Chapter 2

REVIEW OF RELATED SYSTEMS

This chapter presents the review of related literature and studies that have some

relevance to the research proposal about point of sale system.

Foreign Literature and Studies:

As defined by Carolina Barcode Inc. (2013), a Point-of-Sale system is a computer

software and hardware networked together to track sales and inventory as they occur.

Point-of-Sale systems will solve a multitude of problems in your business. It is one of the

focal points of any retail or hospitality business in the cash register. The ability to process

transactions and tender cash are essential to the efficient operation of the enterprise. If

you have a lot of cash transactions, replacing the cash registers with a Point-Of-Sale

(POS) system save you money.

In an early age when most of the company are still using the manual system in the

sales and inventory, most of the company encountered so many problems and this is

because of the process of the existing system is too slow and too long. According to Kaye

Morris (2010), manual inventory management system can help sales and production

managers control costs by identifying lost sales due to inventory shortages; inventory

overrides on products that are not selling; losses due to employees theft or damage.

Implementing an inventory management system can take a large amount of time

depending on the size and diversity of inventory.

According to the thesis of Carlo Magno There was a ground swell to move from

paper signature and documents because the task of record management was huge. We had
file cabinets full of backup materials. By converting from manual process, we would be

able to eliminate a lot of paper. We could go further with the automation of manual

process and remove manual paperwork if people trusted the technology.

Point-of-sale systems have replaced traditional cash registers, largely for

functionality reasons. POS systems, as they are sometimes called, are relatively easy

touse and help provide valuable data for important decision makers. In order to keep

upwith the record-keeping needs of small and mid-sized businesses, a good point-of-

salesystem is necessary. Web-based point-of-sale systems are preferred over software-

based possystems because they are easily upgradeable, and feature access from multiple

computers (Carter, 2012)

The best thing about having a computerized POS System in your retail business

is: as new stocks arrives and as it is sold, it keeps the stock levels current and updated,

hence making it is easier to identify which items are selling and which items are not. A

POS System is also good in checking for any obsolete or out of date stock that needs to

be disposed. If you are still counting your inventory manually on the shelves or in the

warehouse, you should think twice about your method, for there are many advantages in

using a POS System. One advantage of a POS System is its ability to help your business

achieve detailed real-time stock level information. In addition, a POS System can also

give you information such as weather forecasts, public holidays and major sporting

events, which can be of great help in determining the stock level of seasonal products.

You can now efficiently and effectively handle your stock management accurately

(Ganderton, 2010).
 One of the biggest, and probably one of the most important, advantages of an

automated sales and inventory system is that it helps businesses focus on their biggest

goal, to improve the customers experience at the store (Mueller, 2011). With this system,

companies can have a better understanding of customer demand through the analysis of

their sales and inventory.

Local Literature and Studies:

The Sales and Inventory System of the vital to any institution, agency, or

department. The proper safekeeping, processing and disposal of records play important

roles in the efficient, effective and smooth operation that eventually would lead to the

success attainment of the goal and objectives of institution, agency and department

concerned. Based on her recommendation there should be a central record management

office that will hold data of the agency to serve as locator of the record and to control the

disposal of each record. This can be possible with computerized system. Computer with

the appropriate software package is capable of handling records efficiently and

effectively. In addition, locating records that are computerized is faster than finding them

in the filling cabinet (Magat, 2007).

According to Gemma Navarro (2012) Computer is general purpose device which

can be programmed to carry out a finite set arithmetic or local operation. Computer has a

big rule in our nation today because of our technology. Wherever you go computer still

exist, especially in business it makes the procedure easy and secure by programming the

manual system into a computerizing system. The rule of technology in our life today has

a big impact.
 Averion, Gaela, and Libo (2009) stated that inventory system help to minimize

the difficulty of the manager in processing inventory because physical counting products,

stocks and computing inventory summary will be the system job. It will monitor the

availability of products, items to prevent under stocking, over stocking and running out of

stocks. The system will also simplify the transaction between dealer and supplier

relationship because of the updated supplier information and price list of items will

correspond to collaboration with other supplier.

According to the thesis of Carlo Magno There was a ground swell to move from

paper signature and documents because the task of record management was huge. We had

file cabinets full of backup materials. By converting from manual process, we would be

able to eliminate a lot of paper. We could go further with the automation of manual

process and remove manual paperwork if people trusted the technology.

According to J.De Leon and M. Ferrer (2009) Under the Koread RedGinseng

Enterprise Sales and Inventory System, the researchers came up with acomputerized sales

and inventory system. The proponents used database toeasy access of files and for easier

and faster processing of the selling andinventory transaction. The program was

designated to generate reports such asmonthly reports, inventory reports, sales invoice

and list of items.