Retail remains a cash-intensive industry, and a robust cash-handling process is key for operators determined to stay competitive.
Even with the increased frequency of other forms of payment, retail operations are still largely cash-run enterprises, with cash accounting for more than 30 percent of all transactions. But as cash flow grows, so does the risk. Having a proper and scalable cash-handling system in place can play a key role in the success of small- to mid-size businesses.
Choosing the right provider that offers the right suite of solutions is more important than ever for the success of small and large retail operations. The problem is that there is no one-size-fits-all answer. Here are six key benefits that your business should be getting from an effective provider of cash-handling solutions.
With margins already tight, loss or theft—both internal and external—can devastate a retail business. In 2017, the U.S. lost nearly $50 billion in shrinkage costs. Employee theft accounts for 75 percent of retail industry losses—a staggering $36 billion worth of annual sales.2 In-store cash-handling solutions, such as smart safes, use automation to help reduce the risk of loss and theft by eliminating touch points in a business’ cash-handling processes.
Many cash-handling service providers also implement a custom armored cash-in-transit pickup and delivery schedule to make sure the operation always has the right amount of cash on hand. Too little cash and businesses can experience operational disruptions. Too much money in the safe can create a liability for customers and employees and increases the risk of potential robbery. Not only does a smart safe solution keep cash secure, it also helps eliminate the need for employee trips to the bank, further reducing the chance of either internal or external theft.
Not only does a reduction of touch points reduce risk, it increases operational efficiency and cost savings. With cash-handling solutions in place, employees spend less time training or learning complicated, often outdated processes. Many smart safe solutions include built-in tutorials, which free up employees’ time for tasks that are more vital (and more profitable) to the core business. And built-in diagnostic systems help employees troubleshoot potential issues, helping minimize safe downtime for maintenance.
Faster access to cash and data
Transparency is one of the key benefits of effective cash-handling. Streamlined and automated processes and benefits, such as smart safes and daily provisional credit through bank partnerships, give businesses faster access to their cash. More technologically driven cash management providers also offer real-time access to reporting data and account information through online customer portals. This visibility can facilitate better decision-making, allowing businesses to more effectively manage and scale their operations.
No more downtime
In the fast-paced world of retail, no one can afford downtime, whether from cash shortages, human error, or maintenance issues. Superior cash-handling capabilities can help eliminate the possibility of downtime with advanced monitoring and diagnostics. Features such as predictive maintenance and remote diagnostics reduce the need for in-person visits from techs. Remote system monitoring and built-in wireless connectivity help the provider stay on top of possible issues and solve problems before they happen. This helps ensure that the whole system runs at optimal efficiency.
No two operations have the same needs. And there’s certainly no one-size-fits-all cash-handling solution. The right cash management provider should be able to accommodate a business’ specific needs, whether it’s a small local chain, a larger regional operation, or a national corporation. Designing the best system can include developing a tailor-made cash-in-transit schedule, outfitting stores with the right smart safe configuration, and giving businesses better, quicker access to their reporting information.
A true partnership
Ultimately, the goal of smart cash-handling is to help businesses save—and make—money. It’s in the cash management provider’s best interest to make sure its customers are happy, safe, and profitable. That involves really knowing how the business runs and asking the right questions. The provider will then be able to offer recommendations on the best solutions for the business operation. And service shouldn’t stop at installation. Cash management providers should also offer outstanding customer service and support, helping solve, or even anticipate problems, giving businesses added peace of mind.
Learn more about the Loomis SafePoint cash management solutions.