BESTLINK COLLEGE OF THE PHILIPPINES

CHAPTER I
INTRODUCTION

Technology has affected society and its surroundings in many ways. It has helped to develop an innovative economies and it allows the rise of certain advancement in terms of systems which can help the businesses to do their daily operations. In other definitions, technology can be most broadly defined as the entities, both material and immaterial, created by the application of mental and physical effort in order to achieve some value. Wherefore, it influence the values of society specially the businesses and organizations which in needs of efficiency in terms of human productivity and business traditional transactions, that needs to develop to meet the advancement and expectations of users. Through this advancement most traditional businesses have the chance to upgrade their system because they use it to handle daily operations, transactions to increase profitability. Management Inventory System is one of tools for organizing inventory data that before was generally stored in hard copy form in spreadsheets and helps to control and balance the flow of incoming and outgoing merchandise but this system is free from human errors thats why the IT experts and programmers have the reasons why they need to develop a system that can secure all the information and operation to avoid losing important data that leads to weaken the businesses in society. This system is integrated with the procurement system which is responsible for making list of the companys supplies and its suppliers. The study is focus on how to develop an advanced management techniques that would surpass or automate the transactions between the purchasing of materials and managing of inventories.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.1 Project Overview The goal of this study is to develop an automated procurement and inventory system. Since, there is already existing system, the proponents conduct a systematic methods by means of gathering data and interview a company which is using the same system. This is an initial step for developing the system which is focused on handling equipments and materials that needs to store using an upgraded inventory system that manage all the transactions and responsible for obtaining products from suppliers. It includes decisions about how much and when to purchase materials and equipments. The system is composed of user-friendly GUI (Graphical Users Interface) that can help the users utilize the functions of the system and to satisfy the demands of the client regarding to the problems of the existing system. This will be a key step in building a strong supply chain and manage an inventory system with the integration of procurement system. With this two, the operations will be improving profitability and helps to maintain a competitive edge among other businesses.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.2 The Problem Domain The current system needs to be examined by the proponents to solve problems. It might be specific or overly bounded. This will be associated with data gathering and systematic approach that leads to develop a system or solutions to solve the problems.

1.2.1

Statement of the problem The proponents conducted a survey to existing inventory system and procurement system. More companies are still using traditional way of purchasing and managing their supplies, some are using Microsoft excel or open software to have electronic storage of their data. The simple system for procurement and inventory system cannot produce accurate data and reports. The data is processed manually when it comes to receiving and forwarding the request to the suppliers same with gathering of request from different departments. However it was stored in databases there is still possibility of data loss because the system was not fully secured. The system is not efficient in processing online transaction which is more useful in all circumstances and conditions. In line with this the process of transaction is slow. The interaction of the user to the system is not convenient thats why incorrect use of multiple quantity keys are being stored and some are not resolving unmarked inventory and supplies. This is due to poor graphical users interface.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.3 Objectives of the Project The systematic method of surveying helps the proponents to identify problems of the system that needs to solve by developing or proposing more automated system that helps to maintain sufficient accounting and understanding of procurement and inventory. The proponents used to develop more automated and upgraded Material Procurement and Inventory System to minimize losses through deterioration, pilferage and damages because of using not organized systematic method for managing supplies. The proposed system used to build a strong supply chain for the organization and continuing partnerships with the suppliers which is focused more in online base operation of procuring supplies for the company. The proponents also provide or design proper organization for inventory management and avoiding duplication in ordering or replenishing stocks and to decide which item to stock and which item to procure on demand. Not only that because the system which will be developed is more convenient for the users because it will compose of more user friendly that allows the users to interact with the system and to facilitate furnishing of data and build a strong database for the inventory. This is to enhance the efficiency and ease of use for the underlying logical design of a stored program and its usability.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.4 Significance and Scope of the Project The significance of the project is that it helps the users lessen their work and increase the productivity of the existing system when it comes to purchasing, monitoring and controlling of materials and equipment on their inventory system.

E-Procurement (Electronic Data Interchange (EDI)) It allows the supplier to receive data from the system. The system will forward the purchase orders to suppliers and also for confirming of orders. Electronic Mail It allows the system to send messages to the suppliers. Both parties will be updated regarding to the terms and conditions of purchased of materials. It also allowed the inventory system to send request from other departments what will be their needed supplies. Inventory Forecasting It is a strategy aimed at providing the availability of the stocks. It gives the report of how many materials that the system needs to sustain the operations and transactions of the company. Quality Management or Control It implies a complete overview and re-evaluation of the specification of product. Materials in the inventory should be under total quality control for safety, and reliability of the materials. Inventory and Procurement Visibility It allows the company to be informed about their inventory to make their supply chain as effective as possible. It supplies immediate and accurate data. Management of Material It is the process by which an organization of material is applied. Tracking of Materials It is the process in which it reduces inventory costs, reduces time to locate and count materials and eliminates unnecessary movement of materials and tools.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.5 Documentation of Existence and Seriousness of the Problem 1.5.1 Documentation of current system/s The system of the company is a manual type of system. They process their transactions manually. They store their records in a filing cabinet and some are stored and inputted using excel.

1.5.2

Problem/s identified with the existing systems The company says that they dont have problem with their manual system but if the proponents proposed an automated system the business process and transaction will be effective and efficient.

1.5.3

Process models of existing systems contributing to the problem The process model of the existing system is that they manually transact with the supplier and they just record the supplies on their record book.

1.5.4

Data models of these existing systems The process of the existing system is they manually counting the received items.

1.5.5

Data (or any form of statistics) that may be relevant to prove the existence and seriousness of the identified problems. The proponents provide interview questions for the clientele/ company to identify the problems with regards to their system.

Material Management Procurement and Inventory System

BESTLINK COLLEGE OF THE PHILIPPINES

1.6 Review of existing Alternatives 1.6.1 Describe of how users/clientele currently cope with the problems. The company doesnt have secured system to maintain the files on the secured database unlike other companies that now using automated systems to make their transactions effective and secured.

1.6.2

Assess the best available resources for addressing the problem. The available resource of the company is that they record their transaction it using excel this is their alternatives but still all transactions are done manually. They received and validate the supplies manually.

1.6.3

Describe how you proposed to take advantage of existing and current best practices in your project. The proponents proposed a system to automate the business transactions of the client/company. The proposed system is Material Management Procurement and Inventory System. With this system there would be a less time for processing the purchased supplies and sending the purchase order to the supplier because the proposed system provides the automation of the process which it will use the electronic mail for sending the request to the suppliers and also to the other departments like Accounting Department and Asset Department.

Material Management Procurement and Inventory System