A system study on the merchandise management system of Duty Free Philippines Corporation

• Main Authors: Kok, Joycelyn L., Meneses, Thomas Joseph, Ortiz, Jose Miguel
• Format: text
• Language: English
• Published: Animo Repository 2013
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12180
• Institution: De La Salle University

In an age of ever increasing competitiveness where efficiency and productivity of a company’s operations may be the deciding factor of its profitability, it is important now more than ever to leverage the wealth of tools provided by information technology. A study on the Merchandise Management System of Duty Free Philippines Corp. (DFP), which is a world-class retail company that provides tourists and returning Filipinos with imported merchandise at reduces costs than the competition thanks of being free of duties and customs taxes. Specifically, the sales and inventory data from DFP’s directly owned and fast-moving merchandise was analyzed across their Integrated & Forward warehouses and Store a.k.a Fiestamall. Over the period of the study, the main problem was identified to be the major overstocking of the top four products within the scope of the study. It was determined that inventory levels exceed the Reorder Point plus 10% by as much as 164.13%. The true causes of the overstock that were revealed to be that the logical/software side of the Duty Free’s ERP system, currently the MMS, must undergo fundamental changes in order to significantly improve usability and functionality, and also that a clear, transparent SOP needs to not only be designed but also communicated effectively to the Stockkeepers and Stockclerks, with an active monitoring and user feedback system in place. Be developing a customized inventory model for Duty Free Phils. Corp. based on their past inventory data, and by implementing this in a highly-cost effective and modern ERP solution based on open source technology, DFP Corp. may effectively minimize overstock levels to only 8.2% at most over the Reorder Point for any given product line, satisfying the system objectives and earning the company an estimated$987,588.96 by the end of three-year period. In order to realize the potential cost savings outlined in the study, it is recommended for Corp. to implement the proposed ERP system, and to follow the implementation schedule which highlights the need for user testing and feedback. To ease the migration of the users’ current workflow to the proposed system, various other programs are recommended to be deployed in conjunction with the implementation of ERP solution, particularly in light of the users’ previous failure when attempting to upgrade to their current system; all users must undergo seminars and workshops to get accustomed to the new system, and; a system to convenient and open culture of communication between users and IT personnel must be set up to address problems promptly.