1.0.

Introduction
Since the beginning of the 21st century, shopping centers have
become an essential part of human life in the Philippines as they have
become in the world. Since their emergence, shopping centers in the
Philippines have incessantly developed, and such a steady development
has recently resulted in growing investments rates in the Metro and
provinces, which has a substantial position with regards to socio-economic
concerns. Due to this fact, several concerns are deeply examined in terms of
socio-economic and physical characteristics of the city, which is suitable for
the establishments of shopping centers. Adding to this point, shopping
centers, which are the big investments for the provinces where they are built
also, affect the economic, sociologic, and spatial conditions of their
environments.
Every business has to deal with some form of transactions. How a
company decides to manage these transactions can be an important factor
in its success. As a business grows, its number of transactions usually grows
as well. Careful planning must be done in order to ensure that transaction
management does not become too complex. Transaction processing system
is a tool that can help growing businesses deal with their increasing number
of transactions.
A transaction processing system (TPS) or transaction server is a software
system,

or

software/hardware

combination,

that

supports

transaction

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processing. It is a type of computer processing that takes place in the

presence of a computer user. It allows for an immediate response to a user
request.

1.1. Background of the Study

The investments of the Kuok Group in the Philippines comprise four (4)
Shangri-La hotels and resorts (Makati Shangri-La, Edsa Shangri-La, ShangriLas Mactan Resort and Spa, Cebu, and Shangri-Las Boracay Resort and Spa)
and Shang Properties, Inc., which is the property development arm of the
group in the Philippines with core businesses in office and retail leasing, and
residential development.
Edsa Shangri-la Manila is a serene city oasis located at one of Manilas
fascinating attractions that is very much noted in history. Rewarded with the
view of a stunning sunset, the hotels lush tropical garden covers a large part
of the hotel property with tranquil greenery. The Shangri-la story started in
Singapore as the first deluxe hotel in 1971. Shangri-la Plaza is one of the
Philippines White Pages hotels that carry international brands such as
contemporary, art deco theme, classic structure of shops, and impeccably
clean ambiance. Shangri-la Plaza never fails to attract anyone who desire to
shop and dine serenely in tranquil ambiance. The peace and quiet blends
well with the diverse shops and restaurants designs. Inspired by the Lost
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Horizon novel of James Hilton in 1933, the land features and design of the
hotel encapsulates the type of service and serenity this hotel has achieved
and made its name worldwide. Today, it is regarded as one of the Philippines
White Pages finest hotel ownership and management corporations.
The shops and malls within Shangrila Plaza provide high-end products
and variety of sophisticated choices such as Hugo Boss, Marks & Spencer,
Anne Kline, or Kamiseta. You can also visit the malls of Cole Haan to Zara,
Crossing, and Rustans, which offers more fashion and clothing choices.
Home decor shops from native or locally manufactured antiques inspire the
display of home accents and furniture department. If you are looking to
change the look of your kitchen, you may find several specialty shops
dealing with different modern to classic designs and types of kitchenware
and decorations. Some shops offer automobile accessories and home theatre
systems.
The process of purchasing starts with any department of Shangri-La Plaza
corporation. The staffs or manager of any department starts to fill out the form
named Purchase Request. It is then approved first by the manager of the
department if the staff is the one who requested for it. But if it's the manager who
made the purchase request, the request is then sent automatically to the
Purchasing department where all requests are being sorted and analyzed for
bidding. Once bidding is done, the purchasing department selects the winner and
gives the purchase order to the supplier of the product that corresponds with the

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purchase request number. The inventory functions as a storage for deliveries and
as a monitor to see what needs to be maintained and requested in the corporation.

Nature of Company: Retail Industry.

1.2. Statement of the Problem

General Problem
How to Improve the Purchasing and Inventory process of Shangri-La
Corporation for the establishment of a more Efficient and Effective Business
Process?
As the requisitioning department demonstrated and illustrated several
key issues affecting the Materials/Supplies Requisition Slip and Purchase
Request transactions in their daily operations, the current manual process

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of Shangri-La Plaza Corporation hinders the establishment of an efficient and

effective business process.
Currently, the requisitioning departments are implementing manual
methods on their everyday transactions with requests. Commonly, the use of
manual process leads to issues regarding to keeping and logging of
important forms. The tendency of misplacing a record has a high probability.
Another factor to consider is the time required to finish a manual process
with all efficiency and effectiveness, low security, minimum file-organization
and the probability of information misinterpretation.

Specific Problems
1.

How to enhance the process of requesting, ordering and

approving designated department interactively?

Currently, all requests, orders and approvals are collected first by the
secretary then it will be sent to the designated department. The time

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required to deliver the request will not be real-time because submission to

designated departments is by batch.
2. How to ensure that the request will reach its proper destination
and to give priority to certain requests?
Since the request comes in a paper form, there is a possibility that it might
be misplaced or sent to the wrong department. Requests will more likely not
be considered according to their priority. This will cause a bad effect to the
effectiveness of the business.
3. How to avoid information misinterpretation?
Since the company uses manual process in ordering requests, there are
possibilities that the written items to be purchased by the department would
be misinterpreted since human penmanship varies differently.
4. How to organize the information on a computer and have a backup of the processes completed.?
Once a request form has already been completed on its process, it is a hassle
to keep and organize the paper forms in a storage or cabinet. No back-up of
data will be available once unexpected happenings occur.

5. How to impose security to forms that needs confidentiality?

Since the system contains confidential information, the forms should be kept
secured. If it will continue to be in a paper form, there is a possibility that
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information will be shared easily since the papers are put into outgoing trays
and can be exposed to any unauthorized personnel.

1.3. Objectives
General Objective
To integrate the purchase and inventory system into a computerized
system.
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The main objective is to develop an Integrated Purchase and Inventory

system for Shangri-La Plaza Corporation in order to become more effective
on purchasing and inventory processes and efficient on professional
procedures such as decision making.
The developers will develop a real-time automated system that will
improve the way how purchase and inventory process is done in Shangri-La
Plaza Corporation. The primary purpose is to provide convenience, higher
processing accuracy and simplification of current practices on a manual
system.

Specific Objective

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1. To develop a module that will process all transactions in the

purchase and inventory system with a real time feature.
Since tasks done with a computer can easily be processed and
received, the developers will be able to transform the current manual
process into a real time processing mode.

2. To automate the purchase and inventory method of Shangri-La

Plaza Corporation for precision and reliability of information.
There will come a time that the company will need the completed
information for reference or for legal purposes. The developers will develop a
system that will aid the company to do tasks with easiness.

3. To computerize information and log all details.

The developers will make a form where a certain personnel can input
requests

and

response

through

the

use

of

computer.

By

this,

misinterpretation will be avoided.

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4. To upgrade to an automated system from a manual system to

promote efficiency.
The developers will design and develop a system that will handle all
the processes in purchasing orders from requisitioning departments. This will
help the company on retrieving the records with ease and will from the
possibility of record loss.

5. To create a security module that will protect all the confidential

records from falsification and theft.
The developers will create a feature that will provide controls for
diverse hierarchies of personnel in the company. This means restrictions will
be enforced to unauthorized personnel.

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1.4. Significance of the Study

To the Company
The proposed study will provide fast and reliable transaction process
ensuring the security of files and it will also enable the user to keep track the
daily operation. Cost of office resources will be minimized.

To Personnel of the Company

The users will be able to provide real time information anytime. Archiving
method will be much easier and accurate.

To Suppliers and Contractors

The clients will be able to acquire information and fast response
regarding to the status of their proposal. Leakage of information about their
bidding result will be confidential.

To Developers
The study of purchase and inventory system can be a learning
paradigm in Software Analysis and Design subject to enhance the
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developers knowledge and entrepreneurial skills as well. The projects goal

is designed to help developers improve academic competence, develop
employability skills, implement a career plan and participate in a career
pathway in preparation for careers in IT industry or services sector after
college graduation. This goal can be achieved through the adviser who
guides

the

developers

in

the

process

of

making

the

system

and

documentation. The output of this study is a source material that can be

used by any purchase and inventory capable company.

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1.5. Scope and Limitation

SCOPE
Purchase Request is a process to notify the purchasing department of
items it needs to order, their quantity, and the time frame that will be given
in the future.
Purchase Request Dashboard is the location where all Purchase Requests
of the Requisitioning Staff goes. It is accessed by every Requisitioning
Manager to review the Purchase Request before it is finally sent to the
Purchasing Department
Purchase Request Status is where the users can see the status of their
Purchase Request. Theres a column made for the Manager and one for the
Purchasing Department. Once the Purchase Request is approved by the
requisitioning manager, it then displays Yes on the managers column and so
as to the Purchasing column.
Purchasing module will provide automated processing of purchase request
of every department giving the projected number stocks needed. This will
also offer the list of participating contractor for the bidding procedure.
View Purchase Request is where all the approved Purchase Requests by
the Requisitioning Department Head goes. It displays the PR number, date
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and time requested and the 2 columns that shows the status of the Purchase
Request made by the Requisitioning Department.
E-Logbook is where all the approved Purchase Requests of the Purchasing
Department goes. Everything recorded here is subject for Pre bidding which
is manually done.
Schedule Pre-bid Conference is where to assign suppliers for the
corresponding Purchase Request.
List of Suppliers is the complete list of the Suppliers for products.
Inventory is the process for managing and locating objects or materials.
View Items is where all the items delivered in the Company goes
MSRS or Materials/Supplies Requisition Slip is a process wherein the
requisitioning department requests the delivery of the delivered product
from the store room to the department requesting for the specific item.
New Purchase Order is where the Purchasing Department orders the
product listed in the Purchase Request to the Suppliers/Contractors.
Settings is made available to the administrator or to the purchasing department
where the user settings, date and time and quantity levels are set.

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LIMITATIONS
Bidding procedure is a process by which the company choses the best
bidder that sells the best product at low cost but not diminishing the product
quality. In addition, module for the bidding procedure will not be included
because it requires human judgment to ensure proper product assessment.
Accounting Module for accounting department will not be included in this
system because we are mainly focusing on the purchasing inventory of the
company.
Economic Order Quantity (EOQ) system that produces Recommended
Purchase Report with option to create purchase orders based on sales history
or budget
Return on investment (ROI) analysis during purchase order entry helps
determine optimal order quantity based on quantity break pricing
Vendor discounts by weights and cubes

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