CHAPTER 1 INTRODUCTION It all starts through a single piece of merchandise introducing and promoting its own identity to at least three firms – (1) the manufacturer, supplier or vendor; (2) the wholesaler, consolidator or warehouse; and (3) the store, supermarket or merchandising company. A customer might call a certain product by its brand name but an insider might find out that merchandise is describable through long descriptions and often shortened through codes. And that is the role of a product or stock-keeping unit records – to tell the story of every merchandise by means of SKU code as reflected either on a tag, ticket or label. 1.1 PROJECT OVERVIEW The product or stock-keeping unit records are the stories or collection of SKU records kept by the supermarket or merchandising information system. It stores and offers significant information such as the merchandise classification, department, manufacturer, brand, style, color, and size, and the season in which the merchandise was taken into stock. It also translates these long descriptions through convenient and secured codes (e.g., stock-keeping unit codes, barcodes, category codes and packaging number). We can proceed to the actual processing of product, stock or item information, the system must be first molded and modified based on the company’s business processes and preferences. On most merchandise a story is written in code on a tag, ticket or label; then who reads this story on the ticket? Management reads it because the information on the ticket is important for many different retailing tasks. It helps in completing inventories, in deciding which merchandise lines are profitable, and in setting up sales policies for disposing merchandise. It tells buyers how many items are left in stock and whether a price reduction can be made, and it helps on that hopes sales people in adjusting returns and complaints. It prevents the misquoting of prices and assists the cashiers (especially in selfservice stories). Finally, the customer reads ticket because it tells him the price and size of an item. It is therefore essential that incoming merchandise be marked after it is received and checked. Marking is the process of putting a retail price on each item. In addition, Merchandising System – Product/SKU Records Module Page 1 because of the increase importance of keeping a close track of inventory changes, marking also often includes putting a detail identification of the item in code on the price ticket or tag. Marked merchandise on the shelf or rack or in the bin must be checked often to keep salespeople up to date on the availability of stock. As articles are sold, they must be replaced in the selling area. These stock-keeping activities add to the inventory information that marking provides. Marking and stock-keeping are important tools in the management of retail sales. In some stores, the marking of merchandise is handled in the place where goods are received and checked. In other stores, there is a marking room or area to which merchandise is brought after it has been checked. In small stores and in those kinds of retail operations where the turnover of stock is very rapid, such as a supermarket, marking is done on the selling floor. If marking is done in the receiving and checking area, the personnel in that area generally handle all three jobs: receiving, checking, and marking. If marking is done in a special area, the job is usually done by trained markers. If marking is done on the selling floor, salespeople usually do it. These SKU’s or articles are information acquired piece by piece; that starts from the manufacturer, supplier or vendor down to the market place. It will then be retrieved by the system either manually or electronically. In whatever means, the system will store essential information productive to various retailing tasks. Be guided, more details shall be available through further reading of this document. 1.2 THE PROBLEM DOMAIN 1.2.1 Statement Of The Problem What are the benefits or importance of a computerized stock-keeping unit system once it has been implemented on a market or merchandising business? How can a supermarket or merchandising industry manage its complex business processes in more effective and efficient way, if possible without exerting any additional amount of work force and cost? Merchandising System – Product/SKU Records Module Page 2 Can a supermarket or merchandising business maintains or even alleviate its integrity on their product records in terms of traceability and scale? What could be the done in order to categorize the business’s products in more convenient yet reliable way? How can single merchandise be different and uniquely identifiable among the other? Would it be possible to track certain merchandise by its category? Would it be possible to track certain merchandise by its marking date? Would it be possible to minimize or much better to eradicate human errors? What will the system generates to help the users on their decision-making when it comes to managing a supermarket or merchandise business? 1.3 OBJECTIVES OF THE PROJECT To record and manage various product or stock-keeping unit information. To simplify complex retailing task by means of generating SKU code, barcode, category code, etc. To monitor all products and SKU’s received, checked and marked inside the stockroom or warehouse. To implement SKU coding in order to uniquely identify each - merchandise with similar category, vendor, style, model, color, size and many other product attributes. SKU code that will provide easy access and alternative for long merchandise descriptions. Barcodes and descriptions that can be retrieved electronically by the system. Category codes that will organize each of merchandise to where it suits. Packaging number that will represent the number of merchandise, product or SKU in each package. Printing date that will serve as the basis on how long does a product was taken into stock. To visualize certain estimates when it comes to inventory. Merchandising System – Product/SKU Records Module Page 3 To visualize certain estimates needed for future decisions and provided by the number of merchandise per package. To propose a generic system that is secure convenient and user friendly. To synchronized retrieved product’s information by means of codes. To generate essential merchandise reports. To generate reports based on description, date-time, product category, SKU code or in any available way that the system may offer. To generate print outs of documents which may later be served as a ticket, label, or markings; containing SKU codes, barcodes, description, category code, date, and suggested retail price. To verify product Description through machine readable format necessary to process information rapidly. 1.4 SIGNIFICANCE AND SCOPE OF THE PROJECT It can be considered as a backbone of a Supermarket and Merchandising Information System. As the name goes, “Product / Stock-Keeping Unit Records”, it will actually record all of the items inside the stockroom. It is the source of information valuable to perform and accomplish various stock-keeping tasks. Although it is the source of merchandise information needed by the inventory controls, price management and other relevant subsystems; it also retrieves information but rather directly from the merchandising itself. Therefore marking and/or labeling products can be done by the stock-keeping unit records. It only needs the retail price to be retrieved from the price management. Thus, it produces a complete package of merchandise information ready to generate labels for the shelf and/or item as well as other relevant significant reports. 1.5 DOCUMENTATION OF EXISTENCE AND SERIOUSNESS OF THE PROBLEM At present time, some merchandising company prefers to utilize spreadsheets for recording their product information. Although it can be lined up as a computerized means, Merchandising System – Product/SKU Records Module Page 4 it still requires a lot of encodings and several repetitive human errors. Unless the spreadsheet is pre-programmed, it is inevitable that it will consume more time, cost and effort. As the employee will spent a lot of time encoding, there will always be an equivalent human errors that cannot be track by simply pressing the control + F during or as the customer returns the product and complain. And this would lead to the loss of customers and sales. And the company’s revenue is not even enough to equate the complex labor of the encoder. That is the reason why several large-scale supermarkets are now patronizing Point-of-Sale System. But because of its intricate features, they would go back to spreadsheets for stock-keeping purposes. Again, a lot of processes and labors are needed to execute. By the workers, In addition, even though a certain firm utilizes an almost perfect stock-keeping unit system it can still be modify and turn into a better one. Like adding features and controls that the latter cannot render such functionalities. Because as the saying goes, “Nothing is permanent except change”; a change for a better stock-keeping unit records system. For an instance, SM Supermarket cannot escape shopliftings and embezzlements in spite of their computerized and high technology means for running the business. Wherein it only means that there is no guarantee for accurate and real-time monitoring of their products. According to some recent researches, theft in American business is big business. Recently the yearly loss by manufacturers, wholesalers, and retailers from theft by robbers, shoplifters, and employees was estimated at approximately 16 billion dollars. Stock shortages are a real threat to retail profit. A stock shortage is the difference between the amount of merchandise that a store estimates it has in stock and the amount of merchandise that a physical count of goods reveals to actually be in stock. Such shortages run between 1.5 and 2 percent of retail sales in the average store each year. Moreover, many retailers have found recently that shortage as high as 3 and 4 percent have not been unusual. Since some retailers are able to earn only 3 or 4 percent net profit, it is evident that stock shortages can in fact destroy profit. If not stopped, they can cause the store to lose money. Merchandising System – Product/SKU Records Module Page 5 1.6 REVIEW OF EXISTING ALTERNATIVES Most stock shortages are the result of the following two causes: either (1) mistakes that have been made in keeping track of the inventory, which means that the discrepancy is due to a recordkeeping error, or (2) actual theft of merchandise. Some bookkeeping errors are inevitable because people make mistakes. Far more serious is theft by employees or by customers. When a customer steals or stock from the selling floor, the crime is called shoplifting. When an employee steals money or stock from the company for which he works, he has committed the crime of embezzlement. Theft, regardless of what is taken or who takes it, is a crime punishable by law. At one time retailers were reluctant to prosecute thieves, particularly the nonprofessional among shoplifters, because retailers wanted to avoid unfavorable publicity and loss of goodwill. However, because of the growing seriousness of the problem, most retailers now prosecute all thieves. Most people are honest. Most customers would not consider taking merchandise for which they had not paid, nor would they steal money out of an open cash register. Most store employees are just as honest. However, a few customers and employees are not as ethical, and they are responsible for a significant amount of theft. It is debatable whether dishonest customers or dishonest store employees can be pinpointed as the major cause of theft. However, it is not debatable that retailers are losing merchandise and money in alarming amounts. Employees have been known to steal cash as well as merchandise. Since salespeople deal with both cash and merchandise all day long, they have many opportunities to steal. Retailers have several effective methods of protecting themselves against employee theft. Close attention to money handling and receipts each day is essential. Periodic investigation of the accounts of the firm by outside accountants can provide positive safeguards against large-scale embezzlement. Checking the contents of packages which employees take out of the store removes the temptation to “borrow” merchandise. Everyone in the store is expected to be alert for all cases of theft, even if the Merchandising System – Product/SKU Records Module Page 6 thief is a fellow worker. Theft is a criminal act that hurts not only the company but everyone working for the company. One of the great menaces to today’s retailer is shoplifting. One chain estimates that its member stores lose more than 33 million pesos a year from shoplifting. Unfortunately, some of today’s retailing techniques have made shoplifting far easier than it was a few years ago. Self-service layout, fewer store personnel on the selling floor, open counter displays, the concentration of customers at peak buying hours, and the increase of night openings are factors contributing to the shoplifting problem. An awareness of the situation and an understanding of the kinds of people who steal from stores can help employees counteract this form of theft. In the end, a stock-keeping unit records would always be a helping hand to prevent stock shortages and theft. As those customers and employees would think twice and intimidate from doing wrong practices. But the perfect and proper run of the business will always depend upon the environment. Merchandising System – Product/SKU Records Module Page 7 CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES The role of Information Technology has grown immensely through businesses and organizations; as the market globalization defines IT as the backbone of any supermarket or merchandising intelligent-mechanism for creating a system that enhance and develop processes for market feasibility, supply traceability, supply maintenance, supply aggregation, quality of services and many other beneficial capabilities that depicts the modern world. As the market industry defines its procedures as the dimensions of sales, marketing, budgeting, outsourcing, franchising, and merchandising; on the other side, IT industry further connotes another language to comprehend the utmost of market and merchandising beyond the convenient manner through developed business processes and integrated systems. Supermarket/Merchandising Information Systems are the core of a supermarket or merchandiser’s business systems. It is a specific version of the so-called Point of Sale System as it gives emphasis on how a supermarket process goes. In line with this, every certain program is also subdivided into different subsystems. Thus, some of its common subsystems are as follows: point of sale, warehouse inventory, purchase order management, good receipt, allocation, replenishment, price management, store inventory control, point of sale control, and the product / stock keeping unit records. Although all of these played an important role, let us rather focus on how the SKU unit records goes. In the field of inventory management, a stock keeping unit or SKU (moregrammatically-correctly written with a hyphen as stock-keeping unit) is a distinct item, such as a product or service, as it is offered for sale that embodies all attributes associated with the item and that distinguish it from all other items. For a product, these attributes include, but are not limited to, manufacturer, product description, material, size, color, packaging, and warranty terms. When a business takes an inventory, it counts the quantity of each stock keeping unit. SKU can also refer to a unique identifier or code that refers to the particular stock keeping unit. SKUs are not always physical objects. Anything that can be sold separately from anything else has a stock keeping unit, such as extended Merchandising System – Product/SKU Records Module Page 8 warranties, delivery fees, installation fees, and licenses. Other entity tracking methods, with varying regulations, are Universal Product Code (UPC), International Article Number (EAN), Global Trade Item Number (GTIN), and Australian Product Number (APN). On the following case studies, it all focused on how Information Technology Industry reached its helping hand to a certain market. Thus, shall disclose the profiles and the system being utilized by these companies with a goal to share a highly comprehensive way of how Information Technology links its various specializations toward the market systems. Most especially on the field of record creations with stock-keeping unit which prevails on at the back-end or on operational basis of the market. 2.1 RELATED LITERATURE 2.1.1 Foreign Literature 2.1.1.1 Vitamin Cottage Natural Food Markets, Inc. Vitamin Cottage Natural Food Markets, Inc (commonly referred to as "Vitamin Cottage" or "Natural Grocers") is a Colorado based health food chain founded in 1955 by Margaret and Philip Isely and now operated by their children. Natural Grocers are found in 13 states, mainly west of the Mississippi River. The company operates 65 retail grocery stores in Colorado, Texas, Utah, Oklahoma, Oregon, Kansas, Missouri, Montana, New Mexico, Nebraska, Idaho, Arizona and Wyoming with approximately 1,500 employees and new stores opening monthly. Products include vitamins, dietary supplements, natural and organic food, organic produce and natural body care products. The company is a longtime proponent of consumer education about health and nutrition, and runs an ongoing free lecture series with nutrition and health experts for both customer and employee education. Each store provides a free trained "Nutritional Health Coach" for its customers. All education activities are science-based, refer to most recent published studies, and not related to specific products or brands. The company filed an S1 registration statement with the SEC on June 18, 2012 under the name Natural Grocers by Vitamin Cottage, Inc. As of July 25th, 2012, the company is trading on the New York Merchandising System – Product/SKU Records Module Page 9 Stock Exchange under the ticker "NGVC". Investor information can be found here. The company is best known for its manifesto entitled "What We Won't Sell and Why", which is a list of substances not proven to be safe. These ingredients are not allowed in foods sold by the company even though government agencies approve of their use. This list includes artificial colors and flavors, artificial preservatives, irradiated food and meatraised using artificial hormones and antibiotics among others. All products ingredients and claims are screened by highly qualified review committees before being approved for sale. Only USDA certified organic fruits and vegetables are sold. The company differs distinctly from "gourmet natural smorgasbords markets" like Whole Foods in that it does not focus on promoting many indulgent, but often unhealthy and expensive, processed or prepared foods. As a consequence, its customers tend to be highly aware of and concerned with the link between a good diet and improved health, using the Natural Grocers stores as a "food pharmacy". In August 2009, Whole Foods acknowledged its longtime lack of focus on nutrition education and the link between diet and health, and vowed to repent its "gourmet luxe" market positioning. Many of the company's guidelines for ensuring product purity and quality, developed over many years due to the previous lack of existing government standards, were used as the foundation for the Dietary Supplement Health and Education Act of 1994 (DSHEA) legislation of 1994. Company founder Margaret Isely contributed to forming the precursor group that became the international trade group Council for Responsible Nutrition. The company maintains an active role in community education, regulatory affairs and scientific nutrition research. Natural Grocers is the only major grocery retailer operating "Bag Free" stores, asking customers to bring reusable bags for their purchases or take a recycled box in place of plastic or paper bags. The company also operates an all-green retail location in Northglenn, Colorado, employing geothermal heating and cooling among other features. The store uses net zero energy for heating and cooling the interior. All Natural Grocers locations (not just distribution centers) undergo third party audits of their organic handling and processing practices by a USDA-accredited organic certification agency and are USDA certified organic handlers/processors. The company operates in compliance with all National Organic Program rules. Merchandising System – Product/SKU Records Module Page 10 2.1.1.2 Super Target Super Target is a chain of hypermarkets that are about 174,000 sq. ft (16,200 m2) and feature double entrances on one-story stores. The first Super Target opened in Omaha, Nebraska in 1995, and the second Super Target opened in Lawrence, Kansas the same year. As of October 2008, Target operated 218 Super Target stores in 22 US states, the majority of which are in Texas and Florida, with sizable numbers in Minnesota and Colorado. Until 2006, the store logo spelled "Super" in green script, while newer locations are signed in red block letters in the Helvetica typeface in favor of a streamlined brand look. These stores offer everything found in a regular Target as well as a full grocery selection, fresh produce, bakery and deli, with most locations having a Target Optical. Many Super Targets feature Starbucks Coffee, Pizza Hut Express, Taco Bell Express, Target Pharmacy, The Studio @ Target (a portrait studio), Target Photo, Target Mobile (a Wireless kiosk), and a Wells Fargo Bank or U.S. Bank. In the past, some Super Targets featured an E-Trade trading station in place of a bank, though ETRADE removed all of their Super Target branches in June 2003 without any prior notice. Mitchell Caplan, ETRADE's CEO at that time, said that "We were not able to make it into a profitable distribution channel. We're better off exiting." ETRADE also sent a letter of notification to their customers informing them about this change. Select stores in Florida, Illinois, Maryland, Minnesota, North Carolina and Virginia have a new Target Clinic concept. Unlike other hypermarkets, such as most Walmart supercenters, Super Targets are not open 24 hours. Upon their internal procedures, however, even how perfect their system is; an employee especially the user of the program still needs to learn the basic knowledge for every data or information he/she is going to communicate with. Thus, here comes the strangest thing inside every POS system – the SKU. SKU or stock keeping unit keeps track of a product/stock, either for retail, trade, wholesale, reseller, bundle, etc. Inside the supermarket, a bottle of soft drinks is not the only soft drink inside the shelf but rather have a minimum number of 50 – 100 bottles displayed and all arranged with similar identifier but let us not generalize that a specific SKU is intended only for on and only Merchandising System – Product/SKU Records Module Page 11 product but rather designated for the whole other similar products made by the supplier if and only if it came from the same vendor (manufacturer) with the same size / color / shape / weight / volume, etc. 2.1.1.3 Fairway Market Fairway Market is an American grocery chain. Founded in the 1930s, it is one of the United States' highest grossing food retailers per square foot with 14 million customers per year. Fairway has had significant store expansion in the New York area, with 13 locations in the tri-state area including 13 food markets and 3 wine and spirit shops. The flagship store still occupies the original Broadway location at West 74th Street on the Upper West Side of Manhattan, with larger locations in Harlem; the Red Hook neighborhood of Brooklyn; Paramus, New Jersey; Plainview, Long Island; Pelham Manor, New York; Stamford, Connecticut; and Woodland Park, New Jersey. In 2011, Fairway expanded even further with two more locations: one on the Upper East Side of Manhattan, which opened July 20th, and the other in Douglaston, Queens, which opened on November 16th. In 2012, Fairway Market opened three more locations: Woodland Park, New Jersey on June 6, Westbury, Long Island on August 22 and in Kips Bay in midtown Manhattan in late December. The company currently employs about 4,000 people. Sterling Investment Partners bought a controlling stake in Fairway Market in 2007. In 2011, the chain had revenues of $550 million. It was spun off in an IPO on April 17, 2013, trading under its parent Fairway Group Holdings on NASDAQ under the ticker symbol FWM. Fairway's original store is at Broadway and West 74th Street. In January 2007, Sterling Investment Partners, Westport, CT private equity firm, acquired Fairway Market and committed to substantially expanding Fairway in the greater NY metropolitan area. Sterling made a $150 million capital investment in Fairway four years ago, and has thus far committed to in excess of $100 million for Fairway’s expansion, enabling Fairway to grow rapidly and generating 2,100 new jobs in the tri-state area in the last 18 months. Merchandising System – Product/SKU Records Module Page 12 2.1.2 Local Literature 2.1.2.1 Puregold Price Club – TP Linux POS System Puregold Price Club, Inc. is a chain of supermarkets in the Philippines established in 1998. It began in 1998 when Puregold opened its first branch in Mandaluyong City. Presently, it has grown into a retail chain with more than 50 stores nationwide. In 2012, Puregold Price Club Inc. acquired Parco. Over 19 operating outlets were purchased and converted to Puregold. Puregold is planning to open more stores as of 2012 to upgrade sales growth target. In 2012, the shareholders of the retail chain Puregold have approved the merger of the other two operating units into the parent company, consolidating Puregold's supermarket businesses under the publicly listed supermarket operator. On February, 2013, global investment firm Capital Group Companies (CGC) bought 5.4% total outstanding stock of Puregold. Aforementioned is a brief history of Puregold depicting on how the company grows as the years goes by. On the otherhand, as we all know, a supermarket is always been driven not only by their products and employees but also on what kind of point of sale system they used to have. According to the site of AGSB, Puregold Price Club utilizes a Linux-based Supermarket / Merchandising System. In behalf, Puregold is also the very first Filipino company to utilize a German firm’s open source-based software. TPLinux is one of the most flexible Linux-based store solutions available on the global market. Coupled with its versatility of use, outstanding integration mechanisms and the experience gained with over 50,000 TPLinux installations worldwide, TPLinux is ideal both for modernizing store IT and for migrating and using established POS hardware platforms. TPLinux is owned by Wincor Nixdorf, a German corporation that provides retail and retail banking hardware, software, and services. TPLinux has the capability to run on other vendors’ hardware as well as Wincor Nixdorf’s own systems. Through TPLinux, the smooth run of every Puregold Branches is continuous up to the present time. Merchandising System – Product/SKU Records Module Page 13 2.1.2.2 Robinsons Supermarket Corporation Established in 1985, Robinsons Supermarket has evolved into one of the largest supermarket chains in the Philippines. Apart from its commitment to provide shoppers the freshest merchandise and the most reasonably priced grocery goods, Robinsons Supermarket seeks to educate and empower its customers on their choice of food and products to promote healthy living and proper nutrition. The first major retailer to stake this promise, it is a bold, lifelong commitment to customers old and new to reach out and touch lives by bringing together healthy choices at affordable prices in one refreshing shopping destination that is Robinsons Supermarket. Behind Robinsons Supermarket Corporation success’, is their company’s robust Supermarket / Merchandising System. It is actually the hidden pride of every supermarket due to its various essential works, functionalities and processes concealed at the back of every employee. Robinson Supermarkets are not liable to create the SKU’s of each product / stock unless they are the supplier of their own sales. For an instance, a customer will buy a certain product; he/she will notice a barcode. And that barcode is the unique identifier of that specific product made only by the supplier. Different code for each suppliers or vendor, different date of manufacturing and different sizes/weight of each product will correspond to a different barcode stripes and number combinations. The reason behind these coding designation for each goods played an important role on how to conveniently throw codes from one supermarket branch to the main office and vice versa. It is not necessary and practical to encode the whole name of a certain product inside the Supermarket System because it will absolutely waste a lot of time and effort to promulgate such technique. Merchandising System – Product/SKU Records Module Page 14 2.1.2.3 Wellcom Telecom Supermarket (Philippines) Founded in 1945, Wellcom is Hong Kong's longest-established supermarket chain. Since 1964, the company has been wholly owned by Dairy Farm following the merger with rival supermarket Dairy Lane. Wellcom has an overall staff of 5,000 in more than 240 stores and serves more than 14 million customers every month. 1940's-50's Wellcom was established in 1945 by Mr. Wu Chung-Wai, Mr. Lau Lim and Mr. Ko Yin-Yu. Wellcom established its first store on Ice House Street in Central. The shop specialized in imported products including wines, biscuits, canned food and beverages. Wellcom was the first supermarket to establish a Home Delivery Service division, and an average of 600 customers enjoyed this one-of-a-kind service through orders in person daily. 1960's-70's Wellcom became a member of The Dairy Farm International Group in 1964. Wellcom was the first to introduce a "self-service" retailing concept. Customers no longer require the assistance of service staff to get products; they can personally select products from the shelf. Wellcom was the first to offer pre-packaged rice products in 1973, offering consumers a convenient and hygienic choice to purchase rice. 1980's-90's Wellcom launched its first corporate brand "No Frills", offering customers over 300 products at the lowest prices as compared to other products in the same category. Wellcom was the first supermarket to employ Electronic data interchange (EDI) technology to improve the efficiency of operation. Wellcom pioneered the 24-hour supermarket concept in Asia and set up its first 24-hour store in Great George Street, Causeway Bay on 23 October 1998. Wellcom established its second corporate brand, First Choice, with a product range of over 1,000 items. With prices at 20-30% less than competitive international brands, it is a well-known brand in Hong Kong. A $400 million investment, "Wellcom Fresh Food Centre" was opened in 1998. Occupying an area of 161,000 sq. ft., it is the top, state-of-the-art fresh food-processing centre in Asia, ensuring quality, safe and efficient supply of fresh food. 1992's-98's, Wellcom Hong Kong to become the first to use the UPC system in Hong Kong supermarkets, offers a more efficient and more convenient payment services. Merchandising System – Product/SKU Records Module Page 15 According to the report of 2004-2008, Wellcom supermarkets and thus increase the number of branches. The New Millennium Wellcom introduced the "Vote for Your Favorite Brand" campaign in 2000 and it has been a successful annual consumer event ever since. Wellcom opened the first ultra-modern superstore at Town Plaza. The Wellcom superstore introduced a new "one-stop" shopping service, embracing the concepts of both wet market and grocery shop under one roof. Wellcom announced its double refund offer with lowest price guarantee by doubling the difference back to customers. Wellcom unveiled its Stanley store in January 2003. It is the first supermarket located inside a 100-year-old historical building - the old Stanley Police Station. Wellcom Telecom Supermarket, Inc. also sprouts its branch in the Philippine Territory – Wellcom Telecom Supermarket Phil. And as the research goes, among some of the offered functions enabled by their Merchandising System are as follows: (1) web – based reports and alerts such as up to the minutes sales figures or alerts on product returns, (2) emailed reports scheduled by a customizable interface menu, (3) customer service related functions such as speed of service monitoring, (4) frequent shopper programs supported by POS data, and (5) accounting and other back office functions that have eliminated the need for back office data entry positions. The said POS System has a great variety of functionality that can be effectively integrated into the back office functions of any enterprise. Back office refers to procedures performed out of the view of customers. Among some of the most common back office functions are the following: a) inventory tracking and real-time updating based on sales movement as indicated by POS data, b) the selling of products in inventory even beyond product that is on the shelf or on display, c) reordering and fulfillment system integrated into the POS System based on inventory movement, d) product sign in and reception recorded through the POS system, e) employee scheduling and time keeping, and f) accounting functions such as total sales, part of day sales, and account reconciliation. Merchandising System – Product/SKU Records Module Page 16 2.2 RELATED STUDIES 2.2.1 Foreign Studies 2.2.1.1 Vitamin Cottage Natural Food Markets, Inc. SAP POS Point of Sale is the merchandising system being utilized by the company. It has long-defined as the standard of excellence in the POS industry. SAP POS meets the needs of a wide variety of retailers. Retail customers include department, hard goods, convenience stores, liquor, specialty, apparel, big box, and a number of other retail verticals. Additionally, the solution is offered with powerful back-office applications, for in-depth, store-level management and reporting. SAP POS consists of a store server with cash register terminals or other devices. With SAP POS, Vitamin Cottage Natural Food Markets is satisfied with the following benefits: -Unmatched flexibility - Retailers can quickly and easily configure SAP POS, thanks to an easy-to-use configuration tool and business rules engine, which contains more than a half million options. -SAP POS business rules can be easily modified without custom programming; it easily adapts to retailers' changing needs and provides a low TCO. -Versatile deployment - SAP POS is available for deployment at the register, in kiosks, through e-commerce and, importantly, through mobile devices. -Multiple levels of system redundancy to weather the realities of retail -Multiple application extension points - connect your store system to other internal or external specialized solution environments while maintaining your core, standard POS implementation. 2.2.1.2 Super Target The Toshiba SurePOS 500 is the current system of Super Target. It employs a highly efficient Intel processors (Model 570 and 566) and efficient power supply that save on energy costs. Plus Toshiba’s innovative deep sleep, when enabled by Toshiba Remote Management Agent, can cut energy use by up to an additional 47 percent. The Model Merchandising System – Product/SKU Records Module Page 17 570’s 80 Plus Gold Power Supply offers even greater energy savings with the potential for an additional 11 percent. Available Solid State Drive (SSD) options on the Model 570 and the Model 566 provide the latest in storage technology. SSDs eliminate all moving parts and motors used in conventional Hard Disk Drives (HDD) and thereby deliver faster performance while consuming less power. The Model 570 comes standard with choice of (1) 500 GB SATA2 HDD or (1) 64 GB SSD. Optional upgrade to a 2nd 64 GB SSD is available on the Model 570.Environment friendly packaging includes high-density polyethylene (HDPE) inserts made from recycled post-consumer waste, saving space for energy and cost-efficient shipping and disposal. Box and inserts are 100 percent recyclable 2.2.1.3 Fairway Market Fast, reliable, easy to learn and use, intuitive and touch-screen based, the ETP Store is a retail software that makes your point-of-sale a point-of-delight at the retail store for both your customers and your counter staff. The ETP Store retail solution makes it easier to reduce user errors and lower your operational costs. Allowing you to bill, exchange, return, order, tender and search for inventory across stores and warehouses, the ETP Store POS software also effectively incorporates a comprehensive retail CRM Software and CRM solution and provides service levels at the storefront for tracking customer buying patterns. You can also efficiently manage promotions designed in ETP Accelerator seamlessly through this point of sale solution. ETP Store is 100% Java based, platform independent solution that is a robust and flexible system, capable of high volume transactions that can fit within various corporate environments leveraging your company's existing IT infrastructure. Merchandising System – Product/SKU Records Module Page 18 2.2.2 Local Studies 2.2.2.1 Puregold Price Club, Inc. According to the list of accredited machines as utilized by several companies, Puregold is one of those companies that utilize a program called JDA WINDSS. While point-of-sale (POS) systems are critical to Puregold’s success, some of their recent supermarket systems cannot efficiently handle the scale and complexity of multiple channels, complex promotions and constantly changing pricing strategies. Further, inefficient back-office processes often hinder their effective inventory management. Thus, after Puregolds’ upgrade to JDA, it leverages a powerful pricing engine, enterprise-wide visibility into inventory levels and easy cross-channel access to customer information and orders while providing an integrated solution for comprehensive store-level inventory management. Although today, some Puregold branches are now shifting to a different kind of system coming from the famous company of IBM, still JDA WINDSS left a rising trademark of PPC that lasts. 2.2.2.2 Robinsons Supermarket Corporation The IBM 4694 was one of IBM's PC based point of sale (POS) systems, successor to the IBM 4683 and IBM 4693; and RSC’s powerful Point-of-Sale System. Introduced in 1991, the 4694 became a flagship model for the company's SurePOS system. The system consists of a PC-based controller (thin client), and POS workstations—typically an IBM keyboard and monitor, or touch screen. The system requires the IBM 4694 computer which is used as a "Controller", or also more or less, as a server on the network. The controller can be set up to boot from a floppy disk, or from a main server on a network. The 4694 was a best-selling POS System, widely used in most large chain stores such as supermarkets, department stores and restaurants. That’s why Robinsons Supermarket Corporation is enticed to use such POS platform. As IBM 4694 offers commercial security, convenience, reliability and immense functionalities, RSC is proudly convinced to choose such product to be their partner to serve their thousands of customers. Merchandising System – Product/SKU Records Module Page 19 2.2.2.3 Wellcom Telecom Supermarket (Philippines) Zhejiang Wellcom Technology Co., Ltd was established in 1999, which specializes in manufacturing fingerprint products. The company does not only sell devices, but also solutions. Their specialized products include fingerprint scanner, fingerprint reader, fingerprint UKEY, fingerprint module, fingerprint controller, fingerprint access control, fingerprint safe and fingerprint locks etc. As a supplier of core technology, product and solution, Wellcom has become the leading enterprise in the biometric identification industry. At all times, Wellcom has devoted itself to research of biometric product and solution with fingerprint identification technology and vein identification technology as core technology. The company owns more than 40 patents and more than 20 high-tech results. All products of Wellcom have been widely used in fields like finance, transport, telecommunication, E-government, etc. They fall into two types, namely, information security products and security products. The former includes: bank teller ID authentication products, driving training school products, fingerprint scanner, fingerprint reader, fingerprint UKEY, fingerprint mouse, fingerprint USB drive, fingerprint network management system; the latter includes fingerprint module, fingerprint access control, fingerprint time attendance, fingerprint locks, fingerprint cabinets and safes etc. All of these products own independent intellectual property rights entirely and now have been widely used in banks, army, transportation, telecommunications, hospitals, E-government and schools, also civil market and companies, to name just a few. Wellcom adheres to the cooperation strategy "integration of resources and sharing of the value", combining the best application practices of the identity authentication and information protection in all industries, thus providing a broad "win-win cooperation" platform for the world's agents and dealers. Merchandising System – Product/SKU Records Module Page 20 2.3 SYNTHESIS AND SIGNIFICANCE OF THE STUDY After a thorough study on different local and foreign market cases; as apportioned by different proprietors of software technologies; as handlers of the common market process/system that barely determine that there are matters which are similar into these diverse mechanism – and these are the objectives that was initiated; to develop market processes which often define an automated sales of inventory and record creation, maintenance and routing and regeneration, accounting systems, etc. As focused on record creation with SKU, almost all organizations, as stated in the study, has their own way of creating, formatting and formulating this SKU-codes, which is oftenly depends on the market’s products and services. Therefore the conclusions aroused with the help of various stitches of literatures and studies as stated above are as follows: SKU’s are internal product and service identifiers which are defined by the common supplier of the product or the market itself, create such SKU‘s for their own reasons. SKU’s may vary across different supermarket and merchandising facilities. SKU’s are based on generic to specific standard which depends on the kind of market system. Formulating of SKU code or numbers came from the product or service attributes with allocation identifiers, product category, type and its corresponding stockkeeping facility that is trailed by the product’s price or cost. On the other stories researched pertaining to Supermarkets: A conventional supermarket is a self-service food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise. Perishables like meat and produce account for 50 percent of supermarket sales and typically have higher margins than packaged goods. Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets, or extreme value food retailers, only stock about 1250 SKUs. The two Merchandising System – Product/SKU Records Module Page 21 largest limited assortment supermarket chains in the United States are Save-A-Lot and ALDI; a firm that makes Wal-Mart seems luxurious. References: http://en.wikipedia.org/wiki/IBM_4694 http://wellcomtec.ecvery.com/profile.html http://www.jda.com/solutions/jda-store/ Merchandising System – Product/SKU Records Module Page 22 CHAPTER 3 ANALYSIS AND DESIGN 3.1 SOFTWARE REQUIREMENTS SPECIFICATION 3.1.1 Introduction Product / Stock Keeping Unit-Record Creations system is an application intended for product record creation of a supermarket or merchandising firm. It provides such convenient ways in creating article of a certain product, which defined in terms of SKU’s or an SKU codes, capable on giving less information in a high dense quality of data for further utilization on a high-end fast growing merchandise or market business. With the system’s friendly yet professional looked GUI or Graphical Unit Interface, the users may experience much easier access to the software, provided that these users have enough authentications to utilize the system on its dedicated functions. As it offers comprehensible terms, user-friendly interface, and secure storage of data; every user might not have to attend seminars, trainings or tutorials just to attain his/her familiarization on how to use the program. Furthermore, it also lessens the work behind tracking of product, records statusesand even trailing of such histories essential for auditing tasks and, etc. Therefore, this can save the business’s thousands of money in many ways; as it increases the profit, it also decreases the work load exerts by the firm itself. 3.1.1.1 Goals and Objectives Goals and objectives are always synonymous as it signifies a successful ending point of every milestone. But this ending point will just serve as the beginning of a new project. Developing SKU system is not just a stereotype of a previous one but a high level and improved kind. This is the introductory part of the product/stock-keeping unit system. It will highlight the requirements, and insights interest from various stakeholders involved in the business of merchandising. As the name goes, it will play an important role of record creation and record keeping and will later benefit the customers, the employees and the company’s several retailing tasks at its different perspectives. It eases the manual Merchandising System – Product/SKU Records Module Page 23 retrieving and storing of thousands of information and also provides an accurate tracking of available product. All of the SKU processes will be depicted through modeling diagrams resulting for a much comprehensive illustration of the said application. Descriptions and further discussions on how the system will go through are also appended along with its various requirements. Different ways on how to convey stock-keeping flows will be stressed out in order to attain clear understanding with regards to what SKU offers. However, the prime goal is to reach every ones expectations, goals and objectives necessary to implement a productive stock-keeping. 3.1.1.2 Statement of Scope The following discussions will enlighten the process, significance and descriptions involved with the stock-keeping unit system. It includes both external and internal factors that contribute for the input, process and output of the software. This will also serve as the system guide, basis and foundation in order to fulfill the goals and objectives of a stockkeeping unit application. Let us first consider these scenarios: (1) merchandise arrives at the store from the supplier or vendor and has been pre-marked with the appropriate price and item identification information; (2) the store is the one who supplies the prepared tickets and the store is the one who supplies the prepared tickets and the vendor put them on the merchandise; the vendor both prepares and attaches the tickets; (3) the price is nationally advertised one that the manufacturer has printed on the package. All of these scenarios supplies stock-keeping unit records that are needed by the system. The only difference upon the system is that it processes these information in a more refined, secured, convenient, and identifiable form depending upon the supermarket/merchandising firm. Now, in order to access the stock-keeping unit system, the employee will be prompted by the system to enter his/her username and password; wherein the employee is either an administrator with full access grant or simply a user with authenticated privileges. Afterwards the first move would always be given to administrator in order to perform manipulation. Upon the purchase order or delivery of merchandise has been done, Merchandising System – Product/SKU Records Module Page 24 by then the administrator would be given an option to either retrieve or create a standard format for SKU records. It will either support the default categorization of the SKU code (merchandise classification ID, department ID, manufacturer ID, brand ID, style ID, color ID, and the size ID), barcode (scanned by a barcode scanner or reader), description (provided by the manufacturer), category code (merchandise classification ID and the department ID) and the packaging number (the number of merchandise received and checked per package). Upon the successful recording of product information available inside the market, the system will then automatically save the dates needed to estimate the duration of specific merchandise. By then it would be possible to print tickets, tag and labels for items or shelves. (And it would be clear to identify printed product information). And the reports generation would be based on each category that can be sorted either by similar manufacturer, similar classification, similar department, similar date, and even similar packaging number. It would also be possible to track merchandise ten days before the printing date and on what aisle it was placed. It would also be helpful to verify the number of products being received, checked and marked at a specific date. Generally, stock-keeping unit system will support meet of the administrator’s and user’s preferences especially upon searching, sorting and filtering merchandise records of information. Aforementioned system manipulations like creating, retrieving, adding and editing are only allowed for administrators. Otherwise the user is not allowed but both granted for system searching and viewing only. On the other hand, both administrators and users of the stock-keeping unit system will be granted to leave a business notes for their comments, reminder, suggestions, question, etc. It will serve as the message box necessary for the whole run of the SKU records system. Thus, the following table further defines the scope of the system through these enumerated user requirements. Each requirement is assigned with three levels of priorities: (1) High priority must be implemented; (2) Medium priority can be implemented; while (3) Low priority may be left out. Merchandising System – Product/SKU Records Module Page 25 User Requirements for the Product or Stock Keeping Unit Subsystem Project Req. No. Priority Reference Description Access Privileges There shall be two levels of access; (1) for R1 High Customer managers and/or supervisors as Administrator (2) for assistants, clerks and/or regular employees as User. Only the Administrator shall retrieve R2 High Customer necessary data from warehouse and/or store inventory control. Only the Administrator shall R3 High Customer add/edit/modify the stock keeping unit or SKU code of each product/stock package. Only the Administrator shall R4 Medium Customer add/edit/modify the category code of each product. Only the Administrator shall R5 Medium Customer add/edit/modify the package number of every product. The Administrator shall be allowed to view R6 High Customer and print daily, weekly, monthly and annual product reports. Only the Administrator shall be allowed to R7 High Customer view and print shelves and product label display R8 High Customer High Customer All employees shall be allowed to view the SKU subsystem. Security R9 Administrator and User shall be required to log on with a unique username and Merchandising System – Product/SKU Records Module Page 26 password in order to access the system. R10 Medium Customer R11 Low Customer The username and password shall contain 8-20 alphanumeric characters. Both username and password shall be in caps lock. The username shall be the last name of the R12 Low SKU employee plus the initial/acronyms of his/her position. SKU R13 High Customer R14 High Customer R15 Medium SKU The Administrator shall only be allowed to create or edit stock keeping unit records. The SKU shall consist of 6-digit code. The system shall prompt the administrator for invalid SKU code. The administrator shall add/edit SKU R16 Medium Customer directly through a table or through a dialog box. Barcode / Description The administrator shall be allowed to R17 High Customer retrieve product barcode/description via barcode scanner/reader and/or through the other subsystem. R18 High Customer R19 Medium Customer R21 High Customer R22 High SKU The barcode or description of a product shall be editable. The administrator shall be allowed to create a barcode for a certain product. The barcode must consist of 13-digit code. The system shall prompt if the user enters invalid barcode. Category Code Merchandising System – Product/SKU Records Module Page 27 R23 High Customer R24 High Customer R25 Medium Customer R26 High Customer R27 High Customer The administrator shall add/edit the category code. The category code shall categorize each product by code. The administrator shall define the category codes. Packaging No. The administrator shall input the packaging number. The packaging number shall be the number of products inside each package. SKU Records The SKU records shall consist of the following information: 1. SKU Code R28 High Customer 2. Barcode 3. Description 4. Category Code 5. Packaging Number 6. Date R29 High Customer R30 High Customer R31 High Customer R32 Medium Customer R33 High Customer The administrator shall be allowed to both view and print all SKU record reports. The user shall only be allowed to view all SKU record reports. User Interface The system shall be LAN-based interface that works with different platforms. The background color of SKU subsystem shall be black and white. The system shall respond to all user requests within 20 seconds. Merchandising System – Product/SKU Records Module Page 28 3.1.1.3 Software Context Stock-keeping helps everyone; the management, the buyer, the salespeople, the cashier and of course the customer. Based on a book entitled retailing management, efficient stock-keeping helps management do its job. Efficient stock keeping helps management do its job. Merchandise represent money invested. It must produce sales at a minimum expense of selling. If merchandise is in the right location, customers can find it and buy it. More important, if stock is in good condition, it will probably sell quickly. This means that management receives sales with which to pay for the goods within a reasonable amount of time, to buy replacement merchandise without delay, or to buy fashion or specialty items that attract new sales between major changes in merchandise lines, Good stock keeping also helps the floor salespeople do their job and increase their own commissions. It is difficult to make a sale if goods are soiled or in poor condition, but well-stocked displays of merchandise encourage customers to buy. Good stock keeping helps reduce the amount of goods returned because customers who can find the right style, size, and color are usually satisfied with their purchase and will not return it. If they cannot find what they really want and buy damaged goods or something they are uncertain about, they will often return their purchase. This results in expense for the store and sometimes, in ill will. In self-service retailing, the stock is not on the way in which it is arranged are the “salesman” if stock is not on the floor, it cannot sell itself. If it is in the wrong place, it misses opportunities to catch the customer's eye. If it is not fresh and attractive, it will not convince the customer to buy. Stock must be replenished daily and may have to be brought forward from the stockroom to the point of display several times on every busy day. Stock keepers use a basic book list that shows the minimum amount of each item that must be on hand. The minimum is based on average sales over a period of time. When shelf stocks are replenished, the merchandise should be checked to see that the articles are correctly. These labels should be checked to see that the articles are correctly priced. Merchandising System – Product/SKU Records Module Page 29 When shelves are restocked, the stock is rotated. Rotating the stock means that older merchandise is always brought to the front of the shelf or to the top of the stack. This is called the “First-In First Out” method, or FIFO. It is important because older stock left on the shelf becomes shopworn or stale; it is difficult to sell and may result in a loss for the store. Customers like to choose from an adequate assortment of goods. Well-filled racks and shelves make them feel they are being offered a wide selection of merchandise. Customers also want to buy stock that is fresh and clean. They are interested in the latest styles and do not want leftovers from last season unless a big price reduction is offered. If a store does not offer them these things, they will not patronize the store. In other words, good stock-keeping is a vital part of the total impression the store makes on its customers. It is one way of preventing loss of trade to competitors who carry similar lines of merchandise. After all stock keeping unit records system simply translates organize and document the aforementioned benefits of good stock-keeping. For the management, it aids decision making processes through visual basis and reports. For the salespeople, it lessens the work and time required for each day of service and for the customers, it offers satisfaction upon the purchase of their quality merchandise. 3.1.1.4 Major Constraints The SKU system will synchronize and unite with the other significant subsystems. Thus, the integration must form a full package of a Supermarket or Merchandising Information System with compact and interrelated database; normalized and without any issue. Merchandising System – Product/SKU Records Module Page 30 3.1.2 Usage Scenario 3.1.2.1 User Profiles The following actors and definitions will draw the procedural flow of the SKU subsystem’s business processes: Administrator An administrator has the full access for the whole run of the system; even capable of giving or creating various grant privileges on any other users. It may represent the managers, supervisors, department head or any other position with equivalent administering tasks. He/she is the one responsible for adding new user; modify user profiles and user statuses. Employee Any personnel inside the organization granted with privileges to utilize the system’s functionalities. System It refers to the tangible and intangible computer components constrained to execute a productive Supermarket/Merchandising Information System. Specifically on this case the Product / SKURecord Creation System. Database Server A computer system locally or remotely allocated on such organization that utilize this SKU system, having complemented software and hardware components which in capable of giving various services in doing database management. 3.1.2.2 Use - Cases The following use-cases define the transactional and procedural interactions between the external environment and the internal software system. Each use-case is described in section 3.1.2.2.2. 1. Log onto system 2. Create new User 3. Modify Users Merchandising System – Product/SKU Records Module Page 31 4. Add or Retrieves Products information. 5. Create and modify Product Classification or Categories 6. Update Price 7. View Product details 8. Print Product details 9. Create Reports 10. View report 11. Post business notes 12. Read business notes Merchandising System – Product/SKU Records Module Page 32 3.1.2.2.1 Use - Case Diagram Figure 1 Use-Case Diagram of Product/SKU Records System 3.1.2.2.2 Use - Case Description Use - case: Log onto System Primary Actor: Employee Goal in context: To gain access to the subsystem Merchandising System – Product/SKU Records Module Page 33 Preconditions: The employee has a valid username and password. Trigger: An employee needs to access the product/SKU subsystem to perform their tasks. Scenario: 1. The Supermarket or Merchandising Information System prompts the Employee for their username and password. 2. The Employee enters their username and password. 3. The system sends the username to the Database Server. 4. The Database Server sends back the password registered to the username. 5. The system verifies the password and sets the users authorization. 6. The Employee is given access to the System to perform their tasks. Exceptions: The username and password cannot be verified and/or unauthorized. Use - case: Create New User Primary Actor: Administrator Goal in context: To create new user that can be utilized by the system for more productive purposes. Preconditions: The Admin must supply an apropriate and complete set of user information to the system, such as Usernames, Passwords, First and last Name of a user, Contact number, email, Position so forth and so on. Trigger: The system needs user to create various task and enable the system to its productive mode. Scenario: 1. A user will log on to the system and later be authenticated as an administrator. 2. The Admin will choose the user maintenance tab; then began inserting information into user fields. 3. All fields must be filled up, upon creating new records. Merchandising System – Product/SKU Records Module Page 34 4. The system, then prompts a dialog information that the record has been added successfully; else the system will prompt an alert dialog saying that record adding is un successful. Exceptions: All fields must required to be filled up. Email format is invalid either not existing. Use-case : Update record status Primary Actor : Administrator Goal in Context : To update an record statuses at present date without modifying the records of the previous dates. Pre Conditions : An SKU record has previously entered stored. Trigger : Some SKU information required changes as time goes by. Scenario : 1. The administrator logs onto the system. 2. The administrator selects SKU from the main menu. 3. The administrator locates the existing product through the search engine. 4. The system request & retrieves SKU record from the database server. 5. The administrator selects the product from the search results. 6. The administrator hits the edit button and updates the required modifications. 7. The system prompts the administration to either save or cancel changes. 8. If the administrator saves changes the system will not change the previous records but rather updates a new record at current date & time. 9. The administrator’s employee ID number , the date/time , and nature of the change are logged. 10. The administrator receives confirmation that the information Merchandising System – Product/SKU Records Module Page 35 was saved. Exceptions: Use-case : Enter business Notes Primary Action : Employee Goal in Context : To enter business notes that will serve as a reminder, comments, questions or suggestion from each employee. Pre conditions : Each note is not more than 100 characters. Trigger : To convey significant messages from one employee to another. Scenario : 1. The employee log onto the system. 2. The employee selects the SKU from the main menu. 3. The employee enters business notes from the textbox at the lower part of the subsystem. 4. The system stores the message on the database server. 5. The employee’s username and date / time are logged. 6. The employee receives confirmation that the message was saved. Exceptions : Use-case : View report Primary Action : Administrator Goal in context : To view a report Preconditions : SKU records required for the report has previously been entered. Trigger : An administrator decides to view a summary of SKU records per day , week , month or year. Scenario : 1. The administrator logs onto the system. 2. The administrator selects the SKU from the main menu. 3. The administrator has an option to view reports by either searching or sorting by date and then hitting the view button. 4. The system displays the report on the screen. Merchandising System – Product/SKU Records Module Page 36 5. The administrator has an option to close or print the report. 6. The report is closed or printed SKU. Exceptions: Use-case : View Product Details with SKU codes and Barcodes Primary Actor : Employee Goal in Context : To view each / all product information available. Pre-Conditions : Information required for the SKU record has been entered. Trigger : An employee monitors the accuracy of each product / SKU information. To monitor and maintain accuracy for entered product. Scenario : 1. The employee logs onto the system. 2. The employee selects SKU from the main menu. 3. The employee selects the desired product(s) to view. 4. The employee has an option to view SKU records by simply hitting the view button or double clicking the selected product from the table display. 5. The system requests the SKU record from the database server. 6. The SKU records are displayed on the screen. 7. The administrator has an option to print SKU records as a product / shelves label display. 8. The employee has an option to close the view SKU records. Exception: Merchandising System – Product/SKU Records Module Page 37 3.1.2.3 Special Usage Considerations Printing date cannot be modified SKU code, Barcodes and ID’s are automatically generated by the system, nullified value in contrast of such ID’s or other automatically generated codes may negate a validity of a record. Date and time during SKU/product information retrieval or creation shall cannot be changed nor modified. Dates such as input/output timestamps are disabled for user intervention for added integrity purposes and used for trailing history, audits and other documentations that the system will generate, thus system date and time settings and system’s local time zone shall set accordingly in order to utilize date features accurately in just and reliable way. Merchandising System – Product/SKU Records Module Page 38 3.1.2.4 Activity Diagrams The following activity diagrams illustrate the actions that occur during a particular use-case. Figure 2 shows the steps taken as the employee logs on to the supermarket or merchandising information system. Access is only granted if the entered username and password are correct. Otherwise, access is denied and needs to retype for another prompt of username and password. Upon the access granted, there will only be two levels of authorized: Administrator – full access; User – limited access of system features and functionalities. Prompt for username and password Enter username and password Verify password [incorrect] Access denied [correct] Access granted Figure 2 Activity Diagram for Logging onto the System Merchandising System – Product/SKU Records Module Page 39 Figure 3 shows how the administrator adds a specific category onto the system. Employees can only view the category table but the administrator has the ability to add and modify the category table. Figure 3 Activity Diagram for Adding Category onto the System Merchandising System – Product/SKU Records Module Page 40 Figure 4 shows how the administrator adds a specific classification onto the system. Employees can only view the classification table but the administrator has the ability to add and modify classification table. Figure 4 Activity Diagram for Adding Classification onto the System Merchandising System – Product/SKU Records Module Page 41 Figure 5 shows how the users view, search and generate print outs of product details. All authenticated user has a grant privilege to view, search and print all product information required that all their actions in this class may be recorded by their session and can be viewed by the system’s administrator for auditing tasks. Figure 5 Activity Diagram for Viewing, Searching and Printing of Product Details Merchandising System – Product/SKU Records Module Page 42 3.1.3 Data Model Description 3.1.3.1 Data Objects Group Data Object GroupID. A unique identifier for product’s group designation. GroupDescription. The product’s group description: (1) Food 1 – Dried Foods, (2) Food 2 – Snacks and Beverages, (3) Food 3 – Health and Beauty, etc. Classification Data Object ClassificationNo. A unique number for identifying product’s classification. GroupID. The product’s unique group identification number. ClassificationName. The product’s classification name: (1) Personal Care Product, (2) Baby Product, (3) Cleaning Product, (4) Snack, (5) Beverages, (6) Condiments, (7) Sauces, (8) Herbs and Spices, (9) Canned Goods, (10) Dairy, (11) Noodles, (12) Bundles, etc. ClassificationDescription. The product’s classification further description. ClassificationStatus. The product’s classification status, either active or inactive. Category Data Object CategoryNo. A unique number for identifying product’s category. GroupID. The product’s unique group identification number. ClassificationNo. The product’s unique classification number. CategoryName. The product’s category name: (1) for the personal care product classification, categories are as follows – cleansing bar soap, conditioner, deodorant, Merchandising System – Product/SKU Records Module Page 43 shampoo, toothpaste, mouthwash, feminine wash, lotion, alcohol, sanitary napkin, powder, facial wash, facial cleanser (2) baby product – diapers (3) cleaning product – dish soap, insecticides, bleach, fabric conditioner, household use, laundry detergents (4) snack – biscuits and cookies, chips and crackers, chocolates, candies, dried fruits (5) beverages – coffee, chocolate drinks, tea, soda, tetra packs, juices (6) condiments – mayonnaise, catsup, dips, cooking oils (7) sauces – spaghetti sauce, hot sauce, soy sauce, vinegar (8) herbs and spices – broth, seasonings (9) canned goods – fish, corned beef, vegetables, fruits, meat (10) dairy – cheese, spreads, milk (11) noodles – spaghetti noodles, cup noodles, instant noodles; and many other categories for other various classifications. CategoryDescription. The product’s category further description. CategoryStatus. The product’s category status, either active or inactive. Product Data Object ProductID. A unique identifier for a specific product. GroupID. The product’s unique group identification number. ClassificationNo. The product’s unique classification number. CategoryNo. The product’s unique category number. ManufacturerID. The manufacturer’s assigned identification number. ProductName. The product’s complete commercial product name. QPU. The product’s package quantity per unit (i.e., 50 grams x 25 pieces per package) ExpirationDate. The product’s expiration date. Intime. The product’s date and time entry inside the supermarket or merchandising company. Merchandising System – Product/SKU Records Module Page 44 Manufacturer Data Object ManufacturerID. A unique identifier for product’s manufacturer. Manufacturer. The manufacturer’s complete company name. ManuTele. The manufacturer’s telephone number. ManuAddress. The manufacturer’s current address. ManuLName. The last name or surname of the manufacturer’s contact person. ManuFName. The first name or given name of the manufacturer’s contact person. ManuContact. The contact person’s current cellphone or telephone number. Email. The contact person’s current email address. ManuPosition. The contact person’s position inside the firm. Status. The contact person’s current status, either active or inactive. User Data Object UserID. A unique identifier for each system user. Username. The username given by each system user. LastName. The user’s last name or surname. FirstName. The user’s first name or given name. MiddleName. The user’s middle name. Position. The user’s current position inside the firm. ContactNo. The user’s current contact number. Email. The user’s current email address. Merchandising System – Product/SKU Records Module Page 45 Password. The user’s authentic and unique password. UserLevel. The user’s access level upon the usage of the system. Status. The user’s current status, either active or inactive. Note. The user’s left business note. 3.1.3.2 Relationships The product description table is the most significant entity for the whole SKU system. It drives and connects various tables of codes necessary to define stock-keeping unit records. Let us start with what table it all first start, each product will be connected with a unique SKU code, Barcode, Category code and package number and this will create a one is to one relationship. For an instance, a unique personal care product of Brand X alcohol 10ml will be assigned with a unique SKU code. SKU code will not accumulate unless it denotes similar product description on the other hand, SKU code is created by the integration of seven tables unique ID (classification, department, manufacturer, style, model, color, & size) Wherein each product will also create a one is to one relationship for each of the seven aforementioned tables, However their it is possible to have many products related with one and only one kind of category and the rest will represent a oneto-one relationship. Because as the definition goes “SKU is a unique identifier assigned with each kind of product or merchandise” Thus, it also emphasizes that it can only be manipulated by an employee one at a time per SKU records, business note and/or reference; Again one-to-one relationship exists. Merchandising System – Product/SKU Records Module Page 46 3.1.3.3 Complete Data Model The relationships between the data objects or described in section 3.2 are illustrated below. Figure 3.1.3.3a Relationship Diagram for the Stock-Keeping Unit System Merchandising System – Product/SKU Records Module Page 47 3.1.4 Functional Model Description 3.1.4.1 Class Diagrams Figure 3.1.4.1a Class Diagram for the Stock-Keeping Unit System 3.1.4.2 Software Interface Description 3.1.4.2.1 External Machine Interfaces Retrieving product information and printing reports will require two external machine interfaces in order to maximize efficient utilization of the SKU system. First, the software will be capable to retrieve product barcodes and descriptions via barcode scanner or reader. Second, printing reports will be enough through a local or network printer. Merchandising System – Product/SKU Records Module Page 48 3.1.4.2.2 External System Interfaces The SKU system will be integrated with the other nine significant subsystems (warehouse inventory, purchase order management, store inventory control, replenishment, and allocation, point of sale, price management, & good receipt). Upon the integration, it will then be considered and called as a generic version of a supermarket/merchandising information system. Abovementioned systems including the stock-keeping unit records will communicate with each other via online database server wherein relevant information between these systems can always be available and accessible. 3.1.4.2.3 Human Interface The Java-based user interface shall be ready to respond at its complete navigation through the aid of both keyboard and mouse. 3.1.4.3 Reports 3.1.4.3.1 Inventory of Reports Complete Product list with SKU codes and Barcodes Product reports according to product category, product classification, product group and product prize. Report documentation of user trail activated histories. Merchandising System – Product/SKU Records Module Page 49 3.1.5 Behavioral Model Description 3.1.5.1 Description for Software Behavior 3.1.5.1.1 Events ProductDetail Class Events Product Class Events Printing of Product Details Adding New Products Updating of Product Details Modifying Products Retrieving of Product Details Generation of Product lists Sorting of Product Details by Category Sorting of Products by Category Sorting of Product Details by Classification Sorting of Products by Classification Sorting of Products Details by Price Sorting of Products by Price Sorting of Products Details by Group Sorting of Products by Group Searching of Products Details by Category Searching of Products by Category Search Products Details by Classification Searching of Products by Classification Searching of Products by Price Searching of Products by Price Searching of Products by Group Searching of Products by Group Retrieving Products information Category Class Events Supplier Class Events Adding new category Adding new Supplier Modifying existing category Updating Supplier’s status Updating category status Modifying existing Supplier’s info’s. Classification Class Events User Class Events Adding new Classification Adding new User Modifying existing classification Updating User’s status Updating classification status Modifying existing User’s information 3.1.5.1.2 States Merchandising System – Product/SKU Records Module Page 50 Product details state Retrieving Products with SKU codes and barcodes has been retrieved successfully Updating Newly added product has been updated with sinificant code headers. Printing States that Product details are ready for printing. Product States Retrieving Product information, updates, description and price has been retrieved from store inventory’s database while price updates has been retrieved from price management’s database. Adding New products has been added by the user. Updating The product has been modified by an administrator and updated succesfully. Category States Adding New product category has been added succesfully. Updating The category has been modified and updated succesfully. Classification States Adding New Product Classification has been added successfully. Updating This classification has been modified and stated that it has been updated successfully. Users States Adding New Users has been added successfully. Updating Users status has been modified and stated that it has been updated successfully. Merchandising System – Product/SKU Records Module Page 51 3.1.5.2Statechart Diagram A statechart diagram for the entire SKU system is shown in Figure 3.1.5.2.a. As the administrator or user logs and selects the SKU, the system will then display the main window. The main window will then offer its several functionalities necessary to perform various stock-keeping tasks. Idle Adding [incorrect] Password Entered Verifying Updating [password=correct] [JButton=add] [JButton=update] Checking Date Refreshing [JButton=refresh] [date<>expiration] [date=expiration] [Print=yes] [JButton=label] Updating Stock Waiting Printing Labeling Printing Complete [JButton=report] [Print=yes] Printing Reporting [JButton=history] Printing Complete Displaying Stock [JButton=search] Viewing [JButton=sort] Displaying Business Note Note Cleared Searching Note Entered Updating Business Note Sorting Figure 3.1.5.2a Overall Stock-Keeping Unit System Statechart Diagram Merchandising System – Product/SKU Records Module Page 52 3.1.6 Restrictions, Limitations and Constraints JAVA is the only or preferred language in developing the SKU system. The system prefers a stand-alone based computer for production purposes. The system will utilize MySQL in managing database. 3.1.7 Validation Criteria Validation upon system wide may ensure that the users will be guided up on an appropriate action for such system functions, thus it may lessen human error; still, user intervention would bring back the normal running state of the system, if only the user will submit either comply its actions and decisions upon the system’s requirements. 3.1.7.1 Classes of tests Unit testing will be conducted on the following software features and/or functionalities: 1. Logging onto the system 2. Creating New User 3. Modifying Users 4. Adding or Retrieving Product Information. 5. Creating and Modifying Product Classification or Categories 6. Updating Price 7. Viewing Product Details 8. Printing Product Details 9. Creating Reports 10. Viewing Report 11. Posting Business Notes 12. Read Business Notes 3.1.7.2 Expected Software Response The system should prompt an appropriate error messages whenever violation on validation criteria and when a value outside the accepted limit is entered was committed with an equivalent confirmation dialog with options whether to Merchandising System – Product/SKU Records Module Page 53 terminate current activity, continue with corrections or cancel to go back on a previous state before the violation is omitted. The system will prompt a notification or warning modals whenever successful event has occurred and will continue its activity depending on what the user desired to do in the future. The system will prompt a message dialog box or a business note written by the previous shift or user of the system in every login 3.1.7.3 Performance Bounds The system application can establish a session at a time per computer system that’s why the system is stand-alone based software that shall be installed and operates once at a computer. But is it possible to run this system simultaneously with different users? The answer is yes, only if the system is running on different computer having different IP-addresses and Mac-addresses; regarding that these computers has configured to connect on the database having enough privilege to do such system functionalities. Merchandising System – Product/SKU Records Module Page 54