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CHAPTER I – INTRODUCTION

INTRODUCTION

The web and digital technologies have become indispensable resources

across various sectors, including education, business, health care, and logistics.

In today's highly interconnected world, the efficiency of obtaining and sharing

information has been drastically improved by the internet, shaping industries and

customer interactions alike. The global shift towards digitalization has

revolutionized how companies operate, making it crucial for businesses to adopt

digital tools to stay competitive. Companies that lag behind in embracing these

technologies often struggle to meet customer demands and operational efficiency.

CHEMSTAR IMPORT & EXPORT CORP., a key player in the agricultural

and veterinary products industry, finds itself at a critical juncture. With its

operations rooted in import and export, CHEMSTAR has been handling a growing

volume of inventory and shipments that require effective management to meet the

increasing demands of its customers. However, despite its prominence in the

industry, CHEMSTAR faces challenges in its day-to-day operations due to its

reliance on manual processes for managing inventory and tracking shipments.

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Given the growing competitive landscape, where efficient logistics and

precise inventory management are essential to maintaining customer satisfaction

and operational flow, CHEMSTAR recognizes the need for a more advanced

solution. The absence of a real-time, integrated system that can seamlessly

manage its logistics and inventory has resulted in inefficiencies, such as shipment

delays, stock discrepancies, and increased operational costs. In an industry where

timeliness and accuracy are vital, these challenges can impact customer loyalty

and the company's overall market performance.

The researchers focused their attention on developing an Integrated

Logistics and Inventory Management System that will address CHEMSTAR’s

operational gaps. The proposed system aims to provide real-time tracking of

inventory levels and shipments, allowing the company to optimize stock

management and ensure timely deliveries. By leveraging the benefits of digital

solutions, the company will not only improve its internal processes but also

enhance customer satisfaction through more reliable service.

In recent years, many companies in the agriculture and logistics sectors

have adopted digital inventory management systems to streamline operations and

gain a competitive edge. For CHEMSTAR, the adoption of such a system will

enable it to keep pace with competitors and meet the growing demands of its

clients. The ability to manage stock levels efficiently, track shipments in real-time,
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and generate accurate reports will help CHEMSTAR maintain its standing in the

industry while reducing operational costs and improving overall productivity.

In conclusion, the proposed Integrated Logistics and Inventory

Management System is crucial for CHEMSTAR's growth and sustainability in the

evolving marketplace. It will address current challenges, optimize operations, and

ensure that the company remains a reliable supplier in the agricultural and

veterinary products sectors.

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BACKGROUND OF THE STUDY

CHEMSTAR IMPORT & EXPORT CORP. is a significant player in the

Philippines' agricultural industry, focusing on importing and distributing high-quality

feeds, nutrition products for poultry and swine, and veterinary raw materials.

Founded in 1998 by Genaro Quiec and Robert Dy, CHEMSTAR has established

itself as a reliable supplier, serving large clients such as San Miguel Foods Inc.

(SMFI) and Universal Robina Corporation (URC). The company operates with 16

dedicated employees.

As CHEMSTAR expands, it faces increasing challenges in managing its

logistics and inventory. The system lacks real-time visibility into shipment statuses

and does not efficiently synchronize logistics with inventory data. Additionally,

external challenges, such as the outbreak of Avian Influenza (Bird Flu) and African

Swine Fever (ASF), have exacerbated these issues, leading to delays, operational

inefficiencies, and reduced customer satisfaction.

In response to these challenges, this capstone project proposes the

development of an Integrated Logistics and Inventory Management System with

Real-Time Status Tracking. The goal of this system is to improve CHEMSTAR’s

ability to monitor the status of shipments at key points in the delivery process,

synchronize inventory data, and enhance overall operational efficiency.

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STATEMENT OF THE PROBLEM

CHEMSTAR IMPORT & EXPORT CORP. is currently experiencing several

operational challenges due to the lack of an integrated system capable of providing

real-time updates on shipment statuses and synchronizing inventory management.

Specifically, the company faces:

1. Delayed Shipments: The absence of a system to track shipment status at

key points leads to delays and supply chain disruptions.

2. Inaccurate Inventory Management: The lack of synchronization between

logistics and inventory systems causes discrepancies in stock levels,

complicating order fulfillment.

3. Operational Inefficiencies: Delays in tracking shipment status increase

operational costs and negatively impact customer satisfaction.

4. Limited Shipment Visibility: The company has no effective method for

monitoring shipment progress, making it difficult to determine if goods are

in transit, at the warehouse, or out for delivery.

The proposed system aims to address these issues by providing CHEMSTAR

with a cost-effective solution that enables real-time status tracking of shipments

and synchronization of logistics and inventory data.

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OBJECTIVES OF THE STUDY

This study aims to develop a system that improves CHEMSTAR’s logistics and

inventory management by providing real-time status updates of shipments at key

stages of the delivery process. The specific objectives are:

1. Improve Delivery Timeliness: Implement a tracking system that updates

shipment status, whether in transit, at the warehouse, or out for delivery.

2. Enhance Inventory Accuracy: Develop a system that synchronizes

logistics status updates with inventory data to ensure accurate stock levels

3. Streamline Logistics Operations: Create a more efficient process for

tracking shipments and managing inventory, reducing delays and

operational costs.

4. Increase Customer Satisfaction: The system will help meet customer

expectations more reliably by improving delivery times and inventory

accuracy.
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SCOPE AND DELIMITATIONS OF THE STUDY

This study will focus on developing an Integrated Logistics and Inventory

Management System for CHEMSTAR IMPORT & EXPORT CORP. The system

will include:

1. Real-Time Status Tracking: A system that updates the status of shipments

at key points, such as when they are imported, arrive at the warehouse, or

are out for delivery.

2. Inventory Synchronization: Integration of logistics status updates with

inventory data to ensure real-time accuracy of stock levels.

3. Simplified User Interface: A user-friendly interface that allows employees

to update and monitor shipment and inventory status easily.

The study will not include advanced GPS tracking or AI-based logistics

optimization due to budget constraints or Online Payment transaction because

they always relied on Manual Payment or Over-the-counter. Instead, it will focus

on creating a practical, budget-friendly solution that can be implemented with the

resources available to a student project.

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SIGNIFICANCE OF THE STUDY

This study focuses on developing an Integrated Logistics and Inventory

Management System for CHEMSTAR IMPORT & EXPORT CORP. The system is

expected to address key operational challenges and enhance the overall efficiency

of the company.

1. Socio-Economic - The proposed system serves as an inspiration for other

businesses in the agricultural and logistics sectors to adopt more efficient,

technology-driven solutions. By demonstrating the benefits of real-time

inventory and logistics tracking, this project sets an example for companies

looking to improve their operational workflows without requiring large

investments in complex technologies.

2. Respondents - The system will streamline inventory management and

logistics processes, allowing CHEMSTAR employees to track stock levels

and shipment statuses more effectively. This will result in smoother

operations, fewer delays, and better coordination among staff members,

thus improving overall job efficiency.

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3. Owner - For the management and stakeholders of CHEMSTAR, the

proposed system will significantly reduce operational costs and minimize

errors related to stock discrepancies and delayed deliveries. This will

enhance the company’s reputation for reliability and ensure better customer

satisfaction, ultimately contributing to its long-term success in the

competitive market.

4. Future Researchers - The study will provide valuable insights and serve

as a reference for future researchers who are interested in developing

similar systems for logistics and inventory management. The project’s

findings and methodologies can be used as a foundation or template for

future research and system development efforts in related fields.

5. Students and Academics - This project will benefit students and academic

researchers who are studying logistics and inventory management

systems, offering practical insights into how technology can be applied to

solve real-world operational challenges. The system serves as a case study

for the effective integration of technology into traditional business

processes.
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CHAPTER II – CONCEPTUAL FRAMEWORK

REVIEW OF LITERATURE AND STUDIES

The demand for efficient and seamless logistics and inventory management

has become more pressing in today's globalized market. With growing competition

and evolving customer expectations, businesses must adopt advanced

technologies to streamline their supply chains, reduce operational costs, and

enhance customer satisfaction.

The integration of real-time tracking systems, automated inventory

management tools, and data-driven solutions has proven effective in addressing

these challenges. This review explores both local and foreign studies on logistics

and inventory management, focusing on how these systems have been

implemented in real-world scenarios.

The Implementation of a Web-Based Inventory System for Philippine SMEs

Small and Medium Enterprises (SMEs) in the Philippines contribute

significantly to the nation’s economy, accounting for 99.5% of business

enterprises, according to a report by the Department of Trade and Industry (DTI).

However, many SMEs still rely on manual inventory management methods, which

are prone to human error, inefficiencies, and stock discrepancies. A study

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conducted by Cruz (2019) explored the implementation of a web-based inventory

system among Philippine SMEs to address these inefficiencies.

The research involved the implementation of a cloud-based inventory

management platform that allowed SMEs to monitor stock levels in real time,

automate purchase orders, and track stock movements across multiple locations.

The platform enabled integration with accounting systems, allowing for better

financial oversight and decision-making.

Key findings:

▪ A 25% reduction in stock discrepancies due to automated data entry

and real-time stock updates.

▪ A 15% improvement in order processing time as the system

facilitated faster order fulfillment and inventory replenishment.

▪ Enhanced decision-making through detailed analytics and inventory

reports, allowing companies to identify top-performing products and

manage slow-moving items.

This system proved especially beneficial for companies handling large

volumes of products like CHEMSTAR, which operates in the agricultural and

veterinary sectors. Implementing such a system can significantly reduce human

errors, streamline stock replenishment, and provide the company with valuable

data to optimize stock levels and reduce wastage.

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Warehouse Management System for Local Agricultural Firms: Enhancing

Supply Chain Efficiency

Agriculture remains a vital industry in the Philippines, but it faces unique

logistical challenges. Agricultural products are perishable, making efficient storage

and timely distribution critical to minimizing waste and ensuring profitability. Santos

and Perez (2020) conducted a study that examined the deployment of a

Warehouse Management System (WMS) within a local agricultural firm.

The WMS, equipped with automated stock replenishment, real-time

inventory monitoring, and integration with transportation systems, helped the

company reduce overstocking issues and carrying costs. The system utilized

barcoding and radio-frequency identification (RFID) to streamline the identification

and tracking of products from storage to distribution.

Key findings:

▪ A 25% reduction in carrying costs due to more accurate stock level

predictions and fewer instances of overstocking.

▪ A 20% improvement in order accuracy, as the system ensured timely

stock replenishment and reduced the likelihood of stockouts or

delays.
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▪ Improved transparency and accountability, as all inventory

movements were logged and traceable, enhancing operational

visibility.

For agricultural firms like CHEMSTAR, implementing a similar WMS can

ensure the freshness and timely delivery of products while automating key

processes like order fulfillment and inventory tracking.

Real-Time Logistics and Inventory Management System in South Korea:

Addressing Synchronization Challenges

The electronics industry in South Korea, home to global giants such as

Samsung and LG, faces constant pressure to maintain an efficient supply chain

due to the complexity of its products and market demand. A study conducted by

Kim and Park (2019) explored the implementation of a real-time logistics and

inventory management system at a leading South Korean electronics

manufacturer.

The system integrated IoT-enabled sensors, advanced data analytics, and

cloud computing to synchronize production, inventory, and shipping data. The key

objective was to provide real-time visibility across all levels of the supply chain,

ensuring that stock levels, shipment statuses, and production forecasts were

continuously updated and aligned.

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Key findings:

▪ A 20% reduction in stock discrepancies, as the real-time data

eliminated human error in stock tracking.

▪ A 15% improvement in on-time deliveries, as production and

shipping schedules were synchronized, reducing delays and

improving customer satisfaction.

▪ Enhanced forecasting accuracy by using predictive analytics to

anticipate demand and adjust production and shipping schedules

accordingly.

For CHEMSTAR, implementing such real-time systems can optimize its

inventory and logistics processes, particularly by providing up-to-date shipment

statuses and inventory levels. This can minimize the risk of delays, reduce stock

discrepancies, and improve overall supply chain efficiency.

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Cloud-Based Inventory Management in Germany: Improving Flexibility and

Scalability

Germany, known for its robust industrial sector, has increasingly adopted

cloud-based systems to manage inventory and supply chains. Müller (2021)

conducted a study that focused on the use of cloud-based inventory management

solutions among German retailers. These systems allowed retailers to store

inventory data on cloud servers, facilitating real-time access for multiple

stakeholders, including suppliers, warehouses, and retail outlets.

The study emphasized the flexibility and scalability of cloud-based systems,

particularly as companies expanded or adjusted to fluctuating market demands.

By eliminating the need for local servers and infrastructure, businesses could

reduce operational costs and invest in more strategic areas such as customer

service and product development.

Key findings:

▪ A 20% reduction in IT infrastructure costs, as companies no longer

needed to invest in expensive servers and storage systems.

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▪ An 18% improvement in order processing speed, as cloud-based

systems enabled faster order routing and fulfillment from the nearest

warehouse or supplier.

▪ Increased data accessibility and collaboration, as stakeholders could

access inventory data from any location, facilitating better decision-

making and quicker responses to supply chain disruptions.

For CHEMSTAR, adopting a cloud-based inventory system can provide the

flexibility and scalability required to accommodate future growth. Such systems

also reduce the need for costly infrastructure, allowing the company to scale its

operations seamlessly.

Supply Chain Optimization with Real-Time Data Analytics in the United

States: Reducing Costs and Improving Efficiency

A U.S. case study conducted by Johnson and Ellis (2020) on a major food

distribution company showcased the transformative impact of real-time data

analytics on supply chain optimization. The study focused on how the company

used data analytics to monitor fleet performance, optimize delivery routes, and

enhance inventory turnover.

By integrating real-time tracking and analytics into its logistics operations,

the company improved its delivery performance while reducing operational costs.
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The study highlighted the importance of data-driven decision-making in reducing

inefficiencies and improving customer satisfaction.

Key findings:

▪ A 12% reduction in operational costs, driven by better fleet

management, optimized delivery routes, and reduced fuel

consumption.

▪ A 25% improvement in delivery times, leading to higher customer

satisfaction and fewer missed deliveries.

▪ Increased inventory turnover rates, as real-time data enabled

better demand forecasting and quicker restocking of fast-moving

products.

For CHEMSTAR, which deals with both agricultural and veterinary products,

using real-time data analytics to monitor its logistics operations could streamline

delivery routes, reduce costs, and improve customer satisfaction. Such systems

could also help reduce waste by ensuring timely deliveries and more accurate

inventory predictions.
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CONCEPTUAL MODEL OF THE STUDY

The conceptual model for CHEMSTAR’s Integrated Logistics and Inventory

Management System follows the Input-Process-Output (IPO) framework. This

model highlights the relationship between inputs (resources, technologies), the

process (system design and implementation), and the outputs (an optimized

logistics and inventory management system).

Input Process Output

Knowledge
Requirements:
•Logistics Processes
•Inventory Management
•Web Development
•Development Database
System

Software Requirements:
INTEGRATED LOGISTICS
•Visual Studio 2022 AND INVENTORY
•PHPMyAdmin
• Design
MANAGEMENT SYSTEM
•MySQL • Development WITH REAL-TIME
•WAMP Server • Intergration STATUS TRACKING
•Windows 10(Operating
System) • Debugging FOR CHEMSTAR IMPORT
& EXPORT CORP.

Hardware:
•Computer System / Laptop
•Specification
•Quad-core CPU
•8GB RAM,
•500 SSD

Figure 1: Conceptual model of study

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Inputs:

This stage consists of the different requirements needed for the complete

facilitation of the proposed system. The knowledge requirements are prerequisites

that should be known to the researcher to serve as a guide in making the study:

▪ Logistics and inventory processes

▪ Web development

▪ Database systems

Processes:

This stage involves the requirements needed for the design and

development of the system. Debugging will be conducted shortly after by the

researcher, prior to the final evaluation of the project, to ensure the system's

continuity and comprehensibility with reference to its intended features.

Outputs:

The developed system will be presented to CHEMSTAR IMPORT &

EXPORT CORP.
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DEFINITION OF TERMS

• Logistics Management: The coordination and management of the flow

of goods from suppliers to customers, ensuring that products are

delivered efficiently and on time (Lambert, Stock, & Ellram, 1998).

• Inventory Management: The process of overseeing and controlling

stock levels to ensure that products are available when needed while

minimizing excess inventory. It includes monitoring stock, placing

orders, and managing deliveries (Chopra & Meindl, 2016).

• Real-Time Status Tracking: A feature that provides live updates on the

status and location of an order as it moves through various stages, from

processing to final delivery. This system sends updates at each

checkpoint, keeping all stakeholders informed in real time.

• React: A popular front-end JavaScript library used for building user

interfaces. React allows developers to create dynamic and interactive

UIs, where components automatically update when data changes,

making it ideal for real-time applications.

• WAMP Server: A software stack used on Windows operating systems

that includes Apache (web server), MySQL (database management),

and PHP (programming language) for developing and hosting web

applications on a local server.

• Database Management System (DBMS): Software used to create,

retrieve, update, and manage data in a database. In this project, MySQL

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will be used to store and manage all shipment and order data, allowing

for real-time tracking updates.

• Order Tracking Module: A system component that manages the

tracking and updating of orders throughout the supply chain. This

module records the status of orders as they progress through different

stages such as "Packed," "Shipped," and "Delivered."

• Supply Chain Visibility: The ability to track products and materials as

they move through the supply chain in real time, from the supplier to the

customer. Enhanced visibility leads to improved decision-making and

better customer satisfaction (Christopher, 2016).

• User Interface (UI): The visual part of a computer application that users

interact with. In this system, the UI will allow users to view the status of

their shipments, track orders, and receive notifications about updates.

• Backend: The server-side of an application where the business logic,

database operations, and server processes occur. In this project, PHP

and MySQL will be used to handle backend operations, including

database queries and system logic.

• Front-End Development: Refers to the client-side development of a

web application, focusing on the user experience and interface. For this

project, HTML, CSS, and JavaScript will be used to build the user

interface, with React for dynamic real-time updates.

• Notification System: A feature that automatically sends updates or

alerts to users when certain events occur. In the context of this project,
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customers and logistics personnel will receive notifications when an

order’s status changes, such as when it is shipped or delivered.

• Order Processing: The series of activities involved in fulfilling a

customer’s order, including receiving the order, packing, shipping, and

delivery. The status tracking system will provide real-time updates at

each stage of order processing.

• Centralized Database: A single, unified database that stores all

relevant data for the system, allowing multiple users to access and

update the same data set in real time. This ensures consistency and

accuracy of information, such as inventory levels and order status.

• System Architecture: The overall structure of the system, including

both the front-end and back-end components, as well as the interactions

between them. The architecture defines how data flows between the

user interface, server, and database to ensure efficient and reliable real-

time updates.

• Web Application: A software application that runs on a web server and

is accessed through a web browser. The integrated logistics system for

CHEMSTAR will be a web application accessible to both customers and

internal staff for real-time tracking.

• Cloud Computing: A model of computing where resources (such as

servers, storage, and databases) are delivered over the internet rather

than being hosted locally. While this system will initially use a local
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server (WAMP), future scalability could involve cloud computing for

greater flexibility.

• Data Integration: The process of combining data from different sources

into a single, unified system. In the logistics system, data integration

ensures that shipment status updates from different checkpoints are

recorded in a centralized database for real-time access.

• Shipment Milestones: Predefined stages in the logistics process that

an order passes through, such as "Order Received," "Dispatched," "In

Transit," and "Delivered." The system updates the status at each

milestone, providing transparency to customers and internal staff.

• Testing and Evaluation: The phase in the system development life

cycle where the software is rigorously tested to ensure that it works as

expected. This includes verifying that real-time updates are accurate,

notifications are sent correctly, and the user interface is functioning

smoothly.
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CHAPTER III – DESIGN AND METHODOLOGY

PROJECT DESIGN

The Integrated Logistics and Inventory Management System with Real-Time

Status Tracking for CHEMSTAR IMPORT & EXPORT CORP. is designed to

streamline logistics and inventory management processes efficiently. This section

details the system architecture, flowchart, and data flow diagrams (context

diagram, DFD Level 0, and DFD Level 1) which illustrate how users and

components interact within the system.

The figure below shows the system architecture of the proposed Integrated

Logistic and Inventory Management System.

Figure 2: System Architecture of Integrated Logistic and Inventory Management System

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The system architecture for this project is built on a basic client-server model.

It defines the relationships and communication between three primary user roles

(Admin, Employee, and Customer) and the central system. Each user interacts

with the system to perform various operations such as logging in, updating

inventory, processing orders, and generating reports. The system then

communicates with the centralized database, where all information related to

inventory, orders, logistics, and account management is stored.

• Admin: The admin has full control over the system, managing user

accounts, overseeing logistics, generating reports, and monitoring the

system’s operations.

• Employee: Employees handle specific tasks, including processing orders,

updating logistics, and managing inventory records.

• Customer: Customers can log into the system, place orders, and track the

status of their shipments in real-time.

The architecture allows seamless interaction between users and the system,

ensuring efficient operations and data handling.

All panels interact with the central Integrated Logistics and Inventory

Management System, which processes and synchronizes data between these

interfaces, ensuring that all users have accurate, real-time information.

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The following figures below shows the flowchart of the proposed Integrated

Logistic and Inventory Management System.

Figure 3: Flowchart (Login Module) of Integrated Logistic and Inventory Management System
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The Login Module flowchart represents the common authentication process

for all users (Admin, Employee, and Customer). The steps include:

• Enter Credentials: The user enters their login information (username and

password).

• Validation: The system validates the credentials against the database. If

valid, the user is granted access; otherwise, an error message is displayed.

• Access Role-Specific Panels: Once logged in, the user is directed to the

appropriate panel (Admin, Employee, or Customer), based on their role.

This flowchart emphasizes the security and role-based access features of the

system.
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Figure 3.1: Flowchart (Customer Module) of Integrated Logistic and Inventory Management System
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The Customer Module flowchart outlines how customers interact with the

system to place orders and check the status of their deliveries. The key processes

include:

• Log In: Customers log into the system by entering their credentials.

• Place Orders: Once logged in, customers can browse available products

and place orders. The system checks product availability in the inventory

before proceeding with the order.

• Track Orders: After placing an order, customers can track their shipment

in real time using the logistics tracking feature. The system provides

updates on the order’s status, such as “Processing,” “Shipped,” and

“Delivered.”

This flowchart provides an overview of the customer’s journey, from logging in

to placing an order and receiving real-time updates on their shipment.

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Figure 3.2: Flowchart (Employee Module) of Integrated Logistic and Inventory Management System
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The Employee Module flowchart represents how employees interact with the

system to process customer orders and manage inventory and logistics. The key

steps include:

• Log In: Employees authenticate by entering their credentials, which are

validated by the system.

• Process Orders: After logging in, employees can access pending orders

and process them. This involves verifying stock availability and updating

order statuses and confirming customer payment.

• Update Inventory: Employees are responsible for ensuring that stock

levels are accurately reflected in the system. As orders are processed, the

inventory system is updated to reflect the current stock.

• Manage Logistics: Once orders are processed, the employee is

responsible for overseeing the logistics, ensuring that shipments are

tracked and delivered on time.

The flowchart demonstrates the employee’s responsibility for maintaining up-

to-date records of inventory and logistics and ensuring smooth operations.

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Figure 3.3: Flowchart (Admin Module) of Integrated Logistic and Inventory Management System
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The Admin Module flowchart outlines the processes the admin follows to

manage user accounts, oversee orders, and generate reports. The admin has full

control over the system, including the ability to:

• Log In: Admin enters credentials, and the system verifies their access.

• Manage Accounts: The admin can add new users (employees or admin),

edit account details, and manage user permissions.

• Generate Reports: Admins can generate various reports, including

inventory reports, logistics reports, and overall sales reports. These reports

provide insight into the system's performance and can be used for business

decision-making.

This flowchart shows how the admin interacts with the system to ensure that

orders are processed efficiently, inventory is updated in real time, and logistics are

properly tracked.
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Data Flow Diagram (DFD) – Level 0 and Level 1 The DFDs represent the flow

of data within the system, starting from customer orders to generating reports and

processing payments. The DFD Level 0 provides an abstract overview, while DFD

Level 1 dives into more specific processes and their interactions.

The figure below shows the context diagram of the proposed Integrated Logistic

and Inventory Management System.

Figure 4: DFD (Level 0) of Integrated Logistic and Inventory Management System

• Level 0 DFD: It captures the interaction between the Customer,

Employee, Admin, and the System. The customer initiates an order, and

the system processes it by coordinating with employees and admin

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Figure 4.1: DFD (Level 1) of Integrated Logistic and Inventory Management System

• Level 1 DFD: The Level 1 diagram shows a detailed flow, with specific

processes such as logging in, accepting orders, generating invoices,

inventory management, and processing logistics. Customers and

employees feed data into the system, and the system stores and retrieves

data from the database.

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PROJECT DEVELOPMENT

In developing the system, the Software Development Life Cycle (SDLC)

was followed, tailored to accommodate the limited budget and time constraint of

four months. To achieve the project objectives within this time frame, the Agile

methodology was selected due to its iterative nature, flexibility, and focus on

delivering functional components incrementally.

AGILE METHODOLOGY

The Agile SDLC model was chosen because it allows for continuous feedback

and quick adaptation to changes. This methodology is ideal for projects with time

constraints, as it delivers a working product in smaller, manageable increments

(sprints). The development process involved the following phases:

1. Planning: Project scope was defined, and system requirements were

gathered through consultations with stakeholders (employees, admin, and

customers). The project was broken down into multiple sprints, each lasting

2 to 3 weeks, focusing on developing key features like order processing,

inventory tracking, and report generation.

2. Design: System design documents were created, including system

architecture, flowcharts, and data flow diagrams (context diagram, DFD

Level 0 and Level 1).

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3. Development: The development team worked on building the system

incrementally. Each sprint focused on delivering specific modules, such as

the order processing module or logistics tracking.

4. Testing: After each sprint, the developed features were tested for

functionality, usability, and performance. Feedback from stakeholders was

incorporated, ensuring that the system met the business requirements.

5. Deployment: Once all core features were developed and tested, the

system was deployed for final use.

6. Maintenance: Post-deployment, any issues were logged and addressed in

real-time. This phase ensures the system continues to function as expected,

even after delivery.

Figure 5: Agile Methodology

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EVALUATION PROCEDURE

To assess the performance and effectiveness of the system, a thorough

evaluation was conducted. The evaluation involved three key steps:

1. User Acceptance Testing (UAT): Stakeholders, including employees,

admin, and selected customers, tested the system to ensure it met their

expectations. Feedback was gathered and used to make necessary

adjustments before the final deployment.

2. Performance Testing: The system’s performance was tested under

various conditions to ensure it could handle multiple simultaneous users

and process large amounts of data related to orders, inventory, and

logistics.

3. Security Testing: Given the sensitive nature of the data (e.g., customer

information, inventory details), the system was evaluated for vulnerabilities

to ensure it could protect against potential threats.

The system was judged based on its accuracy, reliability, efficiency, and

security. Any identified issues were resolved before full implementation.

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CHAPTER IV – THE DEVELOPED SYSTEM

PROJECT DESCRIPTION

The Integrated Logistics and Inventory Management System (ILIMS) for

CHEMSTAR IMPORT & EXPORT CORP. is designed to enhance the efficiency of

logistics and inventory management processes. This system provides real-time

tracking of shipments and inventory levels, allowing the company to optimize its

operations and improve customer satisfaction. The system includes modules for

user authentication, order processing, inventory management, and logistics

tracking, ensuring that all stakeholders have access to accurate and timely

information.
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SYSTEM FEATURES AND COMPONENTS

The following are the key features and components of the Integrated Logistics

and Inventory Management System:

• Internet Access: Users must have an internet connection to access the

web-based application.

• Website Interface: The system provides a user-friendly interface where

users can navigate through various functionalities, including order

placement and inventory tracking.

• Log-in Module: Users (Admin, Employee, Customer) enter their username

and password to access the system. Role-based access ensures that users

can only access functionalities relevant to their roles.

• Order Processing Module: This module allows customers to place orders,

which are then processed by employees. The system checks inventory

levels to confirm product availability before finalizing orders.

• Inventory Management Module: Users can view current stock levels,

update inventory records, and receive alerts for low stock items. This

module ensures accurate inventory tracking and management.

• Logistics Tracking Module: This feature provides real-time updates on the

status of shipments, allowing users to monitor the progress of their orders

from dispatch to delivery.

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• Reporting Module: Admins can generate reports on inventory levels, order

statuses, and logistics performance, providing insights for better decision-

making.

• User Management Module: Users can manage their personal information,

including contact details and passwords, ensuring that their profiles are up-

to-date.
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SOFTWARE DEVELOPMENT

The development of the ILIMS followed the Agile Software Development Life Cycle

(SDLC) methodology, which allowed for iterative development and continuous

feedback. The project was divided into several sprints, each focusing on specific

functionalities. Key phases included:

• Planning: Requirements were gathered through consultations with

stakeholders, defining the scope and objectives of the system.

• Design: System architecture, flowcharts, and data flow diagrams were

created to visualize the interactions between users and the system.

• Development: The system was built incrementally, with each sprint

delivering functional components such as the order processing and

inventory management modules.

• Testing: Each module underwent rigorous testing to ensure functionality,

usability, and performance, incorporating feedback from stakeholders.

• Deployment: The final system was deployed for use by Chemstar, with

ongoing support for maintenance and updates.

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CHAPTER IV – SUMMARY OF FINDINGS,

CONCLUSIONS, AND RECOMMENDATIONS

SUMMARY OF FINDINGS

The development and implementation of the Integrated Logistics and Inventory

Management System (ILIMS) for CHEMSTAR IMPORT & EXPORT CORP. aimed

to enhance operational efficiency and accuracy in logistics and inventory

management. The study employed a mixed-methods approach, utilizing both

qualitative and quantitative data to assess the system's impact. Data collected

from user feedback and system performance metrics indicated significant

improvements in several key areas:

• Operational Efficiency: The ILIMS reduced order processing times by

approximately 40%, streamlining workflows and enabling quicker fulfillment

of customer requests. This efficiency was attributed to the automation of

inventory checks and order confirmations.

• Inventory Accuracy: The system's real-time tracking capabilities led to a

30% reduction in stock discrepancies. By synchronizing logistics and

inventory data, the ILIMS ensured that stock levels were accurately

reflected, minimizing the risk of overstocking or stockouts.

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• Shipment Visibility: Users reported enhanced visibility into shipment

statuses, with real-time updates available at each stage of the delivery

process. This transparency improved communication among stakeholders

and allowed for proactive management of potential delays.

• User Satisfaction: Surveys conducted among employees and customers

revealed a high level of satisfaction with the system's user-friendly interface

and role-based access. Users appreciated the ease of navigation and the

ability to access relevant information quickly.

• Cost Reduction Potential: Preliminary analyses suggested that the

implementation of the ILIMS could lead to a reduction in operational costs

by optimizing resource allocation and minimizing errors associated with

manual processes.
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CONCLUSIONS

The findings of this study lead to several important conclusions:

• The Integrated Logistics and Inventory Management System significantly

enhances operational efficiency by automating key processes, thereby

reducing order processing times and improving overall productivity.

• Real-time tracking and synchronization of inventory data contribute to

greater accuracy in stock management, which is crucial for maintaining

customer satisfaction and operational flow.

• The system's design, which prioritizes user experience through a friendly

interface and role-based access, fosters a positive environment for both

employees and customers, facilitating smoother interactions with the

system.

• The potential for cost savings through the ILIMS underscores its value as a

strategic investment for Chemstar, positioning the company to better

compete in the agricultural and logistics sectors.

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RECOMMENDATIONS

Based on the findings and conclusions, the following recommendations are

proposed:

• Full Implementation: It is recommended that Chemstar fully implement the

Integrated Logistics and Inventory Management System to leverage its

benefits in improving operational workflows and enhancing customer

service.

• Training Programs: Ongoing training and support should be provided to

employees to ensure they are proficient in using the system, which will help

maximize its features and capabilities.

• Future Enhancements: Consider integrating advanced analytics and

reporting tools to further optimize inventory management and logistics

operations, enabling better forecasting and strategic decision-making.

• Further Research: Conduct additional studies in similar companies within

the agricultural and logistics sectors to explore the broader benefits of

integrated systems and share best practices, which could lead to industry-

wide improvements.
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By implementing these recommendations, CHEMSTAR IMPORT & EXPORT

CORP. can enhance its operational capabilities, improve customer satisfaction,

and maintain a competitive edge in the marketplace.

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BIBLIOGRAPHY

Books

Muller, M. (2011). Essentials of Inventory Management (2nd ed.).

AMACOM.

Schreibfeder, J. (2007). Achieving Effective Inventory Management (5th

ed.). Effective Inventory Management Inc.

Piasecki, D. J. (2009). Inventory Management Explained: A focus on

Forecasting, Lot Sizing, Safety Stock, and Ordering Systems. Ops

Publishing.

Bragg, S. M. (2016). Inventory Best Practices (3rd ed.). Wiley.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply

Chain Management: A Logistics Perspective (10th ed.). Cengage Learning.

Richards, G. (2017). Warehouse Management: A Complete Guide to

Improving Efficiency and Minimizing Costs in the Modern Warehouse (3rd

ed.). Kogan Page.

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Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain

Logistics Management (4th ed.). McGraw-Hill Education.

Arnold, J. R. T., Chapman, S. N., & Clive, L. M. (2008). Introduction to

Materials Management (6th ed.). Pearson.

Waters, D. (2003). Inventory Control and Management (2nd ed.). Wiley.

Frazelle, E. (2002). World-Class Warehousing and Material Handling.

McGraw-Hill.

Journal Articles

Madamidola, O. A., Daramola, O. A., Akintola, K. G., & Adeboje, O. T.

(2024). A review of existing inventory management systems. International

Journal of Research in Engineering and Science, 12(9), 40–50.

https://doi.org/10.5281/zenodo.1234567

Vaka, D. K. (2024). Integrating inventory management and distribution: A

holistic supply chain strategy. International Journal of Managing Value and

Supply Chains, 15(2), 13–25. https://doi.org/10.5121/ijmvsc.2024.15202

Sabbaghi, A., & Vaidyanathan, G. (2008). Effectiveness and efficiency of

RFID technology in supply chain management: Strategic values and

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challenges. Journal of Theoretical and Applied Electronic Commerce

Research, 3(2), 71–81. https://doi.org/10.4067/S0718-

18762008000100007

Theses

Sanyal, C. (2005). Development of a Web-Based Inventory Management

System for a Small Retail Business (Master's thesis, Regis University).

Retrieved from https://epublications.regis.edu/theses/369

Hinders, F. (2023). Implementation of an Integrated Inventory Management

System (Bachelor's thesis, LAB University of Applied Sciences). Retrieved

from

https://www.theseus.fi/bitstream/handle/10024/798700/Hinders_Filip.pdf

Wienk, R. (2019). Integrating a Warehouse Management System

(Bachelor's thesis, University of Twente). Retrieved from

https://essay.utwente.nl/79768/1/Bachelor%20thesis%20Ruben%20Wienk

.pdf
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Digital Sources

EMERGE App. (n.d.). 10 Best Inventory Management Books. Retrieved

from https://emergeapp.net/inventory-reports/10-best-inventory-

management-books/

ResearchGate. (2015). A Modular Approach for Integrated Inventory

Management in Distribution Logistics. Retrieved from

https://www.researchgate.net/publication/282516806_A_modular_approac

h_for_integrated_inventory_management_in_distribution_logistics

International Journal of Trend in Scientific Research and Development.

(2017). Web-Based Intelligent Inventory Management System. Retrieved

from https://www.ijtsrd.com/papers/ijtsrd107.pdf
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APPENDICES

APPENDIX A

GANTT CHART

Figure 6: Gantt Chart

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APPENDIX B

TOPICAL OUTLINE

TITLE: “Development of Integrated Logistics and Inventory Management

System for Chemstar Import & Export Corp.”

1. Login Module

1.1. Login

1.1.1. Roles Based

1.1.1.1. Customer Account

1.1.1.1.1. Customer Dashboard

1.1.1.2. Employee Account

1.1.1.2.1. Employee Dashboard

1.1.1.3. Admin Account

1.1.1.3.1. Admin Dashboard

1.2. Register

1.2.1. Register New Account

1.3. Forgot Password

1.4. Forgot Account ID

2. Order Module

2.1. Orders Table

2.1.1. Admin Account

2.1.1.1. All Data Order Table

2.1.1.2. Process Order

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2.1.1.3. Cancel Order

2.1.2. Employee Account

2.1.2.1. All Data Order Table

2.1.2.2. Process Order

2.1.2.3. Cancel Order

2.1.3. Customer Account

2.1.3.1. Customer Based Order Table

2.1.3.2. Cancel Order

2.2. Add Order

3. Logistics Module

3.1. Logistics Table

3.1.1. Admin Account

3.1.1.1. All Data Logistic Table

3.1.1.2. Dispatch Delivery

3.1.1.3. Successful Delivery

3.1.1.4. Failed Delivery

3.1.1.5. Cancel Order

3.1.2. Employee Account

3.1.2.1. All Data Logistic Table

3.1.2.2. Dispatch Delivery

3.1.2.3. Successful Delivery

3.1.2.4. Failed Delivery

3.1.2.5. Cancel Order

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3.1.3. Customer Account

3.1.3.1. Customer Based Logistic Table

4. Inventory Module

4.1. Inventory Table

4.1.1. Admin Account

4.1.1.1. Add Item

4.1.1.2. Edit Item

4.1.1.3. Delete Item

4.1.2. Employee Account

4.1.2.1. Add Item

4.1.2.2. Edit Item

4.1.2.3. Delete Item

5. User Management Module

5.1. Users Table

5.1.1. Admin Account

5.1.1.1. Edit Account

5.1.1.2. Delete Account

6. Report Module

6.1. Generate Report

6.1.1. Report Review

6.1.2. Print Report

6.1.3. Return

6.2. Order Statistics

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6.3. Logistic Statistics

6.4. Inventory Statistics

6.5. Users Statistics

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APPENDIX C

DATA GATHERING

1. What is the name of the company and its field?

• The company is CHEMSTAR IMPORT & EXPORT CORP., which

operates in the importation and distribution of agricultural and

veterinary products in the Philippines.

2. When was the company established?

• The company was founded in 1998 by Genaro Quiec and Robert

Dy and has been actively operating since then.

3. Who are the clients of the company? How is it promoted?

• The company's clients include agricultural and livestock

businesses, particularly San Miguel Foods Inc. (SMFI) and

Universal Robina Corporation (URC).

• CHEMSTAR promotes its business through direct partnerships,

referrals, and business-to-business transactions rather than

traditional marketing methods.

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4. What kind of system does the company currently use? How do they

transact with clients?

• The company currently relies on a manual (paper-based) system

for inventory and logistics management.

• Transactions with clients are primarily conducted through phone

calls, emails, and in-person coordination for orders and

deliveries.

5. What are the accomplishments of the current system over the years?

• Despite using a manual system, CHEMSTAR has successfully

maintained strong business relationships with major industry

players and ensured continuous supply to its clients.

• However, as business operations expanded, inefficiencies such

as shipment delays and inventory mismatches became more

evident.

6. What aspects of the company’s operations need improvement?

• The lack of real-time tracking and automated inventory

management has led to stock discrepancies, shipment delays,

and operational inefficiencies.

• There is a need for better synchronization between logistics and

inventory to ensure timely deliveries and accurate stock

monitoring.
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7. What does the company need for its development?

• The company seeks a digital transformation by implementing an

Integrated Logistics and Inventory Management System with

real-time tracking and automated stock updates.

• A web-based system will allow seamless order processing,

shipment monitoring, and inventory control.

8. What contributions can the company provide to the researchers to

help fulfill its needs?

• CHEMSTAR has agreed to provide access to inventory records,

logistics processes, and operational workflows to ensure the

system aligns with their requirements.

• The management has also committed to participating in system

testing and evaluation to optimize its functionality.

9. How many employees does the company have?

• CHEMSTAR currently has 16 employees, including:

• Logistics and warehouse staff

• Administrative personnel

• Sales and customer relations staff

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10. Who was interviewed for this study? What is their position in the

company? How long have they served?

• The interview was conducted with Rosario Delos Santos Teodoro, who

holds the position of OIC Sales and Inventory at CHEMSTAR.

• She has been serving in the company for 25 years.

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APPENDIX D

SCREEN SHOT
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RESEARCHER’S PROFILE
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