In the fast-paced world of food and beverage retail, data is king. Point-of-sale (POS) systems have long been the backbone of retail operations, providing real-time insights into sales trends, customer preferences, and inventory turnover. However, while POS data offers a snapshot of the front-end performance, it often lacks the depth needed to fully understand the financial health of a business. To gain a comprehensive view, retailers must also consider the wealth of information contained within supplier invoices.
POS systems excel at capturing transactional data like what was sold, when, and at what price. While this information can be invaluable for tracking sales performance and managing inventory, POS data typically doesn't provide insights into the cost of goods sold, supplier pricing fluctuations, or additional charges such as delivery fees and taxes.
Without this information, retailers may find it challenging to assess profit margins accurately or identify areas where costs can be reduced. While POS data answers the “what,” it rarely answers the “why” behind costs or profitability changes.
To illustrate: a sudden dip in profit margin on a best-selling item may be invisible in POS data alone, as it doesn’t show that the wholesale cost quietly increased. Similarly, hidden fees like fuel surcharges or order minimum penalties which are found only in supplier invoices may accumulate and impact profitability without detection. POS systems show performance, but not the context behind it. That context lives in the invoice data.
Supplier invoices are a treasure trove of information that, when analyzed effectively, can reveal critical insights into a business’s operations. Invoices detail the actual costs of products, including any discounts, surcharges, or taxes applied. They can also provide information on delivery schedules, payment terms, and supplier performance.
For example, a retailer can monitor changes in supplier pricing over time to identify trends, uncover hidden fees or discrepancies that may be impacting margins, and assess a supplier’s reliability based on fulfillment accuracy and consistency. This kind of information is rarely captured in POS systems, yet it is vital for cost control and strategic sourcing.
Using POS and invoice data together doesn’t just offer a more complete view of operations, it can also drive measurable financial gains. According to McKinsey & Co, businesses that adopt advanced data strategies integrating operational and financial data can see improvements in EBITDA ranging from 15% to 25%!
These improvements come from better visibility into cost structures, improved pricing decisions, and reduced inefficiencies, all from the smart use of data you already have. When both revenue and expenses are analyzed together, retailers gain the clarity needed to proactively adjust strategies in real time, rather than responding after financial statements reveal a problem.
Manual invoice processing continues to be the norm for many small and mid-sized retailers, but it is inherently prone to error. A 2021 study by Ardent Partners revealed that 22.5% of invoices contain exceptions, meaning something went wrong and manual intervention was needed. These could include pricing mismatches, incorrect totals, or missing line items. Each error costs time and money to resolve, and if missed, can result in overpayments or underreported expenses.
Automating this process not only catches and eliminates those risks but frees up staff to focus on higher-value tasks.
Clearly, accurate, real-time data integration doesn’t just boost profitability, it also supports smarter inventory management and sustainability goals. When food and beverage retailers can match what’s selling via POS with what’s being purchased via invoices, they can optimize order quantities to reduce excess stock and prevent waste.
Better forecasting starts with better data, and invoice analytics are key to achieving it. In fact, according to a 2023 report by The Food Industry Association, the U.S. grocery sector alone loses the chance to earn around $18 billion in profits annually to food waste, a significant portion of which is due to over-ordering and inaccurate forecasting. Integrating invoice insights helps close this gap by providing a more accurate view of purchasing habits and supplier performance.
Zaiko was built to make this level of data integration easy. By automating the invoice scanning process and transforming PDFs or images into structured, searchable data, Zaiko gives food and beverage retailers a powerful tool to track supplier prices, spot discrepancies, and calculate true margins.
This means business owners no longer need to rely on guesswork or spend hours cross-referencing paperwork. Instead, they can see how their spending aligns with their sales, and where improvements can be made. With the ability to unify procurement and sales data in one place, Zaiko becomes a strategic partner in making data-informed decisions that drive profitability and operational agility.
POS systems are indispensable, but they only tell one side of the story. To truly understand margins, manage costs effectively, and make strategic decisions, food and beverage retailers need to unlock the insights hidden in their supplier invoices too.
When combined with sales data, invoice insights create a clear and complete view of business health. With tools like Zaiko, this integration becomes seamless, empowering retailers to run smarter, leaner, and more profitable operations without the burden of manual data entry.
Sources Referenced:
https://www.ipayables.com/wp-content/uploads/2021/08/ArdentPartners-Best-in-Class-AP.pdf?
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Answers to popular questions you might have about Zaiko.
Zaiko helps retailers increase profits by automating data entry for Direct Store Delivery (DSD) invoices. Our AI technology reduces errors, eliminates manual labor, and ensures real-time accuracy, allowing you to cut costs and uncover savings. It integrates with existing ERP, POS, and inventory management systems to enhance operational efficiency and boost profit!
Zaiko is ideal for small to medium-sized businesses, retail chains, and distribution centers that want to streamline their invoice and inventory processes. It’s perfect for teams seeking to reduce manual work, improve accuracy, and gain valuable operational insights.
Security is a top priority for Zaiko. We use end-to-end encryption, industry-standard data protection protocols, and secure data centers to ensure your information is safe. Additionally, role-based access controls allow you to manage user permissions effectively within your team.
Yes, Zaiko integrates seamlessly with various existing systems, including ERP platforms, POS systems, and inventory management software. Our flexible integration options ensure that your workflow remains smooth and efficient, enhancing your current processes without disruption.
Definitely! Zaiko is designed with a user-friendly interface that makes it easy for both technical and non-technical users. The platform allows you to upload invoices, manage inventory, and view insights without needing specialized technical knowledge.
