Chapter I

Introduction

Fashion industry is a product of the Modern age. It was handmade for

individuals, either as home production or on order from dressmakers and tailors.
Fashion is a popular style, especially in clothing, footwear, accessories, makeup,
or furniture. The Fashion retail industry here in the Philippines has most certainly
been going strong over the past two years. The industry is empowered by a vast
group of young consumers and a swiftly expanding middle class that have high
disposable wages. These groups show much interest to the Western type of
clothing and are very much well aware of foreign brands. Fashion is a typical an
often characteristic trend in the style in which a person dresses. According to the
educational article of Matthew E. Spencer titled Industry Analysis: Apparel, The
Apparel Industry consists of companies that design and sell clothing, footwear
and accessories. Product categories include everything from basics, such as
underwear, to luxury items, for example, cashmere sweaters and alligator-skin
handbags. Traditionally, apparel companies were wholesalers, selling large
quantities of goods to retailers, which then marked-up items and sold them to
consumers at a profit. However, it's become more difficult to draw a line between
wholesalers and retailers; most apparel companies now have both types of
operations.

The fashion industry has deep roots in traditional business practices and has
been late to adopt new technology. Nearly every aspect of the industry relies on
people rather than machines everything from hand-sketched designs to the
buying process, where an individual buyer's personal tastes can dictate an entire
department store's orders. In the past few years, all aspects of the industry
suddenly affected by new technology, increasing efficiency and providing much
needed data analysis and tracking components. Instead of relying on people to
analyze, project and improve, fashion brands now have the digital technologies
to meet these needs in a much faster way. One of the major challenges that most
online retailers face is the high percentage of returns; things don't fit right, the
quality of the material is off, or the customer just doesn't like it. But there are a
few companies in the space who are trying to solve the issue by providing more
accurate measurement tools and personalized user profiles. When it comes to
the actual shopping experience, customization and personalization seem to be
the

one

area

where

fashion

retailers

are

lagging.

But

companies

like Amadesa are providing a set of solutions targeted at increasing ROI, or

simply saving the number of clicks until purchase. From shopping cart
optimization to relevant product recommendations and end-to-end testing,
Amadesa is helping online retailers convert online window shoppers into actual
paying customers. New technologies such as A/B and Multivariate Testing, which
didnt exist in retail stores, let customers online actions determine what works
best. Now retailers can test images, promotional copy, offers, and a myriad of
other elements to improve ROI. Other companies are taking on the challenge at

the actual stores, with the help of new mobile technologies. Until now, stores had
very little data about shoppers and their experiences, unless a transaction had
been made. With the increasing popularity of location-based mobile technologies,
retailers are able to track their customers, virtually communicate with them, and
of course offer promotions. The two main players in this space offer different
approaches. Historically, media coverage has been a major catalyst of retail
sales, with magazines dominating the trends for years making or breaking
items simply by featuring them on their glossy pages. Today, the landscape is
more complicated, as online press and the proliferation of fashion bloggers are
now just as responsible for a major spike in sales. Social media in the fashion
industry refers to how brands in the named sector connect with their target
market though social media outlets such as Facebook, Twitter and YouTube.
LR Fashion Creations, Inc. has been since the year 2000. LR Fashion is
kind of business that sells clothing and accessories to people who loves fashion.
They rents and stalls on malls and display their products on there. After that, it is
the malls job to sell LRs products and gives the profits of sold products with
sales report to LR by the end of the month. Each area and branch the mall, one
agent from LR Fashion were assigned to monitor the products being sold. Those
agents are so important because they serve as the lookout for their sales and
verifier if the reports sent by the mall are accurate. With regards to inventory, LR
relies on the hard work of their employees by manually tallying their inventory.
This cause too much time and effort demand of the works. In terms on public

exposure and attracting customers, they rely that their customers would
recommend them to the other customers.
Having recognized the importance of online marketing as a part of
business transactions, the proponents decided to conduct a study to develop a
web-based system for LR Fashion, Creations Inc. that will minimize the paper
works in manual tallying and monitoring of inventory and sales, and that will help
the said company to get more exposure to public and possibly attracts more
customer.

Background of the Study

LR Fashion Creations, Inc. was established in the year 2000 and has
already provided 14 years of service to their customers. LR Fashion Creations,
Inc. rents a small selling area on SM malls and displays their products on there.
After that, it is the SMs job to sell LRs products and gives the profits of sold
products with also a sales report to LR by the end of the month. Each area and
branch of SM, one agent from LR Fashion were assigned to monitor the products
being sold. The agents were so important to them because they serves as the
lookout for their sales and verifier if the reports that sent by the SM were right.

In the fifteen years of operations LR Fashion Creations, Inc. does the

different transactions as follows: still relies on the hard work of their employees in
monitoring their inventory and sales. They manually tally their daily sales on

piece of paper then make a report and send it to the secretary at by end of a
month. Then secretary was obligated to encode the receive reports in an excel
sheet to create a monthly inventory and sales record for the company. In terms of
how the customers buy their items, customers should personally go to their
branches and buy their items. Having that, it is possible that they are not wellinformed about the update status of their desired item. They will only be informed
when they arrive and ask the agent who was watching the items being displayed.
In short, it may costs much time and effort for their customers.

Considering this, the proponents thought to make a web-based inventory

management and sales monitoring system that will enable the company easily
manage and monitor their inventory and daily sales. Also allows their customers
to view their updated item status and order such item by just visiting their
website.
The proposed system will be uploaded on the internet. Therefore, you can
access the proposed system in any computers with any operating system as long
as you have an internet connection and of course a browser that enable you view
the web pages of the system.
Having the web-based inventory management and sales monitoring
system, LR Fashion, Creations Inc.s current transaction such as: manual
managing of inventory and sales, manual promoting their business will be lessen.
They can manage their inventory efficiently and monitoring sales accurately. The
proposed system can also be more favorable to their customers. And importantly,
the possibility of attracting more customers will be high.

Theoretical Framework
f
INPUT
Initial interview
and research
-Research
identification
-Research
methodology

Gathering
information
about the
system
Conceptualizing
web design

PROCESS
-Analyze and review
the information
objectively
-Tabulation and
interpretation of all
data gathered in
research and
interview

OUPUT
-Summary of initial
information of
research being
conducted

-Analyze the
information gathered
objectively

-Conclusion of
information about
the system

-Creating the design

being conceptualized

- Web interface

LR FASHION CREATION WEB-BASED

INVENTORY MANAGEMENT AND SALES
MONITORING SYSTEM BUILT WITH P.O.S
Figure 1. Theoretical Paradigm of the proposed topic

This Theoretical framework is a compilation of all gathered information

and theories that are relate to the study. And illustrate that the proponents gather
information through ideas, survey, research and interview. It would help for what
possible answer could be for the system.
Figure 1 shows the Theoretical Paradigm of the proposed topic which
have the input of collection of data, initial interview and research, gather data and
ideas about the system, database concept and conceptualization of and the
output of each input used by the proponents are Information about the current

problem of the system, analysis of the system and quality assurance test to know
what will be the feedback of the users to the system, program the system for
Inventory and monitoring and visual appearance of the system to the user.

For the conceptual Diagram the proponent used the Input-Process-Output.

The IPO shows how the resources are converted to products.

Conceptual Framework
Input

Output

Process

-security code

-verifying username and

password

-access gain

-monitor inventory and

sales

-viewing and filtering

inventory and sales reports
-filtering item info

-produce filtered reports

-notified if there is a
stock in critical status

-manage inventory

-adding or modifying stocks

and adding new products

-item info updated

-item qty replineshed
-new product added

-manage user
accounts

-viewing user accounts info

-access users info

LR FASHION CREATION WEB-BASED

INVENTORY MANAGEMENT AND SALES
MONITORING SYSTEM

Figure 2.0 Conceptual Paradigm for Admin

The Conceptual paradigm (figure 2.0) shows that the Admin needs to login
their account before they can access to the system. After the gain access to the
system, they already can monitor the inventory and sales reports, he/she can
filtered specific report and print it. The admin can also can manage the inventory

by modifying item info (such as item name, prince and etc.), adding or
replenishing item stocks and adding new products if are having new type of
product.

Statement of the Problem

The primary goal of this study is to assess how the Web-based LR
Fashion, Creations Inc. Inventory Management and Sales Monitoring System
must be developed and be of help to its user mainly for inventory management
and sales monitoring of their goods.
Specifically aim to solve the needs of LR Fashion Creation Incorporated in
terms of their Sales and Inventory:
1. What problems are encountered by LR Fashion, Creations Inc. with
regards in the following:
a. Inventory Management
b. Sales Processing and Management
c. Sales Branch Processing of Data
d. Payment Transaction
e. Security

2. What improvements can be made using the proposed system to enhance

the effectiveness of LR Fashion, Creations Inc.s sales and inventory
system?
a. Inventory Management
b. Sales Processing and Management
c. Inter Branch Communication
d. Security
3. How can the title of the study be evaluated in terms of:
a. Accuracy
b. Efficiency
c. Reliability
d. Maintainability
e. Security

Hypothesis
There is no significance difference between the existing and the proposed
system in terms of:
a. Accuracy
b. Efficiency
c. Reliability

d. Maintainability
e. Security

f.
g.
h. Significance of the Study
i.
This study will give an advantage for those people

j.

who will be using this system and explains what benefits they will
acquire upon using the proposed system.
k.

Company
l.

Due to this system, the company can be more confident

about their sales. Its because unlike before, they can easily view their
updated sales status whenever they wanted to. More importantly, they can
manage their inventory efficiently than before.
m.
n.

Customers
Same with employees and managers, the customer can

easily view the available inventory stocks of the said company. They dont
need waste their time and effort just to go personally to the respected
branches of the said company just to look for available items. They can
also buy any of it without leaving their home by just using their personal
computer or any devices that has an internet and can access the World
Wide Web (www).
o.
p.

To the Future Researchers

q.

This study will serve as a reference and guide to

future researcher in enhancing the system if it is needed.

r.
s.
t. Scope and Limitation
u. Scope
v.

This thesis is written in Pamantasan ng Lungsod ng Valenzuela. In

order to remain consistent, only LR Fashion Creations Inc. will be studied. This
study focuses mainly for the development of web-based inventory management
and sales monitoring system that will only be used by LR Fashion Creations Inc.
for accurate and fast managing and monitoring their inventory, monitoring sales
and also generates reports in efficient way.
w. Limitation of the Study
x.

The system can only do the following:

Generates reports (such as inventory reports and sales reports).

Manage Inventory (such as adding stocks, adding new products,

modifying item info and remove items doesnt needed)

Monitor Inventory and Sales (can distinguish the items that are in critical

status)
Accept order from the customer
Monitor customers who were always buying items
Display all items that were in inventory on customer page
Enable the customer to view updated stocks and order selected items
y.