CHAPTER 1

INTRODUCTION

NHE MARKETING CREDIT AND INVENTORY SYSTEM WITH SMS NOTIFICATION

Background of the Study

In today's fast-paced business environment, technology plays a critical role in helping businesses

manage inventory effectively. With the right tools and systems, businesses can improve

inventory management accuracy, efficiency, and overall performance. Every business, whether it

is a manufacturer or service provider, needs to keep its inventories on hand in order to carry out

its production and selling activities. Inventories have long been regarded as a necessary evil,

since they allow companies to respond to fluctuations in demand and unpredictable delivery

times for their suppliers. However, the production costs of goods and services are expected to

increase due to high inventories. Inventory as a party of organization assets where by

management become concerned with the inventory stock. Inventory referred as a stock of

materials that used to facilitate in manufacturing of goods or to satisfy customer needs. On the

other hand, the high level of inventories leads to higher production costs that have a significant

effect on company profitability. The topic of inventory management has gained interest as a

research field, with mathematical models and administrative policies used to make decisions on

the quantity and timing of supply orders.

According to Chitale A.K. and Gupta R.C. (2014), "Inventory is defined as sum of the

value of raw materials, fuel and lubricants, spare parts, maintenance consumable, semi-processed

materials and finished goods, stock at a given point in time,". Thus, inventory management is
crucial to an organization because it aids in the proper planning of the materials needed to

determine the difference between the desired and actual level of materials, resource allocation,

selling, and hiring staff, as well as all matters related to human resources management. These

technologies, techniques, and procedures that assist in the monitoring and upkeep of stocked

products, such as company assets, raw materials, finished goods, and final consumers, are

combined to form an inventory control management system. Asset tags, labels, and serials are

components of an inventory system. On the other side, inventory control system is another name

for inventory control management system. "Inventory control systems are technological solutions

that integrate all aspects of organizations inventories tasks, including shipping, purchasing,

receiving, warehouse storage turnover, tracking, and reordering," states by Indira P. (2018).

(Ricklavely, 1996). Orobia et al. (2020) specified a significant relationship between IM

and the financial performance of small firms. Effective IM practices can become helpful for

SMEs to ensure financial soundness.

Lack of inventory management has consequences because inventory management is

critical in all areas of business. This puts your organization or business at risk of losing profits

when supplies run out. On the other hand, having too much can be expensive in many ways.

Without inventory management is difficult, inventory is difficult, inventory is unbalanced, time

is wasted, vendor-customer relationships are strained, employee productivity is reduced, lead

times and inventory are extended, deliveries and deliveries are delayed, inventory organization is

at. risk, and unnecessary expenses are incurred. Atnafu and Balda (2018) found that a higher

level of inventory management technique can improve competitiveness and lead to higher

organizational performance. An effective technique for inventory management should analyze

the cost associated with different levels of inventory.

(Gaps)

In Global marketing inventory systems frequently face challenges related to data

accuracy, component integration, real-time tracking, and dynamic market adaptation. The

particular difficulties, however, may differ depending on the industry, the local setting, and other

elements. Interacting with regional experts and stakeholders will yield more precise and

comprehensive understanding of the current deficiencies in Hinunagan’s marketing inventory

systems.

Although there is market in province of Southern Leyte, particularly in some municipalities like

Hinunangan they are using inventory system but some of the system is not typically updated and

that’s the reason the researcher seeks the solution in this gap like in NHE marketing. The

researcher Platform of NHE MCIS SMS Notification is to enhance their manual process along

with their existing POS system into a systematic way using Web based (Inventory System)

where products item is stored. This procedure that keeps track of stock, suppliers, and sales along

the whole supply chain is called an inventory system. This inventory system includes SMS to

notify the costumers payment schedule and due date also in market changes. Businesses utilize

inventory systems to make sure they are aware of the precise things they have on hand as well as

their location. To assist other branches keeps track of their accounting for their stock, These

NHE Marketing Credit and Inventory System (MCIS) offer comprehensive records of new and

returned Items as they enter or exit the establishment. These inventory systems are capable of

tracking quantity, price per unit, stock, serial, and purchase dates, in addition of These SMS

notifications are intended to inform consumers about certain products they have purchased,

including shipping status updates, account changes, and order confirmations. Because they allow
for immediate client communication, companies use SMS notifications to inform customers

about all of their services and to remind them of their due date that are coming up.

Objectives of the Study

Generally, this project aims to develop and enhance the existing system of NHE marketing

which is (POS) point of sale into web-based system that serves as to maintain the required

inventory to run the production and sales process accurately

 Minimize the risk of under and overstocking of material.

 Reduce losses damages and misappropriation of materials.

 Reduce inventory processing time.

 Ensure overall inventory control.

 Notify the costumer through SMS.

 Easily track commission record and credit record.

 Auto generate payment record monthly and daily.

Evaluate the performance of the developed system to be patterned from ISO 9126- (Software

quality model standard) in terms of:

 Systems functionality

 Systems usability
  Systems efficiency

 Systems reliability and maintainability

Significance of the Study

The study contributes to one of the specifically on retailers/store owners, sales staff,

customers, and IT department and as well as it helps in contributing the strategic goal of the

university specifically in research, innovation, and extension.

Retailers/Store Owners: They benefit from better management of appliance sales and

inventory. The system helps in tracking product availability, managing stock levels, and

optimizing pricing strategies to maximize profits.

Sales Staff: Sales representatives benefit from a more efficient sales process. The system

can provide real-time information on product availability, pricing, and customer preferences,

enabling them to assist customers more effectively and potentially increase sales.

Customers: Improved inventory management ensures that customers can find the

appliances they need when they visit the store. Accurate product information and pricing

enhance customer satisfaction, leading to a positive shopping experience.

IT Department: The IT team benefits from the implementation and maintenance of the

system, ensuring data security, system reliability, and providing technical support for any issues

that may arise. If ever the system will deploy the