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Web-Based Inventory Management with PoS

System and Customer Order Display for


Cultivate

This Capstone Project Presented to the Faculty of the College Computer Studies
AMA Computer College - Tarlac

In Partial Fulfillment of the Requirements of the Degree of


Bachelor of Science in Information Technology (BSIT)

By

Raphael Engay

Leander Mars Cardinoza

Kathlene Ann Grace S. Natividad

December 2022
AMA Computer Colleges
IT Capstone Project 2023

CHAPTER 1

INTRODUCTION

In today's rapidly evolving business landscape, technology has become an essential

tool for enhancing production and efficiency. However, in some regions, the adoption of

technology has been relatively slow, particularly among "ukay-ukay" establishments in

the Philippines. These thrift stores offer reasonably priced used products imported from

North America and Europe, catering to a diverse clientele seeking affordable yet quality

items.

Among these "ukay-ukay" stores is Cultivate, situated in Tarlac City. While Cultivate

strives to provide a wide range of products at attractive prices, it faces challenges in

efficiently tracking sales and managing inventory. The reliance on manual processes

leads to labor-intensive operations and poses risks of data loss, hindering the store's

overall productivity. Furthermore, the absence of a robust receipt production mechanism

complicates transactions, especially in a bustling mall setting where accuracy is

paramount.

Recognizing the need to modernize operations and capitalize on technology's potential,

this project aims to develop a customized point-of-sale (POS) application tailored

specifically for Cultivate. The POS system will revolutionize the store's operations by

simplifying inventory control, streamlining sales monitoring, and providing a user-friendly

interface for managers and employees.

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In this chapter, the researchers presented a comprehensive background of the project,

shedding light on the importance of technology in enhancing business processes. They

delve into the unique challenges faced by "ukay-ukay" retailers like Cultivate, paving the

way for a deeper understanding of the significance of this endeavor. Furthermore, the

researchers outlined the specific objectives of the study, justified by the necessity for a

modernized approach, and define key terms and concepts essential for grasping the

scope and implications of the thesis.

Through this introduction, they set the stage for a comprehensive exploration of the

project's background and purpose, laying the foundation for a robust and efficient POS

system that will elevate Cultivate's operations and customer experience. The

subsequent chapters will delve into the technical aspects, cost-benefit analysis,

methodology, and recommendations for successful implementation, ultimately

showcasing how technology can revolutionize the "ukay-ukay" retail sector in the

Philippines.

1.1. Project Contexts.

The retail industry in the Philippines has witnessed significant growth in recent years,

with various establishments catering to the diverse needs of consumers. Among these

retail businesses are the "ukay-ukay" stores, which offer an array of affordable, second-

hand products imported from North America and Europe. One such store is Cultivate,

located in Tarlac City.

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Cultivate has been a prominent player in the local "ukay-ukay" retail market, providing

customers with access to a wide range of quality pre-loved items at reasonable prices.

However, as the retail landscape evolves and competition intensifies, Cultivate faces

mounting challenges in maintaining its competitive edge. The existing manual approach

to sales tracking and inventory management has proven to be labor-intensive, leading

to inefficiencies and a heightened risk of data loss. Moreover, the absence of a robust

receipt production mechanism hampers the store's ability to provide accurate and

efficient transactions, particularly in a bustling mall environment.

Considering these challenges, the implementation of a modernized point-of-sale (POS)

system becomes imperative for Cultivate's sustainability and growth. A customized POS

application tailored explicitly for the unique needs of Cultivate can revolutionize its

operations, streamline processes, and enhance overall customer experience. By

leveraging technology to simplify inventory control, sales monitoring, and receipt

generation, Cultivate can address its current limitations and position itself as a forward-

thinking and customer-centric retail establishment.

The urgency of this project lies in the increasing demand from consumers for a

seamless and efficient shopping experience. To meet these demands, Cultivate must

adopt technological solutions that optimize its operations and enhance customer

satisfaction. The development of a customized POS system for Cultivate aligns perfectly

with this objective, as it promises to provide real-time data, accurate transactions, and

improved reporting and analytics.

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Furthermore, the successful implementation of this project has the potential to serve as

a model for other "ukay-ukay" establishments in the Philippines, demonstrating the

benefits of technology adoption in the retail sector. By showcasing the positive impact of

a tailored POS application, this project can encourage other thrift stores to embrace

digital transformation, ultimately contributing to the modernization of the "ukay-ukay"

industry.

The project's context revolves around the urgent need for Cultivate to embrace

technology and implement a customized POS system. The system addressed the

existing challenges faced by the store, increase operational efficiency, and enhance

customer service. Additionally, this project holds the potential to set a precedent for

other "ukay-ukay" retailers, fostering a culture of technological advancement and

improved retail experiences in the Philippines.

1.2. Purpose and Description

1.2.1. Purpose

The purpose of this project is to develop a customized point-of-sale (POS) system for

Cultivate, a prominent "ukay-ukay" store located in Tarlac City, Philippines. The POS

system aims to modernize and optimize the store's retail operations, addressing current

challenges in sales tracking, inventory management, and receipt generation. By

leveraging technology, this project seeks to enhance efficiency, accuracy, and customer

service, positioning Cultivate as a competitive and customer-centric retail establishment

in the dynamic Philippine market.

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1.2.2. Description

The "ukay-ukay" retail sector in the Philippines has gained popularity for offering

affordable and high-quality second-hand products from international sources. However,

Cultivate, like many other "ukay-ukay" stores, faces operational inefficiencies due to its

reliance on manual processes for sales and inventory management. This has led to

increased labor intensity and a higher risk of data loss, hindering the store's ability to

meet customer demands effectively. Additionally, the absence of a robust receipt

production mechanism poses challenges in providing accurate and efficient

transactions, particularly in a bustling mall setting.

To address these challenges, the project designed and implemented a tailored POS

system for Cultivate. The POS system simplifies inventory control, sales tracking, and

receipt generation, streamlining the store's operations and mitigating the risk of data

loss. Through real-time data management and accurate transactions, Cultivate

improved overall efficiency, reduce processing time, and enhance the customer

shopping experience.

By adopting this modern technology, Cultivate optimized its retail operations, providing

customers with a seamless and efficient shopping experience. The POS system

enabled the store's management to make data-driven decisions based on

comprehensive reports and analytics, leading to better inventory management,

improved sales strategies, and increased profitability.

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Moreover, the successful implementation of this served as a role model for other "ukay-

ukay" retailers in the Philippines. By showcasing the positive impact of technology

adoption, this project can encourage other thrift stores to embrace digital

transformation, ultimately contributing to the modernization and growth of the "ukay-

ukay" industry.

The purpose of this project is to develop a customized POS system that addresses the

specific needs and challenges of Cultivate. The system modernized and optimized the

store's operations, leading to increased efficiency, accuracy, and customer satisfaction.

By leveraging technology, Cultivate aims to elevate its position as a competitive and

customer-centric "ukay-ukay" store in the thriving retail landscape of the Philippines.

1.3. Objective of the Study

1.3.1. General Objective

The objective of this study is to design, develop, and implement a customized point-of-

sale (POS) system for Cultivate, a prominent "ukay-ukay" store in Tarlac City,

Philippines to enhance store efficiency and simplify transactions.

1.3.2. Specific Objective

1.3.2.1. To design and develop a Dashboard Module for the Administrator that provides

a user-friendly interface to access real-time information on store performance, inventory

levels, and sales data. The module should allow the Administrator to monitor key

metrics and make informed decisions to optimize store operations.

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1.3.2.2. To create a Point-of-Sale Module for both the Administrator and Cashier roles

that enables seamless and efficient sales transactions. The module should support

manual data input and barcode scanning technology to ensure accuracy and speed

during the checkout process.

1.3.2.3. To create a Customer Order Display Module that allows users to view the items

being purchased, individual item prices, and the total transaction amount in real-time.

This module aims to enhance transaction transparency, improve customer awareness,

and facilitate a smoother checkout process.

1.3.2.4. To implement an Inventory Module that empowers the Administrator to manage

products effectively. The module should allow the Administrator to add, edit, and delete

product details, ensuring that the store's inventory is up-to-date and accurately reflects

available stock.

1.3.2.5. To incorporate a Report Module that generates comprehensive reports for the

Administrator. The module should offer the ability to view sales and inventory data on a

daily, weekly, and monthly basis, enabling the Administrator to analyze trends and

make data-driven decisions to improve store performance.

1.3.2.6. To customize the POS system to suit the specific requirements and needs of

Cultivate as a "ukay-ukay" store. The system should be tailored to address the unique

challenges faced by the store and cater to its particular workflow and operations.

1.3.2.7. To deploy the POS system successfully in Cultivate's store environment and

ensure a smooth transition from manual processes to computerized operations. The

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deployment process should be carefully managed to minimize disruptions and facilitate

a seamless integration of the POS system into the store's daily operations.

1.4. Significance of the Study.

The significance of this research lies in its potential to address the challenges faced by

"ukay-ukay" businesses, with a specific focus on Cultivate, a boutique shop in Tarlac

City, the Philippines. Despite the increasing importance of technology in enhancing

corporate productivity and efficiency, many businesses in the country, particularly "ukay-

ukay" stores, still rely on manual processes for their daily operations. Through this

study, Cultivate have the opportunity to overcome these obstacles and enhance both

their overall efficiency and customer service.

The development of a customized POS application for Cultivate had a profound impact

on the company's operations and the "ukay-ukay" market in the Philippines. Cultivate

stands to benefit from increased productivity, streamlined transactions, improved

inventory management, elevated customer service, and user-friendly management tools

through the adoption of technology and streamlining of their business processes.

Furthermore, this research will serve as a model for other "ukay-ukay" firms and similar

small and medium-sized enterprises, encouraging the adoption of technology to boost

productivity and foster economic growth in the Philippine economy.

1.4.1. The Researchers

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This study contributed to the researchers' knowledge and skills in programming,

providing them with valuable hands-on experience in creating a system tailored to the

specific needs of a business. The researchers gained insights into the real-world

challenges faced by "ukay-ukay" establishments and will have the opportunity to

develop innovative solutions to address these challenges. This experience will enhance

their expertise in software development and equip them with practical skills that can be

applied in future projects and research endeavors.

1.4.2. The Store Owner

The developed POS system will empower the store owner to manage Cultivate more

efficiently by effectively tracking inventory and streamlining daily operations. With

features such as barcode scanning and web-based inventory management, the store

owner will be able to optimize stock levels, reduce manual paperwork, and gain real-

time insights into sales trends. This enhanced efficiency will enable the store owner to

focus on strategic decision-making and improve overall business performance.

1.4.3. The Customers

Customers will also benefit significantly from the POS system as it will enable Cultivate

to provide official receipts for their purchases, making returns and exchanges more

convenient. The streamlined checkout process will lead to faster transactions, improving

the overall shopping experience for customers. Additionally, the POS system's accurate

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inventory management will ensure that products are readily available, reducing the

likelihood of stockouts and ensuring a consistent supply of items in demand.

1.4.4. Future Researchers

The findings and insights from this study will serve as a valuable resource for future

researchers and developers interested in the field of retail technology. The customized

POS application for "ukay-ukay" stores can inspire further research and innovation in

software development for niche markets. Future researchers can build upon the

knowledge gained from this study to create more advanced and specialized solutions

for various retail sectors, contributing to the continuous evolution and improvement of

technology in the Philippine retail industry.

1.5. Scope and Limitation

This section delineates the scope and limitations of the Management System with

Point-of-Sale (POS) for Cultivate Tarlac City. It outlines the extent of the project's

objectives, defining the specific features and functionalities that the system encompass.

Additionally, this section acknowledges the inherent limitations that may influence the

system's implementation, performance, and effectiveness. By clearly defining both the

scope and limitations, this section provides a comprehensive understanding of the

project's boundaries and potential challenges.

1.5.1. Scope

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The scope of the Point-of-Sale (POS) system for Cultivate encompasses the

design and development of a user-friendly and efficient software solution. The

system is tailored to address the specific needs of both the Administrator and

Cashier roles within the store. The key components and functionalities of the

POS system are as follows:

1.5.1.1. Administrator

1.5.1.1.1. Dashboard Module

The system will provide the Administrator with a comprehensive Dashboard module.

This module offers an intuitive interface to access real-time data on store performance,

sales, and inventory levels. Visual representations of key metrics will enable the

Administrator to monitor the store's overall health and make data-driven decisions.

1.5.1.1.2. Point-of-Sale Module

The Administrator has access to the Point-of-Sale module, which allows manual data

input and supports barcode scanning for efficient sales transactions. The module

facilitates order processing, payment handling, and receipt generation.

1.5.1.1.3. Inventory Module

The Inventory module empowers the Administrator to manage products effectively. This

module enables the addition, editing, and deletion of product details. Additionally, the

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Administrator have the capability to manage inventory levels, ensuring accurate stock

tracking.

1.5.1.1.4. Report Module

The system includes a Report module that enables the Administrator to generate

detailed reports on sales and inventory data. Reports are available on a daily, weekly,

and monthly basis, providing insights into sales trends and inventory management.

1.5.1.2. Cashier

1.5.1.2.1. Point-of-Sale Module

The Cashier has access to a simplified version of the Point-of-Sale module. This

module allows the Cashier to scan product barcodes quickly and efficiently during

transactions. It will facilitate smooth checkout processes and accurate recording of

sales.

1.5.1.2.2. Customer Order Display Module

The Customer Order Display Module provides the customers with clear visibility into

their current transactions, including a list of items being purchased, individual item

prices, and the total transaction amount. This module aims to enhance transaction

transparency and customer awareness.

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The POS system was designed to enhance the efficiency and accuracy of operations at

Cultivate. It aims to simplify and streamline sales, inventory management, and reporting

procedures. By providing a user-friendly interface and relevant features for both

Administrators and Cashiers, the POS system helps optimize daily store activities and

contribute to improved customer service.

1.5.2. Limitation

While the POS system offers significant benefits, it also has certain limitations that

should be taken into consideration:

1.5.2.1. Hardware and Software Compatibility

The system's functionality may be influenced by the compatibility of the hardware and

software used in the store. Compatibility issues could arise with existing equipment or

operating systems, potentially requiring hardware upgrades or software adjustments.

1.5.2.2. Internet Connectivity

Certain features of the system may rely on a stable internet connection. Limited or

unreliable internet connectivity could affect the system's real-time updates and

accessibility.

1.5.2.3. Customization Constraints

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The system's customization to suit the unique requirements of a "ukay-ukay" store may

involve complexities and limitations in certain areas. The customization process should

be balanced with practicality and resource constraints.

1.5.2.4. Training and Adoption

Adequate training for both Administrators and Cashiers is essential for successful

system adoption. Ensuring smooth transition and user acceptance may require initial

efforts in training and support.

1.5.2.5. Data Security

While measures have been taken to ensure data security, the effectiveness of the

system in safeguarding sensitive information may still be subject to potential security

risks.

1.5.2.6. Third-Party Integration

The system have limitations in integrating with third-party applications or business

systems, which may impact data exchange and overall business efficiency.

Despite these limitations, the POS system significantly contributed to the improvement

of Cultivate's overall operations, efficiency, and customer service. The system's benefits

are expected to outweigh its limitations, making it a valuable tool for optimizing store

performance.

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CHAPTER 2

RELATED LITERATURE

This chapter presents a comprehensive review of relevant literature and previous

studies related to the topic of the study. The review aims to shed light on the motivation

and background of the research, providing insights into existing technologies and

practices in the retail industry, particularly in the context of "ukay-ukay" businesses. By

examining previous works, this chapter will identify gaps in the current knowledge and

highlight the need for the development of a customized point-of-sale (POS) system for

Cultivate and similar establishments.

2.1. Local Literature

2.1.1. Janine Tapere (2020) defines a point-of-sale system as a comprehensive tool

that manages financial processes and transactions in businesses, including client

purchases, shop purchase orders, and inventory sales management. These systems

are commonly used in large chain stores, where customers input their orders into a

screen, and the computer handles the calculations. The POS system also records

transactions for archival purposes.

2.1.2. Nathan Tienzo emphasizes the importance of access levels and login profiles in

a POS system, recommending limited access for employees, cashiers with access to

the register, managers with report access, and administrators with full control over

goods management (Tienzo).

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2.1.3. POS systems have demonstrated numerous benefits for businesses, as

highlighted by Antonio et al. (2017). They increase efficiency, reduce operational costs,

enhance customer service, and provide better inventory management. These systems

streamline processes, leading to overall cost savings and improved customer

satisfaction.

2.1.4. Maria Luisa's study (2016) delves into the analysis of POS system adaptation in

Philippine retail stores. The study explores factors affecting the adaptability of POS

systems and the advantages that businesses can gain from their utilization.

2.1.5. Andrea Ortega Guanco (2021) defines a point of sale as the location where

consumers complete their purchases and where sales tax may be applied. This can be

a physical store with POS terminals handling card payments or a virtual sales point

using electronic devices.

2.1.6. The preferred POS system among retailers is Shop Keep, as indicated by S.

Angeles (2016). This cloud-based system offers a variety of tools that help retailers

save time, boost sales, and enhance overall business operations.

2.1.7. Jojo Balagosa (2014) notes that POS systems have revolutionized business

operations in the Philippines, providing functionality and features tailored to meet unique

business demands. These systems have enhanced sales procedures, improved

accuracy, and transformed the way businesses operate.

2.2. Foreign Literature

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2.2.1. Foreign studies also emphasize the significance of POS systems. Cote (2016)

highlights their role in effective decision-making processes within firms, providing

valuable information for ordering, inventory control, customer service, projections, and

demand forecasting.

2.2.2. According to Cara Wood (2016), POS systems control every step of a store's

operations, from inventory management to sales transactions. These systems provide a

wealth of information about sales, customers, and transaction details.

2.2.3. POS systems are checkout locations in commercial operations where

transactions occur, as stated by Rosemary Peavler (2017). POS terminals enable

perpetual inventory control systems, contributing to efficient business processes.

2.3. Synthesis

The synthesis of related literature reveals a clear gap and the need for a customized

POS system for "ukay-ukay" businesses like Cultivate. While technology has been

instrumental in boosting productivity in various industries, "ukay-ukay" establishments in

the Philippines have been slow to adopt technology, resulting in challenges in managing

sales, inventory, and invoices. The specific issues faced by Cultivate include the lack of

formal receipts, potential data loss, and time-consuming sales tracking. These factors

highlight the urgency to develop an efficient POS application tailored to address these

unique challenges.

The literature also emphasizes the advantages of POS systems, such as enhanced

inventory control, faster checkout procedures, and improved customer satisfaction.

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While there is a limited amount of research specifically focused on "ukay-ukay" retailers,

general studies demonstrate the positive impact of POS systems on inventory

management, sales income, and transaction accuracy. Thus, the implementation of a

POS system at Cultivate is expected to significantly improve its operations, inventory

management, and overall customer experience.

The significance of the study is multifold. Firstly, the researchers gained valuable

knowledge and expertise in developing a system that caters to the specific needs of a

business. Secondly, the store owner experienced increase efficiency in managing

Cultivate, with streamlined sales tracking and simplified daily operations. Thirdly,

customers will benefit from the POS system through the issuance of official receipts,

making returns and exchanges more convenient.

2.4. Technical Background

The technical background of the project highlights the necessity of utilizing technology

to improve production and efficiency in today's organizations. While the adoption of

technology in the Philippines, particularly in "ukay-ukay" establishments, has been

relatively slow, the need for advanced solutions becomes evident when examining

challenges faced by businesses like Cultivate. The existing manual approach leads to

labor-intensive operations and increases the risk of data loss.

To address these issues, the customized POS application for Cultivate offers a range

of features to enhance shop productivity and streamline transactions. By incorporating

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barcode scanning, the system facilitates faster and more accurate sales processing.

The inventory module allows for easy management of products and inventory, enabling

efficient additions, edits, and deletions. Additionally, the report module provides detailed

insights into daily, weekly, and monthly sales, aiding in decision-making and sales

monitoring.

The significance of technology in business operations, particularly in addressing the

unique challenges faced by "ukay-ukay" retailers like Cultivate, cannot be overstated.

Through the development of a tailored POS application, Cultivate aims to improve data

management, optimize consumer transactions, and elevate overall shop operations,

exemplifying the benefits that technology can bring to the retail industry. The

subsequent chapters will delve into the implementation and design aspects of the POS

system to fulfill the identified requirements and objectives.

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CHAPTER 3

METHODOLOGY RESULTS AND DISCUSSION

3.1. Software Design, Products and/or Processes

In this section, the proponents delve into the software design process specific to the

development of the Web-Based Inventory Management with PoS System for Cultivate.

This design process takes inspiration from The Double Diamond Design Process Model

(Humble, 2023) and aims to address the unique challenges posed by creating an

innovative web-based solution for inventory management and point-of-sale.

3.1.1 The Double Diamond Design Process Model

Figure 1: Double Diamond Design Process

Figure 1 illustrates The Double Diamond Design Process, a methodology that guides

the development of the Web-Based Inventory Management with PoS System. It is an

approach rooted in design thinking, tailored to address the complexities of managing

inventory and PoS operations in the context of Cultivate. The model consists of four

distinctive phases, each represented by a diamond shape: Discover, Define, Develop,

and Deliver.

3.1.2 Divergent and Convergent Thinking

The design process for the Web-Based Inventory Management with PoS System

incorporates both divergent and convergent thinking:

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3.1.2.1 Divergent Thinking

Divergent thinking plays a crucial role in the creative exploration of multiple perspectives

and innovative approaches to managing inventory and PoS operations at Cultivate. It

encourages developers to think freely, without constraints, and to explore various

angles and possibilities.

3.1.2.2 Convergent Thinking

Convergent thinking, while critical, is also necessary to bring structure to the

development process. It guides the team towards narrowing down the expansive set of

ideas into feasible and deliverable solutions, ensuring that the system meets the

specific needs of Cultivate.

3.1.3 Problem and Solution Space

In the context of the Web-Based Inventory Management with PoS System for Cultivate,

the design process involves two distinctive spaces:

3.1.3.1 Problem Space (Discover Phase)

The Problem Space, often referred to as the "Research" diamond, is where the

development team immerses themselves in understanding the unique challenges posed

by managing inventory and point-of-sale operations at Cultivate. This phase involves

extensive research, including interviews and data collection, to define the problems and

needs specific to the organization.

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3.1.3.2 Solution Space (Develop Phase)

The Solution Space, also known as the "Implementation Diamond," is where the

development team transforms their research and problem understanding into actionable

solutions. This phase involves designing, implementing, validating, and scaling

solutions. It encompasses activities such as prototyping, experimentation, and system

development tailored to meet Cultivate's requirements.

3.1.4 The Four Phases of the Double Diamond for Web-Based Inventory

Management with PoS

The Web-Based Inventory Management with PoS System development process

adheres to the four key phases of the Double Diamond Design Process: Discover,

Define, Develop, and Deliver.

3.1.4.1 Discover Phase

In the Discover Phase, developers immerse themselves in the specific challenges of

managing inventory and PoS operations at Cultivate. This phase involves in-depth

research, including interviews and data gathering, to thoroughly understand the

organization's unique requirements.

3.1.4.2 Define Phase

The Define Phase takes the insights from the Discover Phase and transforms them into

well-defined problems and objectives. It lays the foundation for the subsequent design

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and development stages, setting clear goals for the Web-Based Inventory Management

with PoS System.

3.1.4.3 Develop Phase

The Develop Phase is where the creative process begins. It focuses on generating

potential solutions tailored to Cultivate's requirements. This phase involves prototyping,

designing, and implementing the web-based system for inventory management and

PoS operations.

3.1.4.4 Deliver Phase

In the Deliver Phase, the emphasis is on validating the solutions that work and

preparing the web-based system for real-world deployment. It includes the practical

implementation of the system and beta testing to ensure it effectively meets Cultivate's

inventory and point-of-sale needs.

3.2. System Architecture

In this section, the system architecture of the Web-Based Inventory Management with

PoS System for Cultivate is examined. System architecture serves as a foundational

element of any software solution, playing a pivotal role in ensuring the functionality and

performance of the system.

3.2.1 System Architecture Overview

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Figure 2: System Architecture of Web-Based Inventory Management with PoS

The system architecture, as illustrated in Figure 2, outlines the key components that

collectively support the functionality and performance of the Web-Based Inventory

Management with PoS System for Cultivate. Following best practices in system design,

the architecture incorporates a three-tier structure, including a presentation layer (front-

end), an application layer (back-end), and a data layer.

3.2.2 Presentation Layer (Front-end)

The presentation layer represents the user-facing interface of the system, which is

accessible through web browsers. It provides a user-friendly platform for interacting with

the inventory management and PoS functionalities. The front-end has been

meticulously designed to ensure a seamless and intuitive user experience, facilitating

easy navigation and efficient operation.

The design and development of the front-end draw inspiration from modern web

development frameworks, including Bootstrap and JQuery, in alignment with

contemporary web design principles (Sugandhi et al., 2019). This ensures that users

can efficiently engage with the system and perform tasks effortlessly.

3.2.3 Application Layer (Back-end)

The application layer forms the core of the system's architecture, housing the business

logic and functionalities crucial for inventory management and PoS operations. This

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layer is responsible for handling complex tasks such as transaction processing, ledger

management, and the generation of financial reports. It serves as the repository of the

system's intelligence, enabling it to effectively support Cultivate's unique operational

requirements.

In the development of the back-end, industry best practices and robust technologies

have been employed. The proponents leveraged Bitnami WAMP, a comprehensive web

development stack that includes Apache for handling HTTP requests and Cake PHP for

application development, ensuring a robust and reliable back-end system (Elsayed et

al., 2020). This technology choice guarantees the system's reliability and scalability,

essential for seamless inventory management and PoS operations.

3.2.4 Data Layer

The data layer plays a central role in securely storing and managing the system's critical

financial information. Typically built on a relational database management system

(RDBMS), the data layer ensures data security and integrity while making financial data

readily accessible when needed.

For the Web-Based Inventory Management with PoS System, a reliable RDBMS, such

as MySQL, was employed for data storage and management, adhering to industry

standards (Rahman et al., 2019). This choice of database technology ensures the

secure storage and retrieval of critical financial data, a vital aspect of the system's

success.

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3.3. Conceptual Design

Figure 3: Conceptual Design of Web-Based Inventory Management with PoS

The conceptual design, as illustrated in Figure 3, outlines the high-level structure and

functionality of the Web-Based Inventory Management with PoS System. This design

lays the foundation for efficient inventory control and PoS operations.

3.3.1 Conceptual Design Overview

The conceptual design offers a holistic view of the system's structure, ensuring that all

necessary data points are captured and used to support Cultivate's store operations

effectively.

3.3.2 Key System Features

The system's conceptual design integrates three key features: Product Inventory

Management, Point of Sale (PoS) Functionality, and Real-time Reporting. These

features work together to optimize operational efficiency and enhance customer

satisfaction.

3.4. Cost Benefit Analysis

The decision to implement a Management System with POS at Cultivate Tarlac City

involved a thorough evaluation of costs and benefits. This section provided an in-depth

analysis of the financial implications and advantages associated with the system.

3.4.1. Costs Analysis

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When considering the implementation of a Point-of-Sale (POS) system at Cultivate,

several essential costs had to be taken into account:

3.4.1.1. Hardware and Software Costs

To establish the POS system, the acquisition of hardware components, including a

computer, scanner, and printer, was necessary. Additionally, a POS software system

needed to be procured. Hardware expenses could range from PHP 20,000 to PHP

50,000, while the software could cost between PHP 10,000 and PHP 30,000.

3.4.1.2. Installation and Training Expenses

Implementation and staff training expenses were crucial aspects. Hiring professionals

for system installation and employee training was associated with costs ranging from

PHP 5,000 to PHP 10,000. The complexity of system components would influence the

duration of training sessions. If multiple store branches were involved, additional fees

might apply, depending on the location and number of participants.

3.4.1.3. Maintenance and Upgrades

Factoring in future system upgrades and ongoing maintenance was essential. Routine

hardware and software maintenance expenses were expected to range from PHP 5,000

to PHP 10,000 annually. It was important to note that these fees did not cover costs

related to new site installations or additional training sessions.

3.4.2. Benefits Analysis

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Implementing a POS system at Cultivate offered a multitude of advantages:

3.4.2.1. Enhanced Efficiency

Modernization of inventory control, sales tracking, and various company procedures

with a POS system significantly reduced time and effort compared to manual

operations. This led to improved overall efficiency.

3.4.2.2. Accurate Data Handling and Analysis

The POS system helped minimize errors in sales and inventory control, ensuring

accurate calculations of sales, discounts, and stock counts.

3.4.2.3. Improved Customer Service

A POS system accelerated transaction processing, leading to better customer

satisfaction and service. The system streamlined checkout procedures, enhancing the

overall purchasing experience.

3.4.2.4. Enhanced Reporting and Analytics

Utilizing a POS system provided valuable insights into customer behavior, inventory

control, and sales trends. This data empowered business owners and managers to

make informed decisions, resulting in improved business strategies and increased

profitability.

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While initial costs were involved, the long-term advantages in terms of productivity,

accuracy, and reporting and analytics may well outweigh these expenses. Business

owners must meticulously evaluate their options and conduct a comprehensive cost-

benefit analysis before deciding to deploy a POS system within their "ukay-ukay"

establishment. The positive impact on company efficiency and profitability made the

investment worthwhile.

3.5. Requirement Analysis

The Requirement Analysis phase involved a comprehensive exploration of the key

features and functionalities that the Management System with POS for Cultivate Tarlac

City must encapsulate. This process laid the foundation for a system that seamlessly

catered to the unique operational demands of the "ukay-ukay" store. The primary

objectives included:

3.5.1. Point of Sale (POS) Functionality

The foremost requirement entailed an intuitive and efficient Point of Sale (POS)

interface. This interface needed to facilitate seamless sales transactions, including item

scanning, accurate price calculations, the application of discounts, and support for

multiple payment options.

3.5.2. Customer Order Display

To enhance the customer experience, a real-time Customer Order Display feature will

be integrated. This feature will allow users to view their purchases as they are added to

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the transaction, displaying product names, prices, and the running total. This real-time

display ensures customers have full visibility of their order throughout the shopping

process.

3.5.3. Inventory Management

An integral aspect was the implementation of a robust inventory management system.

This system was designed to offer real-time visibility into stock levels, allowing for

efficient management of new and retired items. Additionally, it would provide timely

reorder alerts to ensure optimal inventory levels.

3.5.4. Sales Tracking and Reporting

The system's capacity to monitor sales transactions and generate comprehensive

reports was another critical facet of the requirement analysis. This feature was intended

to enable the analysis of sales trends, identify popular items, and offer insights into the

overall business performance.

3.6. Block Diagrams

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Figure 4: Block Diagram of Web-Based Inventory Management with PoS

Figure 4 illustrates the overall System Architecture of the Management System with

POS. This visual representation emphasized the interconnectedness of the modules

and their role in creating a cohesive and efficient system. Figure 4 portrayed the

Conceptual Framework of the study, offering a high-level view of how various

components, such as Sales Transactions, Inventory Management, and Reports,

interacted to create a dynamic system that managed inventory and facilitated sales

transactions. The block diagrams aptly demonstrated the intricate relationships between

different components, emphasizing the pivotal roles they played in maintaining inventory

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accuracy, facilitating sales, and ensuring a streamlined shopping experience. The

harmonious integration of these components and their respective functionalities ensured

that the Management System with POS for Cultivate Tarlac City served as a

comprehensive solution, enhancing operational efficiency, customer satisfaction, and

overall business success.

3.7. Development and Testing

The development and testing of the Web-Based Inventory Management with PoS

System embraced the Agile Software Development Paradigm. This methodology was

meticulously executed with a focus on enhancing system efficiency and robustness

through iterative development, collaboration, and adaptation to evolving requirements.

3.7.1. Agile Development Process

3.7.1.1. Requirements: The process commenced with comprehensive requirements

gathering and analysis. This phase involved extensive interactions with stakeholders,

including Cultivate's management, staff, and end-users, to deeply understand their

specific needs. Proponents meticulously documented these requirements,

distinguishing between essential and non-essential functionalities. This distinction

helped establish clear and concise requirements, aligning them with Cultivate's

operational demands.

3.7.1.2. Design: Following the requirements analysis, the system design phase

unfolded. This stage was marked by the creation of a detailed system architecture and

design. The design addressed various critical aspects, including data structure, user

interface, security mechanisms, and scalability. Collaborative workshops were held,

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involving developers, designers, and stakeholders. These sessions allowed the team to

ensure that the design precisely met the previously identified requirements.

3.7.1.3. Development: Once the design was approved, the project transitioned into the

development phase. The development of the system involved coding and rigorous

implementation. Proponents adhered to Agile development practices, emphasizing

iterative and incremental development. Short sprints were adopted as the development

framework. During each sprint, the team delivered small increments of functionality. The

development process was marked by continuous collaboration, and a robust

communication framework ensured that team members were aligned with the project's

objectives.

3.7.1.4. Testing: Testing was a pivotal phase in the Agile development process. It

encompassed a battery of tests to ensure the quality and functionality of the developed

features. The ISO 25010 Software Quality testing methodology was used to assess the

software quality of the Web-Based Inventory Management with PoS System. Black-box

testing was another essential element of the testing phase, focusing on evaluating the

system's behavior and ensuring it met specified requirements.

3.7.1.5. Deployment: Upon successful completion of testing and gaining stakeholder

approval, the developed features were deployed in a production environment. This

marked a crucial step in making the system available for end-users. Activities such as

data migration, system configuration, and setup were meticulously carried out. Hosting

services, provided by Hostinger, were leveraged to facilitate system availability and

accessibility for end-users.

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3.7.1.6. Review: The final phase centered on the review of the deployed system. The

proponents and Cultivate's management and staff conducted a comprehensive

evaluation of the system. User feedback was diligently collected and analyzed. This

iterative feedback process informed the refinement of the product backlog, guiding the

planning of subsequent sprints and fostering a culture of continuous improvement. Any

necessary adjustments and updates were implemented to ensure that the system

remained closely aligned with Cultivate's evolving operational needs.

3.7.2. Software Quality Assurance (SQA)

Software Quality Assurance (SQA) is a set of activities designed to evaluate the

sufficiency of software. SQA provides evidence to instill confidence in the software

process and its ability to produce a quality product. This process employs ISO 25010 as

a metric for measuring the software quality of the Web-Based Inventory Management

with PoS System.

3.7.2.1. Characteristics and Subcategories of ISO 25010 Quality Model

ISO 25010 Quality Model encompasses eight characteristics and their respective

subcategories, pertaining to the dynamic and static properties of a computer system.

These characteristics provide consistent terms for defining, measuring, and evaluating

system and software quality.

3.7.3. Black-box Testing

Black-box testing is a method of evaluating software behavior and functionality by

examining its inputs and outputs. It simulates real-world user scenarios, identifies

discrepancies, and ensures software compliance with specified requirements. The

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testing method involves Success Parameters, which are used to validate the system

requirements of the Web-Based Inventory Management with PoS System.

3.8. Input and Output Reports and Analysis

Input-Output Analysis, often employed to examine interdependencies within economic

sectors, is a valuable framework when applied to the realm of Web-Based Inventory

Management with Point of Sale (PoS) systems. In this context, such systems capture,

process, and provide detailed insights into product data, sales, and inventory.

Leveraging Input-Output Analysis allows organizations to delve deeply into the

efficiency, effectiveness, and overall performance of their inventory management and

PoS systems.

Figure 5: Input-Output Analysis Chart for Web-Based Inventory Management with PoS

3.8.1. Inputs of the System:

3.8.1.1. Items/Products Data: This input encompasses a comprehensive dataset that

includes unique IDs, product codes, detailed descriptions, associated costs, and

specific quantity information. These data serve as the foundation for the system's

capability to track, manage, and sell products.

3.8.1.2. Customer Orders: This critical input comprises the orders placed by

customers. Each order represents a unique set of requirements, including the specific

products requested, quantities, and delivery preferences.

3.8.1.3. Payments: Financial transactions made by customers during the purchase

process. These transactions are recorded to maintain a financial record and ensure

secure transactions.

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3.8.2. Processes of the System:

3.8.2.1. Order Processing: The handling of customer orders is a multifaceted process.

It involves confirming the availability of ordered items, updating inventory levels,

preparing items for shipment, and ensuring timely delivery to customers. This process is

central to fulfilling customer requests efficiently.

3.8.2.2. Payment Processing: The financial aspect of the system necessitates the

verification and recording of payments made by customers. It ensures that the payment

methods are secure, and financial transactions are accurately documented.

3.8.2.3. Inventory Tracking: A fundamental aspect of the system, inventory tracking

involves real-time monitoring of product quantities. This process includes tracking

restocking needs, identifying low-stock items, and maintaining an up-to-date record of

items in stock.

3.8.2.4. Invoice Processing: Invoice generation or receipt issuance is an essential

component of the PoS system. This function is responsible for producing detailed

records of transactions, including product details, pricing, and total amounts.

3.8.3. Outputs of the System:

3.8.3.1. Printed Receipts: The system generates printed receipts for customers,

serving as tangible proof of purchase. These receipts provide customers with essential

transaction details and act as a record of their purchases.

3.8.3.2. Outgoing Products: The system ensures that products are effectively

processed, packaged, and sent to customers. Outgoing products are the tangible

outcome of successful order processing and inventory management.

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3.8.3.3. Sales/Inventory Reports: The system generates comprehensive reports

detailing sales transactions and inventory status. These reports offer insights into

product sales trends, popular items, and current stock levels, assisting businesses in

making informed decisions and strategic planning.

Conducting a comprehensive Input-Output Analysis for the Web-Based Inventory

Management with PoS system illuminates the critical roles of various inputs, processes,

and outputs within its intricate operational framework. This profound understanding

empowers organizations to identify areas for improvement, streamline processes, and

optimize the management of inventory and PoS operations. It is essential not only for

enhancing customer service but also for making informed strategic decisions within the

realm of business and inventory management.

3.9. Description of the Prototype

Cultivate’s Web-Based Inventory Management with PoS System is a dynamic web-

based solution developed to streamline inventory operations, enhance Point-of-Sale

transactions, and drive store efficiency. This system caters to the unique requirements

of both Administrators and Cashiers, introducing several key functionalities for each

role.

3.9.1. Current Challenges

Cultivate currently grappled with several operational inefficiencies stemming from

manual processes. These included the absence of proper sales receipts, vulnerability to

data loss, cumbersome sales monitoring, and protracted purchase processing times. To

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surmount these challenges and elevate customer service and store productivity, the

prototype of a Point of Sale (POS) application was being crafted.

3.9.2. User Roles

The system accommodates multiple user roles, each with specific privileges and

responsibilities:

3.9.2.1. Administrator

Administrators have full access to the system and can perform various tasks, including

managing products, overseeing sales, and generating reports.

3.9.2.2. Cashier

Cashiers are primarily responsible for processing sales transactions at the point of sale,

ensuring a smooth checkout experience for customers.

3.9.3. Scope and Key Functionalities

3.9.3.1. Administrator Modules

The Administrator Module serves as the central hub for efficient store management:

3.9.3.1.1. Dashboard Module - An intuitive interface providing real-time access to store

performance, sales data, and inventory levels. Visual representations of critical metrics

empower Administrators to make data-driven decisions.

3.9.3.1.2. Point-of-Sale Module - Offering advanced manual data input and barcode

scanning capabilities, the Administrator's Point-of-Sale module facilitates order

processing, payment handling, and receipt generation.

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3.9.3.1.3. Inventory Module - Equipping Administrators with the ability to manage

products effectively. This module supports product addition, editing, and deletion,

ensuring precise stock tracking.

3.9.3.1.4. Report Module - The system includes a robust Reporting module that

enables the Administrator to generate detailed reports concerning sales and inventory

data. These reports are available on daily, weekly, and monthly bases, providing

invaluable insights into sales trends and inventory management.

3.9.3.2. Cashier Modules

The Cashier Module focuses on optimizing Point-of-Sale operations:

3.9.3.2.1. Point-of-Sale Module - A simplified version tailored for Cashiers, this module

allows for quick and efficient barcode scanning during transactions, ensuring smooth

checkouts and precise sales recording.

3.9.3.2.2. Customer Order Display Module - Enhancing transaction transparency and

customer awareness, this module provides customers with real-time visibility into their

current transactions. It displays a list of items being purchased, individual item prices,

and the total transaction amount.

3.9.4. Importance and Implications

The significance of this prototype extends beyond Cultivate; it underscores the potential

for technology adoption to drive productivity and growth in the "ukay-ukay" sector of the

Philippine economy. While the prototype addresses Cultivate's specific concerns, its

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broader implications indicate the transformative power of technology in streamlining

traditional business models.

3.9.5. Limitations and Constraints

It is essential to recognize that while the system offers significant benefits, certain

limitations must be considered:

3.9.5.1. Hardware and Software Compatibility - The system's functionality may

depend on the compatibility of existing hardware and software. Compatibility issues

might necessitate hardware upgrades or software adjustments.

3.9.5.2. Internet Connectivity - Some features may rely on a stable internet

connection. Limited or unreliable connectivity can affect real-time updates and

accessibility.

3.9.5.3. Customization Constraints - Tailoring the system to unique "ukay-ukay" store

requirements might present challenges and limitations. The customization process

should balance practicality and resource constraints.

3.9.5.4. Training and Adoption - Successful system adoption requires adequate

training for Administrators and Cashiers. Ensuring a smooth transition and user

acceptance may require substantial efforts in training and support.

3.9.5.5. Data Security - While data security measures are in place, the system's

effectiveness in safeguarding sensitive information may still be subject to potential

security risks.

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3.9.5.6. Third-Party Integration - Limitations may exist concerning the integration of

third-party applications or business systems, impacting data exchange and overall

business efficiency.

3.10. Implementation Plan

The implementation plan for the Management System with POS at Cultivate Tarlac City

is a pivotal roadmap designed to ensure the seamless deployment of the system. Built

upon the existing project information and enriched by the principles of parallel

implementation strategy, this plan is geared towards achieving a flawless transition to

the new system.

Figure 5: Parallel Implementation

3.10.1. Parallel Implementation Strategy Integration

Incorporate the principles of parallel implementation, which involves running the new

POS system alongside the existing manual system for a limited duration. This approach

enables real-time comparison, facilitating the identification and rectification of

discrepancies, while ensuring a smooth transition.

3.10.2. Phased Approach

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3.10.2.1. Adopt a phased approach to deployment, where the POS system will be

introduced incrementally while the manual system remains operational.

3.10.2.2. This staged implementation will allow for iterative testing, validation, and

adjustments.

3.10.3. Implementation Stages

Stage 1 – Coexistence

Implement the POS system alongside the manual system, enabling parallel operations.

This coexistence phase will help identify any disparities between the two systems.

Stage 2 - Testing and Refinement

Thoroughly test the POS system in a controlled environment. Address any identified

issues and refine the system for optimal performance.

Stage 3 - Limited Deployment

Begin deploying the POS system in select areas or departments, gradually expanding

its coverage while maintaining parallel operations.

Stage 4 - Evaluation and Fine-Tuning

Continuously assess system performance, user feedback, and operational challenges.

Fine-tune the POS system based on these insights.

Stage 5 - Full Rollout

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After rigorous testing and adjustments, fully replace the manual system with the POS

system.

3.10.4. Benefits of Parallel Implementation

3.10.4.1. Risk Mitigation

By running both systems simultaneously, potential risks and issues can be promptly

identified and resolved.

3.10.4.2. Gradual Transition

Employees can gradually acclimate to the new system, minimizing disruptions and

learning curves.

3.10.4.3. Fallback Option

In case of unexpected issues with the POS system, the manual system can serve as a

fallback.

3.10.4.4. Accurate Comparison

Parallel operations allow for accurate comparisons between the manual and POS

systems, aiding in identifying discrepancies.

3.10.5. Monitoring and Evaluation

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3.10.5.1. Continuously monitor the performance of both systems during the parallel

operations phase.

3.10.5.2. Collect feedback from users to identify pain points and areas for improvement.

3.10.5.3. Conduct regular assessments to evaluate the success of the parallel

implementation strategy.

3.10.6. Full Transition

3.10.6.1. Once the POS system demonstrates consistent performance and alignment

with objectives, proceed with the full transition.

3.10.6.2. Ensure that employees are well-trained and prepared for the complete shift to

the POS system.

3.10.7. Continuous Enhancement

3.10.7.1. Even after full transition, remain open to enhancements and improvements

based on user feedback and evolving business needs.

3.10.7.2. Stay updated on POS technology advancements and assess opportunities for

further integration.

By integrating the parallel implementation strategy into the phased deployment

approach, Cultivate Tarlac City can confidently embrace the Management System with

POS while minimizing disruptions, ensuring accurate comparisons, and optimizing

system performance throughout the transition process.

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CHAPTER 4

RESULTS AND DISCUSSION

This chapter presents the data and information gathered from the study. Results are

presented in the form of figures, tables, graphs, and text. The discussion portion delves

into the principles, relationships, and generalizations supported by these results. It also

considers the implications of the findings and their practical applications. Where

applicable, the study's results are compared and interpreted in the context of previously

published works.

4.1. Findings

The findings of this study underscore the profound advantages arising from the

implementation of the Management System with Point-of-Sale (POS) at Cultivate

Tarlac City. The system's capacity to streamline operations, simplify sales and

inventory management, and enhance the customer experience has been firmly

established. The study emphasizes the positive impact on store efficiency, sales

accuracy, and inventory control, ultimately contributing to heightened customer

satisfaction. Furthermore, the study identifies areas of strength and highlights potential

enhancements to maximize the system's benefits.

4.2. Conclusion

The Management System with POS for Cultivate Tarlac City offers a multitude of

benefits to various stakeholders, fostering operational efficiency, customer satisfaction,

and overall business growth.

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4.2.1. The Researchers

This study has served as a practical platform for researchers to apply their theoretical

knowledge in a real-world context. It has honed their skills in system design,

development, and project management. Additionally, it showcases their ability to

address practical business challenges and contribute to technological innovation.

4.2.2. The Store Owner

For the store owner, the system has proven to be a pivotal tool for optimizing store

operations. It simplifies sales and inventory management, streamlines transactions,

and offers real-time insights into business performance. The system has contributed to

enhanced decision-making and customer service, ultimately driving increased

profitability.

4.2.3. The Customers

Customers have benefited from the system's impact on service quality. With quicker

and more accurate checkout processes, improved inventory availability, and tailored

customer interactions, their overall shopping experience has been elevated. The

system's efficiency translates into smoother transactions and increased customer

satisfaction.

4.2.4. Future Researchers

Future researchers can leverage the study's insights as a foundation for further

exploration in the realm of retail management technology. They can build upon the

study's findings to investigate advanced integrations, emerging technologies, and

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evolving customer expectations, contributing to the continuous enhancement of retail

systems.

4.3. Recommendation

While the Management System with POS presents substantial advantages, there are

areas for further improvement:

4.3.1. Enhanced Reporting Capabilities

Expanding the reporting and analytics functionalities to offer more comprehensive

insights into sales trends, customer behavior, and inventory turnover could empower

decision-makers with deeper insights.

4.3.2. Mobile Compatibility

Exploring the development of a mobile application version of the system could facilitate

efficient inventory management and sales tracking while providing on-the-go access for

administrators and cashiers.

4.3.3. Integration with E-Commerce Platforms

Investigating the integration of the POS system with e-commerce platforms could

extend Cultivate's reach, allowing customers to shop online and enjoy seamless in-

store experiences.

4.3.4. Customer Loyalty Features

Implementing customer loyalty programs and features within the system could

incentivize repeat business and cultivate long-term customer relationships.

4.4. Directions for Future Research

This study encourages further research in the following areas.

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4.4.1. Impact on Customer Behavior

Investigating how the POS system influences customer behavior, purchasing patterns,

and loyalty in the context of "ukay-ukay" stores.

4.4.2. Advanced Technological Integrations

Exploring the integration of emerging technologies like artificial intelligence and

machine learning to optimize inventory forecasting and enhance customer

engagement.

4.4.3. Security Measures and Compliance

Delving into more comprehensive data security measures and regulatory compliance

strategies to protect sensitive customer and business information.

These recommendations and directions for future research aim to build upon the

successes of the current implementation and further elevate the Management System

with POS's capabilities and impact.

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