Viability of an electronic cash management system for fuel retailers in Inanda and Phoenix.
Many prospective fuel retailers are turning away from the industry due to the high cash volumes and the risks associated with cash management. Due to the regulation of the retail fuel price the profit margins are small. Therefore cash flow management is extremely important as fuel prices are adjusted monthly and cash needs to be readily available to make payments to the fuel suppliers. The cycle of cash from the point of sale system until the money reflects in the bank account can take several days. This affects the cash flow and is critical at the end of month fuel orders especially when there is a fuel price increase. Cash notes in circulation have continued to grow even despite the advent of electronic fund transfers. With service stations now being opened in areas were the inhabitants were regarded as “un-bankable” cash is still the primary means of trade. Security of cash and the security of those handling cash is a deterrent to the opening of businesses that deal with large volumes of cash notes. Anytime a human being touches cash there is a built-in level of inefficiency and the potential for loss. The aim of the study will be conducted into the viability of an electronic drop safe system within the retail fuel outlets in the Phoenix and Inanda areas. A sample of 35 fuel retail sites was drawn from the area with a population of 39 across all fuel brands. Data collection was done via a researcher administered questionnaire that was developed by the researcher. Face to face interviews were used as questions are based on cash security were asked. The respondents’ results revealed that they perceive real benefits to be offered by the electronic cash management system with respect to reconciliation and cash flow efficiencies.