STRATEGIC SYSTEM ANALYSIS:

POINT OF SALE SYSTEM BY

RDF BICYCLE PARTS
By: Marfelle Czarina H. Sayoc
Kristine Ann T. Policarpio
Johan Palattao
Jenny M. Tejero
INTRODUCTION:
BACKGROUND OF THE STUDY
 The firm’s competitive advantage is not only affected by the environment,
but also depends on competitive strategy it involved. The competition
strategy is the strategic choice that can influence firm’s performance (Yan,
S., 2010). Small firms should use innovation strategy to obtain competitive
advantage in rapidly changing environment.
 This study is conducted to determine the different business strategic
objectives through integration of information systems and to analyze the
business’s existing system if there is.
INTRODUCTION:
BACKGROUND OF THE STUDY
 Before application software and information systems software came into
existent, the commonly used practice in businesses was the manual
system. Manual systems in sales and inventory encounters a lot of
problems due to physical counting of the inventory items on a frequent
basis which are time consuming, as the business owner must keep track of
inventory sales on a daily basis, while updating the system manually at the
end of the day. As stated by Ravi (2010), manual sales systems are time
consuming, very tedious, has lots of paper works, slow data processing,
not user-friendly environment and it is difficult to find records due file
management system.
INTRODUCTION:
BACKGROUND OF THE STUDY
 Manual Cash Registers are difficult to maintain. It is time consuming
in processing payments, tracking sales, inventory and customer data
because the calculations of sales total and printing receipts takes time
to be done. Every transaction between the customer and owner are
manually written one by one and most of the time, due to time
constraints, employees doesn’t write the full list of goods sold or the
details of the individual items as well as the taxes of each. As
technology improved each year, Cash Registers can be customized
and easy to operate.
INTRODUCTION:
BACKGROUND OF THE STUDY
 The RDF Bicycle Parts is a small store managed by Mrs. Raquel F. Uy and
Mr. Richmond Uy. The business sells different items or products like full
framed bikes, frames only, seat post, handle bar and different bike
accessories. Like other stores, the business owner used to do physical
counting of stocks manually which may cause loss of documents and work
redundantly. A manual inventory system relies heavily on the actions of
their employees, which increases the possibility of human error.
Sometimes, they forget to record a transaction or simply miscount the
number of goods. This results in needless additional orders that increase
the store’s inventory carrying costs and use up precious storage space.
INTRODUCTION:
BACKGROUND OF THE STUDY
 RDF Bicycle Parts’ primary business objective is Operational
excellence. The store currently has a POS system in which they can
easily monitor inventory and sales, hence, there is efficiency of
their operations.
 New products, services and business model is also one of the
priority of the store, being one of the establishment that sells
quality and new collections of products in the market.
INTRODUCTION:
BACKGROUND OF THE STUDY
 Improve Decision Making, with the use of their existing system which can project sales and
inventories in real time; the owners can choose suppliers with the lowest quote thus increasing
their profit.
 With all these three (3) business objectives, the store projects competitive advantage by
offering products that are high-end but at low cost compared to their competitors in the
locality.
 However, customer intimacy is one of their weak points, as their current practice is that they
only get the customers information after atleast 5 purhases, thereby, there is no established
customer relations management.
INTRODUCTION:
BACKGROUND OF THE STUDY
 Inaccurate physical counts could also result in not ordering enough of a
product, meaning the business could run out of a crucial item at the wrong
time. Also, manual monitoring can be highly labor-intensive to operate due
to continuous monitoring to ensure that each transaction is accounted for
and that products are maintained at the appropriate stocking levels. It is
also more difficult to share inventory information since the business has 2
branches, one in Cauayan, Isabela which is the main branch and another
sub-branch in Tuguegarao City. With these inconveniences, the owners
decided to purchased and launched a software for inventory and
monitoring of goods three months ago. The system that they currently have
is a Point of Sale system customized primarily for their store.
INTRODUCTION:
BACKGROUND OF THE STUDY
 A point of sale inventory management system allows a business owner to
have more than one business location and adequately keep track of
inventory at each without being present. No more worries about employee
theft or pricing inconsistency between one location and another. The boss
can be away and not worry about employee theft. Employee efficiency can
be maintained. Point of sale systems take care of those problems that
result when management isn't present.
INTRODUCTION:
BACKGROUND OF THE STUDY
 Point of Sale System (POS), is an automatized sales software in which the person in
charge input products, tally the cost and conduct the financial transaction. With this,
you can track your inventory, automatically create order list and know all there is to
know about your customers and therefore, your business. In this system, RDF Bicycle
Parts inputs inventory of stocks by generating barcodes of each item, scans the
barcode with the barcode scanner attached to the desktop where the POS is installed.
If there is a purchase, the staff prepares a sales invoice and then scans the item which
the client choose to buy and then it will automatically be deducted to the stocks
recorded in the POS and will reflect to the generated sales report. If a buyer
accumulates 5 purchases, the staff considers the him/her as a regular customer,
hence, important details like personal information will be encoded in the system.
INTRODUCTION:
BACKGROUND OF THE STUDY
 However, since the system is new, there are lapses that the researchers
discovered. Hence, during the interview, the researchers proposed ways to
modernized or upgrade the current system of the business owners. The
design aims to save time and eliminate data duplication and increase
efficiency. The point of sale system that they are currently using while
managing inventory of their stocks, it also provide customer details who are
regularly purchasing from their store, in order to make better customer
relationship management (CRM) services, the researcher also
recommends a discount system integrated which monitors points
accumulated based on how frequent the customer purchase and the
amount of purchase the customer already has.
INTRODUCTION:
BACKGROUND OF THE STUDY
 This will allow the owners to track and manage your inventory in real time,
allowing them to monitor the sales records with numbers of items remain in
stock easily and alert them when stock is running low in order for them to
order quickly the items needed. It will also allow the owner to see the
transactions of both branches even when not in the store themselves. The
system will as well calculate and automatically provide a receipt to the
customers to ease the job of the owner.
INTRODUCTION:
STATEMENT OF THE PROBLEM
Inaccurate financial report – due to incomplete tabs for operational
expenses in their information system.
Manual preparation of purchase order – system only focuses on the
inventory and sales monitoring.
Manual issuing of receipt – the issuing of receipt is slow especially when
the customer buys multiple products.
Inability to access sales and transactions when not within business
premises – the current system they are using is a software and is not web-
based.
INTRODUCTION:
OBJECTIVES OF THE STUDY
 Point of Sale systems seek to automate as much of a retailer's financial
processes as possible.
 By increasing information reporting accuracy, retailers gain smoother
operations and better information on which to make crucial business
decisions.
 By reducing the labor hours required to gather such information, retailers
can reduce the cost associated with record keeping and information
collection.
 Costs are further reduced because retailers have more current information
on buying trends and inventory levels, as well as increased accuracy in
regard to the prices charged to customers.
INTRODUCTION:
GENERAL OBJECTIVES
 Upgrade the current computerized Point of Sale System that will help
RDF Bicycle Parts in processing and monitoring their daily
transactions more efficiently and accurately.
INTRODUCTION:
SPECIFIC OBJECTIVES
Create a module that can add and maintain records of available products.
The proposed system has a module that is intended for adding and
maintaining records of available products and automatic generation of
purchase order.
Create a web based system for the customers to order online, make
payments through credit cards or banks, have their orders delivered and
tracked online. This will create customer intimacy and increase the store’s
competitive advantage.
Upgrade the system to web based platform for the administrators to
access and monitor the transactions even outside business premises.
INTRODUCTION:
SPECIFIC OBJECTIVES
Create a system that has security mechanisms. The proposed system is
protected with username-password verification of administrators,
employees, and customers to prevent all unwanted usage and illegal
access of files in the system. This will help in securing all important and
confidential records of the company and its customers.
Upgrade the system to generate an accurate and more detailed sales
report, inventory report and other expenses. Moreover, a simple tabulated
list will be generated for easier understanding of income and operating
expenses for proper business planning.
INTRODUCTION:
SPECIFIC OBJECTIVES
Create a system that can automatically generate a receipt to the
customer. A more detailed invoice of how much the items are
individually and the taxes for each.
Create a system that can collect points though the items
purchased by the customers. The proposed system will help the
company maintain customers and will allow these them to get
future discounts from the items they currently purchased.
METHODOLOGY

 In order to gain more insight on how RDF Bicycle Parts runs its business, semi-structured interview was
conducted to the owner of the business. Unstructured interview was done so that the owner could provide a
more in depth answers which is based on his understanding, perception and motivation towards the
business. The interview was conducted in the business premises of RDF Bicycle Parts which is located at
Bonifacio Street, Centro 4, Tuguegarao City, Cagayan. The interview was done for 2 consecutive days, in
line on the schedule of the business owner. Interview lasted for 2 hours on the first day and approximately
3 hours on the second day. The team opted to take notes on every answer that the business owner said.

 In the formulation of recommendations for the business, the team looked into the value of the company.
The team opted to use the Value Chain Analysis to further review what the business needs in gaining
competitive advantage in the market.
RESULTS AND
DISCUSSION
 POINT OF SALE SYSTEM: Purchase
EMPLOYEE LOG-IN

SCAN BAR CODE

Analyze input

Product Information
(Name of Product +
Number of product
available

Enter quantity ro be
purchased

Less on inventory Add on sales

 Notifies the owner if
inventory is low Generates sales report
Enter customer Data
(daily, weekly, or
monthly)
Suppliers of items
needed pops up with Generates Receipt
details of prices ranging
from lowest to highest System accumulates
points corresponding to
the current purchase
Generate purchase order
REVIEW OF RELATED LITERATURE AND STUDIES
Foreign Related Literature
 Cashman stated in her book “System Analysis and Design”,(2011) that transaction processing system data generated by day-to-day business operations.
Transaction processing are efficient because they process a set of transaction related commands as a group rather than individually to protect data integrity
however, TP systems ensure that if any single element of a transaction fails, the system does not process the next transaction.
 https://www.academia.edu/35565286/Kendal_-_System_Analysis_and_Design_8th_Edition_-_2011.pdf

 Inventory management systems were created to help dealerships implement, maintain, and fine-tune their inventory plans. Dealers who use inventory
management systems realize quicker vehicle turns and a higher ROI than dealers that don’t. Choosing the right system can make a significant contribution to
your inventory management efforts. This strategy helps a lot to come up with a successful outcome. (Zierden, 2009).
 http://www.asapsystems.com/inventory-management-system.php

 According to the article of “Paperless Receipt Solution (PRS) System”, by James Dyson Foundation (2015), Configure One’s Web-based E-Catalogue
software called Concept E-Catalogue, is easy to implement and easy to use. Designed for both B2B (business to business) and B2C (business to consumer)
operations, it fully integrates with Configure One’s configurator and CPQ software. The combined solution of Concept E-Catalogue, Concept E-Commerce,
and Concept Enterprise Product Configurator provides you with a complete storefront solution that drives incremental revenue for your company. Featuring
extensive content management tools, the E-Catalogue software may be administered and maintained without programming skills, freeing up your IT team.
 https://commons.clarku.edu/cgi/viewcontent.cgi?article=1002&context=sps_masters_papers

 Based on Brigman (2007), Fundamentals of Financial Management, 5 th ed., companies are increasingly employing Inventory System. A computer start with
an inventory counts in memory. Withdrawals are recorded by the computer as they are made, and the inventory balance is the constantly revised. When the
recorded point is reached, the computer automatically places an order, when this new order is received, the recorded balance is increased. Retail stores have
carried this system quite far, each item has a magnetic codes, and as on item is checked out, it passes over an electronic reader, which then adjusts the
computers inventory balance, at the same time the price is fed to cash register tape. When the balance drops to the recorder point, an order is place. The
proponent aim to develop an automated inventory system which is technically, operationally, and economically. The method used by the proponent to develop
an automated inventory system is Descriptive Method. The proponent conduct several interviews in order to gather information about the present existing
conditions of the inventory systems, knowing its problems and enhancing it by developing an automated inventory system. Questionnaires were also
distributed to all interviewees for additional information. Using the descriptive method, the proponent also observe the functionality of the present inventory
system, which help them to discover that Electronic Data Processing is Advantageous than other (Isn’t this part of the Data Gathering Procedure?).
 https://www.academia.edu/30940553/
REVIEW OF RELATED LITERATURE AND STUDIES
Local Related Literature
 “Inventory System for Best Choice Rice Dealer”by Bisagas, Arivada, and Tanteo (2009). The process of counting the sacks of rice is done manually, which
corresponds to difficulty in tallying the number of available stocks and sold items.The Manual generation of inventory reports such as daily, weekly, quarterly
and annual inventory list of records remains as one of their key problem since the establishment of the business. The transaction processing system for Best
Choice Rice Dealer will minimize the difficulty the owner in processing inventory. It will monitor the availability of product items for reorder to prevent
under stocking, overstocking or running out of stocks. The system will also generate necessary reports of inventory such as sales reports.
 https://blablawriting.com/inventory-system-for-best-choice-rice-dealer-essay

 In the study from Averion, Gaela, and Libo (2009) entitled “Monitoring and Inventory for discovery Mall.com”, it stated that:

 “It will minimize the difficulty of the manager in processing inventory because physical counting products, stocks and computing inventory summary
will be the system job. It will monitor the availability of products, items to prevent under stocking, over stocking and running out of stocks. The system will
also simplify the transaction between dealer and supplier relationship because of the updated supplier information and price list of items will correspond to
collaboration with other supplier.”
 https://www.studymode.com/essays/Local-Literature-1873998.html

 An article from the PHILIPPINE E-JOURNALS vol. 3 page 1 (2012) by Advancing Information Technology Research entitled “Sales and Inventory System
of Edmar Marketing” Edmar Marketing currently does its sales and inventory manually. As such, it takes time to locate certain files for reports and the entries
in the monitoring sheet are not clear, thus, creating confusion. The project is an automated Sales and Inventory System which has an array of functions
involving sales and inventory that can be of very big help to the company. It aims to make files updated and easy to locate, hence, data and information
become accurate and orderly which may provide a faster alternative or means in doing the inventory. The system inventory may also be harder to cheat
because the coming in and going out of stocks are recorded in the system. The warehouse personnel is more accurate in their reports and can save more time
by using the system. Since the system user has saved time, the personnel in-charge can then be more productive in terms of output which can be beneficial to
the company.
 https://ejournals.ph/article.php?id=5528