Chapter 1 The Problem and Its Background

Introduction Technology has become the essential elements of our social economic live and plays a major role in all organizations. This is the reason why all organization especially business society that uses Information Technology, to provide a system that can help the organization to improve their technology and provide better services to their clients and customers.

Information technology has become an increasingly important component of an organization. Technology facilitates the ongoing operations of an institution and contributes its competitive strategy. One component of information technology is the logistic management system. Logistic management system is broadly defined, as part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

Logistic management system is considered as the art of managing the supply chain and science of managing and controlling the flow of goods, energy, information and other resources like products, services and people from the source of production to the marketplace. It is difficult or nearly impossible to accomplish any trading, export/import processes, repositioning of raw materials/products and manufacturing _______________________________________________________________________ _ Logistic Management System for Mega Movers Network Unlimited Inc. 1-1

without a professional logistical support. It involves the integration of information, transportation, inventory, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process and finished inventories where required at the lowest cost possible.

A logistic management system involves people at different level of an organization, computers, programs, procedures, communications, networks, and personnel to operate the system.

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1.2 Background of the Study

Nowadays most of the big companies are using computerized system to process data in a more efficient way. Some of the most widely used or most popular used systems are Inventory, Payroll, Accounting Billing, Information, Logistic management, and many more.

The Logistics management system to be developed is one of the most essential tasks in a forwarding company because this is a database that handles the entire inventory and other transactions the company makes.

The Mega Movers Unlimited Network Inc., is a company that needs a logistics management system. Although the company uses Microsoft Excel in organizing their transactions, and monthly they make a manual generation of report. The proponents decided to develop a logistic management system to help the company in organizing their product from where they get it and its destination.

The target company Mega Movers Unlimited Network Inc., is a company duly licensed and registered with the Securities and Exchange Commission and one hundred percent Filipino owned. The company provides land, sea, and air logistics and distribution services and does purchase order management for supplementary freight services and freight forwarding. The company processes the documents in any port nationwide and directly files the entries on behalf of their customers no matter what ports _______________________________________________________________________ _ Logistic Management System for Mega Movers Network Unlimited Inc. 1-3

they use. The company also provides day to day accounts of movement and updates the clients through e-mail or fax regarding the actual movements of its cargoes. Mega Movers Unlimited Network, Inc. (MMUNI) offers its customers a personalized service founded with the full trust of its personnel who work as a team in order to achieve the reputation of being a professional cargo handlers.

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1.3 Conceptual Framework Input Process Output

Knowledge Base - Customer Information - Supplier Information and Products Software - Visual Basic - Microsoft Access People ware - Customers - Clients - Company Staff

Planning Stage Requirements Definition Stage Design Stage Development Stage Integration Stage Installation and Acceptance Logistics Management System for Mega Movers Network Unlimited Inc.

Evaluation on the Acceptability of Logistic Management System for MMNUI in terms of: Functionality Reliability Efficiency Maintainability Usability Portability Figure1.1 Conceptual Framework _______________________________________________________________________ _ Logistic Management System for Mega Movers Network Unlimited Inc. 1-5

1.2 Statement of the Problems 1.2.1 General Problem The general problem of Mega Movers Network Unlimited Inc., is that they dont have a computerized system that handles the information of their services. 1.2.2 Specific Problem The need of a system where they can manage all the transaction in the computer. The need of a back-up files whenever the hard copy is lost. Slow processing of data and other essential informations. The need of reports whenever the managing director asks for it.

1.3 Objectives of the Study 1.3.1 General Objective To develop a computerized Logistic management system that handles the information of their goods and services. 1.3.2 Specific Objectives To design a system where they can manage all their transaction in the computer. To create a system that has a fast processing of transactions, data, and other essential informations. To evaluate a system on the acceptability in terms of reliability and other aspects regarding to the functionality of the proposed system.

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1.4 Significance of the Study This study is significant to the following: for the Employees This study serves to be a great importance for the employees of Mega Movers Network Unlimited Inc., because it would provide the necessary transaction that is involved in organizing the logistic management. for the Company This study serves to be essentially great to MMNUI because they have an ease of transaction, inventory and logistic management whenever they have customers that would like to transact their business with them. for the Proponents This study helped the proponents to understand more the ideas and principles of developing a system. This also helped them in developing bigger kind of systems in the future.

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1.5 Scope and Limitation Scope of the Study The proposed system covers the following: Security feature such as usernames and password for the staff to use the system. Handling and managing of transaction, inventory and logistics as well as generation of reports such as summary of the weekly, monthly, and annual information. Scheduling of the delivery of the products. Dispatching of the products Monitoring of the products from the company to the end users.

Limitation of the Study The proposed system is implemented within the following limits: The system will only be implemented in MMNUI Quezon City only. It will not cover the hauling services of Mega Movers Network Unlimited Inc., only the forwarding services. The coverage of the system will only be in Luzon area only. Evaluation of the Quality control. Procurement of the products for non-members.

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