Chapter II

Review of Related Literature and Studies

Local Literature
Inventory Ordering System by Globe Business Philippines
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Get real-time reports

What the inventory system does is allow you to order supplies based on the most
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more urgent needs.

Cut through red tape

The Inventory Ordering System gives you better control over your supply chain,
affording you the convenience of being able to place orders online or via SMS. And
because the system automatically generates inventory and sales reports, your
employees will have less paperwork to file and more time to focus on operations.
Perfect for businesses with franchise operations, this user-friendly inventory
management system can be customized for any multi-site company, commissary, or
warehouse backend ordering operation.

Features & Benefits

 Registration Module
 Order Management
 Inventory Management
 Sales Management
 Reports Module
 Text Broadcast
Online Sales Monitoring and Inventory System Jan 2011
The problem of the conducted research is about the company’s sales monitoring
and inventory system. Keeping records of sales and inventories manually are the
current method used by the company. Due to this current method of inventory system,
the company has encountered several problems regarding the monitoring and stocks
checking.
KONEK.COM management once said, “Manual method is very hassle and time-
consuming process of inventory. It has many drawbacks as there are many mistakes
while recording large data and it disturb some important transaction sometimes”.
Upon hearing this, the researchers developed a system which will help the
management keep record of inventories in systematic way and help them produce
report about the inventory or stock currently available in their store in automatic way.
Through this the hassle and committing mistakes while recording large data could be
avoided. Also the work of the management and the time consume during inventory will
be minimize.
KONEK.COM is a hardware store located at Mabini St., Molave Zamboanga del
sur. It was owned and managed by Mr. & Mrs. Roy Megapatan. They started at a very
small scale business selling cell phone accessories. But because of the company’s
dedication for hard work and determination to rise among others, the very small
hardware store becomes one of those who are trusted when it comes to supplying
electronic devices such as computers, computer accessories, cell phones, cell phone
accessories, flash drives and etc. in its community.
Today KONEK.COM, having three branches with in the municipality, boasts its
tag as one of its community’s leading hardware store.
Sales and Inventory System by eahm05, Jan 2013
Computerize sales and inventory system
Computers began from a wild imaginative idea to the world’s highly prioritized
tool. Computers today are now used as a substitute to manual processes and other past
inventions like the radio, television, etc. It is now used by people for much simpler,
easier and faster way to do things. Some used it as a hobby, and some use it as a job.
Technology has never stopped from advancing through the years. Its new
innovations helps answer the people’s further complex questions. Why not use these
advantages to benefit ourselves?
Many people use computers in their daily lives. Some use it for transactions,
some use it for educational purposes and others use it for data storage. Though it might
sound unnecessary but in some cases when storing a file for such a big company, can
you manage it properly? Organizing, finding a file, etc. With computers, it can help you
simplify the process of storing and managing the files you need for future use and make
finding files easier than the manual process.

A Proposed Sales and Inventory System

In business like merchandising, Sales and Inventory system plays an important
role. It is used to track all the transactions made by the business and responsible for
monitoring the items supplies. All the business transactions must be properly recorded
and must be fully secured by password. A Computerized system is the best solution and
most innovative answer for their needs.
The researchers had been motivated to do a study on this topic according to the
above observation. The result may help others to understand more about computer-
generated data processing, especially on how to deal with computers in terms of speed,
accuracy and data security. Monitoring the transactions and other significant information
regarding the customer is the main concern of this study
Foreign Literature
Sales & Inventory Monitoring Systems by Audra Bianca, Demand Media
Data Collection for Decision-Making
Using this type of system, a company makes strategic business decisions
regarding raw material purchases, production scheduling, pricing, logistics and other
decisions in the supply chain. Sales and inventory data enables the company to
increase or decrease production in the factory so the company won't have too many
finished goods stored in its warehouses.
Function
A sales and inventory monitoring system collects data to aid in production
scheduling. For example, some systems use recent sales data to forecast how many of
a type of product will be needed to meet consumer demand in the near future. This
includes monitoring the levels of a product at all locations. A good example is a global
company with customers all over the world. The customer may live in Japan, but the
system must see if the warehouse in Canada has a product available to ship to Japan.
How it Works
The system compares current inventory levels of a product and the number
scheduled for production with the number needed, and determines if the level of
production must be changed. If necessary, the system sends a message to the master
production schedule to increase production. Also, the inventory monitoring system
slows down production when a product's retail sales levels don't meet the sales forecast
and the company overproduces the product.
Competitive Advantage
Automated sales and inventory monitoring gives a company a competitive advantage by
linking different automated processes within the supply chain. For example, automating
the ordering process for customers and the production scheduling, then adjusting
manufacturing based on up-to-date inventory levels, makes a company more flexible,
capable of deciding how to best satisfy customer orders. When automated activities are
linked -- ensuring information flows rapidly from one part of the supply chain to another
-- a company can exploit these linkages. Management can make rapid decisions to
increase revenues, such as ramping up production immediately in one location because
of a sudden surge in demand in another part of the world
SALES MONITORING SYSTEM by Celkon Mobiles
Celkon is one of leading manufacturing companies in India. We have pioneered
mobile phone solutions and wireless technologies in India. Celkon caters to the
increasing smart needs of mobile users across the world.
Our forte lies in providing innovative mobile technology to every customer. At
Celkon, we believe every user needs an experience more personalized than ever. We
are dedicated towards manufacturing customized user friendly phones. Our value
added features ensure the personality of the phone matches the taste of the user
The wide range of products available at Celkon ensures that there is a phone for
every pocket. Every Celkon product undergoes stringent quality tests at every stage of
production. Our main focus is to excel and provide the user with best designs paired
with unmatched technology.

Monitoring Sales for Accountability by Sales Creator

Measuring Sales Performance
Most companies have the problem of measuring the performance of their sales
staff because each salesperson is different and they work in varied methods. Because a
sale involves customers, there are other factors impacting sales, as well. Customers
and their needs are different, business conditions vary, individual customer bases differ
and the product mix offered to each customer can vary. What are the important
components to track to determine sales success? The factors can be tangible and
intangible. When examining the tangible side of the sales ledger you need to consider
methods for targeting, frequency of contact, message and presentation, and
communications. Some intangible factors that can be difficult to quantify are the
salesperson's ability to build relationships and "connect" with customers, and whether or
not there is a clear purpose of the call or meeting. The reason for contact can be to help
the customer, or sometimes it is to help the salesperson's quota.
Effective results from measuring the performance of each salesperson should
have a purpose: to help them be more profitable to your company. When this occurs
they have more worth through additional pay and incentives, and they receive a value,
and that is a good feeling about doing a great job. There are three steps in bringing
about the improvement of an employee when a problem is identified: measuring,
correcting with training, and planning to make the change permanent.
Measuring the Performance
The ability to measure performance depends on the use of success-based
criteria as a model to compare daily, weekly and monthly numbers. Here are some of
the criteria that Sales Creators uses when designing a monitoring system for their
customers:
1. Time spent selling, time spent in administration, time prospecting
2. Number of calls made on existing accounts
3. Number of calls made to new customers, and number of new customers
4. Promptness in submitting reports and sales orders and accuracy of reports
5. Volume of sales, number, size, product mix and repeat account
6. Accuracy in quoting prices and delivery information with approved margins to
customer
7. Method of call backs set up with the customer
8. Cost of customer to company
9. Marketing and promotional time, specific areas
10. Improvement areas where time is being invested on the part of the salesperson
and management; this includes topics such as behavior modification,
appearance, schooling and other personal issues
Measuring must start with standards that are compiled from the averages of all
employees who are doing the same task. Then review the progress for the last 12
months and determine how it compares to the budget compliance standards. If the
performance levels do not meet the basic standards set by the company, or if their
performance falls more than 10 percent from last year's numbers then it is time to move
into a corrective step of action.
Training and Process for Correction
This is a positive step for improvement and it starts with management
reevaluating the sale sand marketing systems. Is there a need to increase promotional
campaigns, change or add prospecting methods, establish tighter controls with price
variances, or get input to problems from the sales staff? Management's first duty means
time spent working on fixing the systems; then it is time to provide help for the
salesperson. They should have daily direction and support, be provided with proper
coaching by role-playing on specific areas of weakness found in the 'measuring
performance' section. Make mentoring time available with best salesperson and the
salesperson that needs help and have them observe and listen to their instructor. Daily
progress must be recognized and acknowledged until the problem is resolved by
noticeable improvement in a given area.
Planning for a Positive Change
Once a problem has been found, management must help get it corrected. Once it
has been corrected it is time to outline an agreement to reach the stated goals. Planning
in its final form should be in writing with the steps needed to reach the final destination.
Then the time must be
 allotted to put management's system changes into effect by introducing them to
the employees at a meeting.

Local Studies
According to Distors (2007), in her study Sales Monitoring System, the
accelerated work structure of the company proper monitoring is essential in order to
keep track of the company’s sales activities. Her system aims to come up with an
efficient, and accurate mechanized system of preparing invoices that will keep track of
the daily transaction and generate reports. Important information will be provided by
this studying order to prove that the computerization of the company’s operation and
achieve a more reliable and efficient means of monitoring day to day activities. Her
system focuses on the analysis and design of the sales monitoring system which will
monitor the stacks inventory of the sales departments. This system of hers is
somewhat related to our study but our system focuses more on the inventory monitoring
system of a trading company.
As a stated at the book of Passion (2004), to improve their efficiency and reduce
their cost of operation. Reports are more timely and accurate. Computers have a large
capacity to store data and tremendous speed to manipulate and recall data to the
format a user wished to use which introduction of microcomputer computation of
business is more affordable.
Lewis (2002), stated that: the reason for using computers vary from person to
person. Some of the computers in business are to perform accuracy, to be as
productivity, to decrease bottle necks or hassles, to alter cash flows, or to simply
elevate your status.
According to Sybex Inc (2000), visual basic provides a graphical environment in
which the users usually designed the forms and control that become the building block
of tour application. Visual Basic support many useful tools that will help the user to be
more productive. The hardware of a POS system is also distinctive and important. A
typical system includes a display screen for the clerk, a customer display, a cash
drawer, a credit card swiping system, a printer, and a bar code scanner, along with the
computer loaded with the POS software. Custom features may be added or removed,
depending on the industry. A restaurant POS system, for example, may have a feature
which prints order tickets directly in the kitchen, or a grocery store may have an
integrated scale for weighing goods.
Foreign Studies
Sales and Inventory System by jamjam123456, Mar 2011
According to the U.S. Small Business Administration, “Inventory refers to stocks
of anything necessary to do business” (U.S. Small Business Administration, 2010). The
U.S. Small Business Administration publication describes what constitutes successful
inventory management (balancing cost versus benefits of inventory), including;
1) Maintaining a wide assortment without spreading the rapidly moving items too
thin,
2) Increasing inventory turnover without sacrificing service,
3) Keeping stock low without sacrificing performance,
4) Obtaining lower prices by making volume purchases,
5) Maintaining an adequate inventory without an excess of obsolete items.
Anyone in business must understand the business of inventory. Below is a look
at six different inventory systems as well as a comparison of the advantages and
disadvantages.
Wal-Mart Inventory System
Wal-Mart runs its stores on a perpetual inventory system. This system records
the quantity of items sold as items are purchased. The computer system at Wal-Mart
constantly keeps up with additions or deductions from inventory and tells management
what items are on hand. The organization also conducts counts of employee manual
counts of inventory periodically. When an item arrives at the Wal-Mart distribution centre
it is scanned into the inventory system. When the items are purchased by the
consumer, the point-of-sale system reduces the inventory from that purchase.
According to Wal-Mart’s Gail Lavielle, a leaner inventory will help clear out store clutter
and help Wal-Mart focus on specific brands and products that consumers want (The
Associated Press, 2006).
Advantages and Disadvantages of the Wal-Mart Inventory System
The advantages of a perpetual inventory system are that inventory is quickly
updated in realtime, which gives a constant picture of the inventory status.
US PubMed.gov Automating the purchasing and inventory control functions.
Factors involved in computerizing the purchasing and inventory control functions
in hospital pharmacies are described. When initiating an automated purchasing and
inventory control system, a feasibility study should first be conducted to determine the
extent of automation needed to develop a cost-effective system. The design of the
system will depend on the extent to which the department of materials management is
involved with other hospital departments. The advantages and disadvantages of
decentralized versus centralized systems are discussed, and criteria for selecting
hardware and software vendors are presented. A return-on-investment analysis should
be performed to validate the benefits or savings expected from implementing the new
automated system. Factors to consider during implementation of the new system and
future developments affecting purchasing and inventory control systems, such as bar
coding, are discussed. With the current concern about rapidly rising health-care costs
enhance productivity, the development and implementation of automated purchasing
and inventory control systems are important strategies for institutions to pursue now

CISS (Computer Inventory System Specialists Ltd.) Purchase Order Management

Inventory Pro's Purchasing System allows you to order, track, and receive both
inventory items and assets. It also provides the ability to browse purchase orders, list
currently outstanding purchase orders, and generate reports based on purchase orders.
Like most parts of Inventory Pro, the Purchasing System can be customized with logos,
messages, fields, and terms to adapt it to your specific business.
Purchase Assets or Inventory Items
 Purchase Order Approvals
 Delivery Schedule (Blanket PO's)
 Inbound Appointment Scheduling
 Supplier's Catalogue
 Supplier History
 Term Agreement (Supplier Contracts)
 Automatic Generation of Purchase Orders
 Accounting Software Integration
 Cost History of Purchased Items
 Receiving (Partials and Complete Orders)
 Reporting
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