Dynamics GP to grocers looking for an end-to-end ERP solution to help run their retail operations. Can be deployed both on-premise or in the cloud, and includes accounting, inventory, and CRM modules.

GoldTech Retail Manager

In a grocery environment, retail software is the heartbeat of operations. GoldTech Retail Manager connects critical POS and inventory functions. Real-time updating. Supports work orders, purchasing and receiving, and CRM.

ISS45 & ScanMaster by StoreNext

StoreNext provides point of sale software solutions for independent grocers. This vendor specializes in solutions for grocers that purchase directly from wholesalers. Also includes customer and inventory management functionality.

Epicor Retail Solutions

We often recommend Epicor retail software to grocers because of its strong point of sale, inventory management, supply chain, and accounting applications. Can be deployed either on-premise or hosted by Epicor.

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iVend Retail

As a fully PCI compliant solution, iVend Retail manages retail operations for all types and sizes of grocery environments. Delivers powerful POS functionality and robust tracking of goods, orders, and shipments.

NetSuite Multi-Channel Retail Management Suite

One of the strongest features of NetSuite Multi-Channel Retail Management Suite is its inventory management. Grocers can integrate their retail and supply chain operations to discover how to best manage inventory levels.

Openbravo Professional Edition

Featuring an open source, back-end environment, Openbravo delivers powerful customization with a full range of POS and inventory tracking functionality - from sales and refunds to warehouse management and reporting.

RDT

The integrated POS, CRM, and inventory management applications make RDT a powerful system for both independent and chain grocers. Strong accounting features round-out this complete on-premise retail solution.

Retail Time

Retail Time is a web-based point of sale system that can be used by small and medium-sized grocers. It combines POS, inventory management, customer management and eCommerce tools in a single retail suite.

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Free Download:
Retail Software Feature Checklist

Use this detailed side-by-side comparison matrix to evaluate POS and retail management systems across the top features and functions.

Free Download:
How to Assess Retail Software Vendors' Viability

Use this viability guide to make sure the software company you choose will be in business to provide support and upgrades for years to come.

Call us for a free
FastStart Consultation

(888) 918-2746

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