Online Sales and Inventory System For De Oro Therapeutic Center

A Project Proposal Presented to College of Science De La Salle University Dasmarias

In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Information Technology

Andres, Meljoyce G. Baldoza Jr., Arlito T. Mendoza, Rizza M.

July 2010

CHAPTER 1 INTRODUCTION

1.1 Background of the Study In the modern world, online can be defined as the accessibility of an entity via a computer or being connected to a computer network. It is the capacity to reach out to other entities that may be geographically apart, or having the connection in one thread, which is, the World Wide Web. Almost anything nowadays can be found onlineprivate personalities, celebrities, business companies, organizations, government agencies, media groups, and almost everything else. Because of the wide scope and demand of having an online presence, companies are using the online world to reach out to more clients. This includes processes of inquiry about the company, negotiations among sales and customs, and product inventory. Among others, sales and inventory are two of the most important aspects in a business firm, especially those who deals with vast number of diverse clients. Stores of different nature are usually the ones who usually take full usage of these business strategies. However, the process of sales and inventory in the Philippines nowadays are not as inclined as that of other leading countries. Many technological advances are already introduced in the Western countries in response to the arising demand of selling, but only those high-end companies here in the Philippines use the said advancements. This problem among stores arises as the demand for better selling facilities grow. Companies of such nature need a quality system that could offer customers an opportunity to inquire for a product, buy, and pay their bills even miles away from the company.

The need for a more advanced system arise competition among companies. This somehow encourages firms to further improve their current system and get away from the traditional way of selling and inventory. Because of this, the use of internet and web applications to improve the sales and inventory system surfaced. De Oro Therapeutic Center is just one of the many who practices traditional way of recording their sales and inventory. De Oro was founded on March 2004 by Manuel Ayson Roa. It started when Mr. Roa got an idea of product networking from a Chinese friend on 2002. Their very first products were medicinal soaps, because that was the time when traditional herbal products hit the market. After two years of product networking, their products grew from soaps to herbal teas, natural cosmetics, and personal care products like lotions and the like. From then, he noticed that their products were very marketable, and many people were constantly buying their products. This brought up the idea of making a store for all the products. Today, after six short years, De Oro has surprisingly grew to 64 branches nationwide, most of which are situated in malls and commercial places. Their main and biggest branch is located in Sta. Cruz, Manila. De Oro sells a variety of merchandise from food supplements, health care, personal goods, cosmetics and adult products. Under food supplements are capsules, coffee, tea, syrup, and wine; under health care, ointment, napkin, feminine wash, health oil, and plasters; under personal goods, hair spa, shampoo, bath salt, soap, lotion; under cosmetics, facial cream, lip balm, sun block, toner, powder; under adult products, condom, contraceptive pills, sex cream, viagra, aphrodisiacs. All products that are sold in each branch are coming from a common warehouse located at their main branch. Each branch has one designated branch manager which

handles the transactions from their respective branches to the main branch to other sister branches. De Oro is one of the leading suppliers of cosmetic and health products in the country today. Since the products that De Oro sells are those that are not commonly found in the local market, it is very much suitable for such advancement because customers will have an easier way to look for and purchase the products that they want to buy. Aside from this, the company will have a better way to connect with a wider scope of customers. Although De Oro has a lot of branches nationwide, they are not easily noticed because of their small, almost booth-like stores. Having an online system will provide them a more effective way to advertise their products.

1.2 Statement of the Research Problem De Oro Therapeutic Center is still encountering several problems when it comes to their sales and inventory process. These problems are brought about mainly by their poor record keeping and inefficient monitoring of transactions and updating of files. The first main problem that the company is experiencing is the huge tendency of inaccuracy in all their transactions because of their poor record keeping. Almost all transactions are recorded in logbooks and paper files. Because of this, the files have the tendency to be lost or mishandled by the workers or the customers. This problem of record keeping also brings up other problems with regards to data security. Files are not secured because anybody can access it and there are no restrictions in doing because of the logbooks and paper files.

The second main problem is regarding the companys monitoring of transactions. In the existing system of the company, all the transactions of the store branches are only directed to the main branch every month. The main branch does not monitor all the branches daily transactions because of their physical location. In a company, it is important that the main branch or the manager consistently monitors all of their branches activities so that problems will be easily resolved. Another main problem is when it comes to updating of files. Since files are stored in different, separated paper files and logbooks, it is very difficult to update all the files consistently. When a single file is updated, other files will not be updated automatically. Because of this, data consistency and redundancy becomes an issue. Data has a huge tendency to be inconsistent because files are not connected to each other. Also, when same data are present in different files but with the same content and purpose, it is already being redundant. Reports generation is also affected by these problems because with the poor record keeping and file updating, reports cannot be generated on time. Regarding the ordering process of stocks between the main branch and the store branches, problems are also encountered because orders are made only through telephone calls and there are no formal requests and official records made from the store branch and the main branch.

1.3 Statement of Objective 1.3.1 General Objective To develop an Online Sales and Inventory System for De Oro Therapeutic Center.

1.3.2

Specific Objectives To gather information from the company regarding the existing system by conducting interviews.

1.3.2.1

1.3.2.2 1.3.2.3

To analyze the existing system using Data Flow Diagram. To improve their existing system by eliminating redundant and inefficient process by creating a new system using PHP.

1.3.2.4

To provide customers an easier way to transact with the company by incorporating an Online Sales and Inventory feature.

1.3.2.5 1.3.2.6 1.3.2.7

To develop a database for their Sales and Inventory using MySql. To develop a business website for De Oro Therapeutic center. To improve the connection between clients and management by establishing online presence of the company.

1.3.2.8 1.3.2.9

To provide easier access of bills through online payment module. To help the management to supervise the database by creating an internet log-in system for administrator side.

1.4 Significance of the Study This study is very significant to many people who will actually use the system. Such benefits include the following: To the management. Having an online sales and inventory system for the company will improve their transactions and will reduce the common problems that they are currently experiencing. Work will be done more efficiently and the company will save more time, resources and man power. There is a probability that they can attract more clients because of the online convenience.

The company staff. The online sales and inventory system will help the company staff do their works easily. It will help them to reduce their work. Also, it is much more convenient for the employees to have less paper files. To the clients. The clients will experience most of the benefits of the online system because they will be able to inquire and buy products through the internet. They will also save time and effort instead of going to a branch to look for a product. To the proponents. For the proponents, this study would help them to be more aware of what is currently happening in the real world and give them the idea on how to develop a real system for a real company that meets real problems and real solutions. To future researchers. For those who would be proposing the same type of system in the future, this study would give them an idea on how to conduct the same study, what to expect upon the company and how to develop and enhance a system in the future.

1.5 Scope and Limitations of the Study This study intends to make an Online Sales and Inventory System for De Oro Therapeutic Center that will resolve all the problems encountered by the proponents. This system is planned to contain modules for an sales, inventory, and reports generation. The site will hold three types of login access, namely the customer, staff and administrator. The customer, which is the default user of the system, will be able to access only the online shop. The staff can access the on-thecounter shop for walk-in customers while the administrator accounts can access all levels of login and will have the capacity to hold, edit and maintain the database and the system itself. In the aspect of sales, the online shop module of the system will cover online product inquiries with online product catalog, online cart system type of shopping, and online payment

through a dummy credit card system. It will also include the delivery of the ordered products nationwide and charging of additional shipment and delivery fees. Availability of discounts and promos will also be included. Terms and conditions will also be included stating the policies for shopping, delivery, discounts, and return and exchange of selected product items. It will also incorporate the LBC policy charges for delivery being the official product carrier of the company. Printing of official receipts and proof of purchase for delivery acceptance will also be generated by this module. Also, for the on-the-counter shop module, walk-in customers will be entertained by the system through an automated counter shopping. This feature will only include updating of product inventory by the store branches for selling of products and receiving of stock from the main branch. On-the-counter official receipts will also be generated by this module. The computation of sales per branch will be centralized, meaning that the main branch will hold the overall record of sales for all of the 64 branches. However, the system administrator or the overall manager has the capacity to access the centralized sales record, and the store branch staff can only access the sales of their respective branches. On the other hand, the inventory module will consist of monitoring of products stock, ordering of supplies from the supplier, and distribution of stock from the main branch warehouse to the store branches. Inventory of products will be held individual per store branch, and the main branch will also have a separate inventory for the overall warehouse. Updating of products (add, edit and delete features), adding stock, products, categories and branches will also be under the inventory module, as well as viewing the critical level of products. Disposal of expired will also be under this module.

For the reports generation, each store branch has the capacity to print inventory reports, sales report and stock order requests to the main branch via the on-the-counter shop. For the administrator side, reports such as daily, weekly, monthly and yearly sales as well as inventory reports will also be generated. However, all the transactions beyond the aforementioned processes are not included in the study. The study is only concerned with the transactions held between the store branches and the customers, and between the store branches and the main branch, and between the main branch to the supplier. Other transactions that are beyond sales and inventory are not included in the study. Also, delivery outside the Philippines is not included in the system as well as giving incentives to the customers and other services offered by the company that are beyond the sales and inventory aspect.

1.6 Methodology of the Study This study will be put in actuality using the V-model. Since this model is focused mainly on activity and correctness, developers and researchers can easily see backlashes on the system. It is also more appropriate for the kind of system proposed in this chapter because since billing and reservation has involved many different processed, it is easier to track errors using the Vmodel. This will minimize confusion to the developers and even to the people who will use the system.

Figure 1.1 V Model

Requirements Analysis Operation and Maintenance

System Design

Acceptance Testing

System Testing Program Design Unit and Integration Testing

Coding

Requirements analysis. This is the first phase of the V-model wherein the proponents would have to analyze all the things needed for the system as well as the objectives and the specifications given by the customers and users. This is where they need to know all the processes happening in the existing and analyze it according to how the customers would want the new system would be. In this phase, the proponents will gather all the needed information from De Oro Therapeutic Center by conducting interviews with the management of the center. System design. In here, the overall flow of the system is planned. Everything that resulted from the requirements analysis will be carried over in this stage. This is where all the functionalities of the system are planned.

In this, logical data flow diagrams will be used to analyze the existing system of the company. Program design. Since system design have already been formulated, this is the phase where the proponents will plan the aesthetical or the external view of the system. They will plan how the system would be user friendly using user interfaces. In this stage, the proponents will make sure that every process will not seem too complicated on the users end. Coding. This all the plans made in the previous phases will be translated into computer codes. This is where executable programs will be made. The proponents will use Notepad++ as a text-editor to encode the programs and web codes necessary for the system. HTML and CSS will be used to generate efficient website in which the system will be incorporated. Also, PHP and MySQL will be used to program the systems database and client-server needs. Unit and integration testing. This is the first among the three testing steps wherein the proponents will have to check all the errors on the users aspect. The output in these tests must reflect to the program design. The proponents will have to check each part of the system and integrate it as a whole to check if unit of system is working altogether. System testing. As the name itself suggests, the proponents will test how the actual system works. In this we would have to reflect on everything that we have done in the system design. In this phase, the functionality of the system will be checked by the proponents. The proponents will also check any error occurring in the system.

Acceptance testing. This is the last part of the testing processes. Through acceptance testing the proponents will make sure that all the requirements that had been given in the requirements analysis will be totally met. They also have to make sure that it is not only complete, but also produces the same output as what was originally want to be. The proponents will make sure that all the requirements are fulfilled and that the system properly addresses to the needs of the company. Operation and maintenance. Here comes the implementation of the new system. However, the development not only ends with implementation because it needs to be consistently monitored and maintained. In this phase, whenever errors occurred in the system, the proponents shall correct the errors and ensure that the system will work properly. Also, further enhancements will be made by the proponents.