If retailers want to reduce the cost of cash handling and improve operational efficiency, then cash automation is the answer.
Up to 95% of the time staff spend on manual cash handling can be saved with cash automation solutions.
6 Disadvantages of Manual Cash Handling for Retailers |
| 1. Cash counting |
| 2. Cash differences |
| 3. Staff involvement |
| 4. Internal theft and fraud |
| 5. Store robberies |
| 6. Lack of control |
1. Cash Counting
Manually counting, sorting and balancing the day's takings is an extremely time-consuming and labour-intensive low-value job which often involves several members of staff.
This makes the whole cash handling process an expensive one for retailers.
2. Cash Differences
Having cashiers count cash manually increases the risk of cash differences which are difficult and costly to track.
Every time a cashier submits a cash total which does not match the amount registered by the till, it takes a lot of time and resource to correct the error.
3. Staff Involvement
Where cash is counted manually, multiple members of staff are often involved, both from the front and back office.
And due to the frequency of cash counting errors, it is not uncommon for staff to have to recount money or for senior managers to have to get involved as an extra pair of eyes.
Administration
alone represents
72% of cash
management
costs. This
includes the
time spent on till
reconciliation.
4. Internal Theft and Fraud
Of the money retailers lose every year due to shrinkage, around one third of that is estimated to come from internal theft. In shops where cash is exposed at the point of sale and all the way to the back office, the risk of staff taking cash for themselves increases.
As well as the direct costs, manual handling of cash can lead to serious trust issues and a high rate of employee turnover.
5. Store Robberies
External theft is another major cause of shrinkage and is made far more likely in stores where cash is exposed and has to be carried by a member of staff from the till to the back office.
The security risk which this creates impacts on the retention of customers and staff.
6. Lack of Control
Retail managers have no online overview of in-store cash levels so cash handling becomes an extremely inefficient process. Not being able to automatically recycle cash at the point of sale also impacts on cash flow efficiency.
Automated Cash Handling for Retail
If retailers want to reduce the cost of cash handling and improve operational efficiency, then cash automation is the answer.
Up to 95% of the time staff spend on manual cash handling can be saved with cash automation solutions.
Options include systems for cash deposit, cash recycling and closed cash handling.
With optimised cash handling procedures and less back-office administration, staff focus on the customer, not the cash.
Advantages include the elimination of cash differences, automatic reconciliation and the refocusing of resources onto more value-driven activities.
And since cash is no longer exposed or handled manually, stores are much safer, and shrinkage is reduced.
