De La Salle University Science and Technology Complex

Information System

INFOSYS

Section XE1

Final Report

Submitted to:

Prof. Justin Contreras

Submitted by:

Eunice Austria

Jamaica Grace Lafuente

Rose Angel Lizardo

Ronalyn Marcellana

Submitted on:

December 11, 2014

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Table of Contents

Chapter 1: Company Profile ......................................................................................................................... 2

1.1 Company Background................................................................................................................... 2

1.2 Products......................................................................................................................................... 3

1.3 Organizational Chart ..................................................................................................................... 4

Chapter 2: Present System ............................................................................................................................ 4

2.1 Scope ............................................................................................................................................. 4

2.2 Processes ....................................................................................................................................... 5

2.2.1 Purchasing Process ................................................................................................................ 5

2.2.1.1 Ordering Process ................................................................................................................... 6

2.3 Software ........................................................................................................................................ 9

2.4 Hardware ..................................................................................................................................... 12

2.5 Processes ..................................................................................................................................... 12

2.5.1 BPMN/Swimlane (Purchasing) ........................................................................................... 12

1.1.1 BPMN/Swimlane (Ordering) .............................................................................................. 14

1.1.2 Use case diagram ................................................................................................................ 15

Chapter 3: Proposed System ....................................................................................................................... 16

3.1 Diagrams ..................................................................................................................................... 16

3.2 Changes ....................................................................................................................................... 17

3.3 Explanation ................................................................................................................................. 18

3.4 Flow of tasks ............................................................................................................................... 19

3.5 Interface ...................................................................................................................................... 19

Chapter 4: Conclusion ................................................................................................................................. 22

4.1 Summary of Changes .................................................................................................................. 22

4.2 Foreseen Benefits ........................................................................................................................ 22

4.3 Other Possible Solutions invest to new app with cart system .................................................. 22

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Chapter 1: Company Profile

1.1 Company Background

Korean Cravings is a Philippine and South Korea-based online retail shop that is

geared towards Hallyu or Korean wave enthusiasts. It is based in Seoul, South Korea,

and Davao City, Philippines but they ship nationwide and worldwide. They have two (2)

admins in Davao City and one (1) admin in Seoul. Most of their clients are from Metro

Manila, Luzon, USA, and in certain parts of Europe and Southeast Asia.

The business makes K-Pop, Korean Drama, Korean Fashion, Korean Beauty and

everything else imported and made in Korea available to everyone not just in the

Philippines, but worldwide. Korean Cravings have been in business since April 2010

and is under Everything Pop Trading with the DTI Registration Number: 03117192

1.1.1 History

Korean Cravings started on April 2010 under the name Beau Stuff. During

this time, they opened an account on the now defunct social network and online

marketplace, Multiply.com. The business wanted to sell beauty products from

Germany and through creating an account on the said website, they were able to

have customers interested in their products. However, they noticed that Hallyu

(Korean Artists being popular in other countries) is what is in in the market and

because of this, they changed their target market based on what is on the trend.

On June 2010, Korean Cravings decided to change the target market of

their business from selling German beauty products to selling K-Pop and

Korean drama products. Eventually, they sold Korean beauty products, fashion

items, and Japanese releases of Korean idols and Japanese idols as well. On

September 2011, they changed their name to Korean Cravings and created their

own website, www.koreancravings.com.

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Through starting the business in Multiply.com which was a very popular

website during that time, paved the way to their growth. Through time, the

business was able to gain trust from their customers and the number of their

followers and customers increased. The business was also able to successfully

set-up their official website on Tumblr and on other social media platforms even

before Multiply closed down which enabled them to market their products to

many people. Up to this day, they continue to be of service to the flourishing

Hallyu wave market.

1.2 Products

K-POP/K-Drama/Hallyu official items: All products are Korean version and

made in Korea.

J-Pop and J-Rock Items: Japanese version CDs are imported from Tokyo,

Japan. Some products are in Korean version and are made and imported in

South Korea, but the packaging and songs are the same.

Korean Fashion Items: Most items are manufactured in Korea. Some are made

in China (like most of the European, Japanese, and American brands too), but

the Korean government is very strict with quality control. Those products

wouldnt be sold in Korea if they werent good enough and werent be able to

pass the Korean governments strict speculation, so expect superior product

quality.

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1.3 Organizational Chart

Korean Cravings is owned by Dranessa Ledesma and Chizuru Tanaka. Dranessa

Ledesma serves as the main admin and Chizuru Tanaka as the co-admin who are based

in the Philippines. This shop also has a co-admin and named Cheolhyun Kang who is

currently based in Seoul, South Korea. He is the one who takes the orders from the

Philippines and order it personally in Korea. Martin Ledesma is the one who is in charge

of shipping the orders once they arrive in their warehouse in Davao.

Chapter 2: Present System

2.1 Scope

This paper is only concerned with the purchasing process for the pre-order of the

products offered by Korean Cravings specifically the ordering process. The

recommendations and alternatives will only be for the improvement of the ordering

process. This paper will only be considering the order of customers in the Philippines

only.

Dranessa Ledesma (Owner & Main Admin)

Chizuru Tanaka (Owner & Co-Admin, Phils)

Cheolhyun Kang (Co-Admin, Korea)

Martin Ledesma (Shipper, Phils)

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2.2 Processes

The business usually creates and sets a period wherein the customers can order

the products they are selling. Customers who want to purchase their products should be

able to pass the order form for their selected products before or during the last day of

ordering which was set by the business. As based on the policy of the business, the

customers who sent the order forms should pay the 70% down payment for the products

they ordered or else their orders will not be processed for the said batch. However, it will

eventually be added to the next batch. If ever the customer decided to back out, he/she

should inform the business in order for them not to put the orders on the next batch.

2.2.1 Purchasing Process

The order to cash process focuses on the selling of the companys products

until cash revenue is realized. It can be further subdivided into two processes:

the customer purchasing process and the store replenishment process.

Customer Purchasing Process

The customers can browse the pictures of the items they sell and decide

which of the items they want to purchase in their official website. The price for

each items and other details about the products are also indicated in their

website. It is strongly suggested that for those who visited their website and will

order their products for the first time will read the Terms and Conditions, FAQs

section, Payment Options and Shipping Options section of their website in order

to give them guidelines and reminders on how their business works. Customers

can also choose the mode of Payment and Shipping Courier they want to avail

when delivering their orders. Once the customer is 101% sure that he/she will

buy their products, he/she should submit an Order Form in order to process the

orders. An invoice of the order will then be sent to the customers email

address. The invoice includes the estimated shipping fee for the customers

order and other details that the customer inputted in the order form.

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2.2.1.1 Ordering Process

Tasks:

1. Browse website.

2. Go to the "Order Form" Section

3. Input full name

4. Input active email address

5. Input contact number

6. Input social media account link

7. Input complete shipping address - in this case

8. Input orders - in this case

9. Input alternative Orders - in this case

10. Choose the mode of payment - in this case BPI

11. Choose shipping courier of Choice - in this case JRS

Express

12. Input date of expected payment submission.

13. Write comments and suggestions (if there is any)

14. Choose the mode of finding the shop - in this case

Facebook

15. Tick "Process my order" section

16. Click Submit.

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2.3 Software

Korean Cravings main website is hosted on Tumblr. They want it to be hosted on

a social media site so that they can cater to more customers and with Tumblr, they can

customize the look of the website, so its now easier for customers to find the products

they offer. Before, the business used free2go application when it comes to sending the

copy of the submitted order form. However if they continue to use this application, they

need to pay for it, which will be a cost to the business, one that they dont want to

happen. This made the business to use other free applications. Right now, Korean

Cravings uses the JOT application when it comes to sending the copy of the submitted

order form of the customer. Through this application, they are able to automatically send

the copy of the order form to the customers and receive a copy for themselves. On the

other hand, the admins do the sending of the invoice manually. At the same time, the

computation seen in the invoice is also manually computed. Basically, they already have

a format template on how their invoice should look like.

The picture below is the sample copy of the order form provided by the business

through the JOT application they use and their sample invoice.

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The picture above shows the actual order form submitted by the customer. This

was sent to the active email of the customer after she submitted her order form. Using

the JOT application, Korean Cravings is able to send a copy to the customer and at the

same time receive their own copy without accumulating any cost.

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As shown in the sample invoice of Korean Cravings, the orders of the customer

and the details regarding the orders, like the quantity and the total price are presented. At

the same time, the payment details with respect to the chosen mode of payment by the

customer is also shown. Other reminders and contact details are also included in the

invoice.

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2.4 Hardware

Since the business is in the e-commerce, the use of internet and computers are

very important. The admins of the business uses the internet and their own personal

computers when posting an update to their products or the orders of the customers. At the

same time, almost all of the transactions involved in the business are mostly online that is

why it is important that they ensure to have a good internet connection in order to cater to

the daily orders and questions of their customers.

2.5 Processes

2.5.1 BPMN/Swimlane (Purchasing)

The diagram above shows the actual purchasing process of the pre-ordered

products by the customer. In order to know the products that Korean Cravings

offer, the customer needs to browse the website first. After the customer has

chosen which products he will order, he needs to fill up the order form, the link

for which can be found on the top portion of the website. Filled order forms

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should be submitted and after that, a copy of the order form submitted will be

sent to the active email address of the customer and another copy will also be

sent to them. The admins will then check the order/s of the customer and will

send a private message on email and Facebook. The customer should confirm

the orders and an invoice similar to the one presented above will be sent to the

customer. Once the invoice is received by the customer, he needs to deposit the

70% down payment for the order and a scanned picture of the receipt should be

sent to the email address of the admin. The admin will then confirm the

payment and a message confirming the payment will be received by the

customer. The remaining balance of 30% should be paid and the proof of

payment should also be presented. The admin will also update the customer

from time to time regarding the order and once the orders are already in their

warehouse in Davao, and the customer already paid the full amount, the orders

will be delivered to the place of delivery indicated by the customer in the order

form. A message will be sent to the customer regarding the delivery details of

the products and the orders will be received by the customer. If ever the

customer paid in full after the invoice is received, the proof of payment should

also be sent to the email address of the admin and once the admin confirmed the

payment, the customer needs to wait until the products are already in the

warehouse of Korean Cravings so that it will be delivered to the customer

automatically. It is noted that Korean Cravings will update the customer

regarding the status of the orders from time to time.

Also, since the orders are by batch, Korean Cravings will only order the

orders of the customers to their suppliers on the last day or cut-off date of the

batch so that they will be able to receive the payment from the customers at the

same time.

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1.1.1 BPMN/Swimlane (Ordering)

Once the customer has decided which products he will order, he needs to

click the link provided in order to view the order form of the business. The

customer should then input the name, active email address, mobile number/s,

social media account link, personal blog/website link, complete shipping

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address, orders which includes the item name/number, collection name,

quantity, color and size, and the alternate orders if ever the product to be

ordered is not available. The customer should choose which among the mode of

payment is more applicable to him and the shipping courier of choice. The

expected day of payment submission should also be filled up by the customer

and if ever there are suggestions and recommendations. The part where the

customer found out about the shop should also be answered. Once everything

was filled up by the customer, he should click submit. The submitted form will

be received by both the admin and the customer.

1.1.2 Use case diagram

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Chapter 3: Proposed System

3.1 Diagrams

Figure 1 BPMN/Swimlane (Purchasing)

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Figure 2 BPMN/Swimlane (Ordering)

3.2 Changes

Korean Cravings has this policy that the customers can cancel their orders despite

submitting the order form and receiving the copy of the submitted order form via JOT

application used by them. Since they dont have a deadline for the submission of the

order form, as long as the customer is able to submit the order form at the last day for

the batch order and pay the 70% of the payment of orders on the said day, the orders will

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automatically be processed. However, there are customers who submit the order form

and ask many things regarding the details of the orders but will cancel the orders at the

end. This situation, though acceptable for the admins of the shop for they believe that

peoples mind changes all the time, is still not good in a way. It would be better if they

change their policy that will ensure that those who submit their order forms will not

cancel their orders in order to make sure that they will have buyers who are sure 100%.

The business can change their terms and conditions in order for the customers to know

the new policy of the company. An example of which is by saying that despite

cancelling the orders, they still need to pay the exact amount of the orders and not

paying the said amount will make them Bogus buyers. Once considered as bogus buyers,

the business will not accept any orders from them. Also this will make the admins to

serve more those customers who are willing to really buy the orders in the end instead of

allocating some of their time answering the questions and giving importance to the

buyers who will eventually cancel their orders in the end, they can use those times to.

Also, instead of having a lenient policy when it comes to the payment of the products, in

this case the 70% down payment, it is also better if they will schedule a time in which

the full payment for the orders should be received. Having this policy will ensure that

they will have 100% sales for the products because they will be able to receive all the

payment from the orders submitted and will also decrease the process involved in the

payment of the orders. It is also suggested that the order form will be revised in such a

way that the customers can easily choose the products since they just have to choose

among the choices provided. Through this, the customers will be able to choose easily

among the available products. Also, the revised order form will provide the total amount

of the orders and the shipping fee based on each shipping courier.

3.3 Explanation

These alternatives will ensure the business to have 100% buyers in their products.

Also, the processes involved in completing a transaction, starting from the submitting

of the order form until the receiving of the orders will be decreased. It will also enable

the business to improve the service they provide to the customers since all those who

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submitted the order forms are sure buyers, therefore they can make sure that the time

they allot to each of the customers are not wasted. Revising the current order form of

the business in such a way that the customers can easily fill up the information needed

for the orders will also help them improve their service and at the same time, there will

be fewer mistakes committed by the customers. The new order form wherein the

customers just need to choose and tick among the available products is far easier than

customers having to fill up the information themselves. Also, the new order form

includes the total amount of the orders of the customers including the shipping fee.

3.4 Flow of tasks

The customers should first be able to read the revised terms and conditions of the

company since adapting the proposed system involve the changing of the original

policy. In the proposed system, those who submitted the order forms should make sure

that theyll pay their orders on time. Despite cancelling the orders, the customer should

still pay the equivalent amount of the orders. Inability to do so will make that customer a

bogus buyer, in which they cant use the service provided by the business anymore. On

the other hand, the revised order form will only involve the filling out of name, active

email address, mobile number/s, social media account link, personal website/link and the

complete shipping address. As for the type of products, the customers just have to

choose among the items (JPop items, KPop items, Korean Fashion Items). If the

customers will choose one of the first two items, the artists and albums are already

presented and he just has to click on the available products provided by the business.

The total amount of the orders and the mode of payment, shipping courier and shipping

fees are also presented. The total amount is already indicated on the order form.

3.5 Interface

The revised order form will allow the customers to easily order the products

offered by Korean Cravings since they just have to tick the products available. At the

same time, it allows the customers to see the current amount of the orders, the shipping

fee based on the shipping courier chosen.

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Chapter 4: Conclusion

4.1 Summary of Changes

All in all, the proposed system involves the changing of the payment policy

established by Korean Cravings. From allowing cancellation of orders and paying only

70% at the start to paying 100% once they submit the order forms will ensure that the

business will generate 100% sales for their products. Also, through the revised order

form, Korean Cravings will be able to compute the total amount of orders of the

customers.

4.2 Foreseen Benefits

The proposed system will enable Korean Cravings to ensure more sure buyers and

at the same time focus more on sure buyers since those who submitted the order forms

should pay the amount indicated in their order forms and the invoice sent despite

cancelling the orders. Also, the revised order form will enable them to automatically

compute the total amount of products ordered by the customers. It will also lessen the

mistakes the customers commit when ordering the products since the revised order

form is easier to use. Lastly, Korean Cravings will be able to allocate more time to

improve the service they provide to their consumers while customers will be able to

lessen the time it takes for them to submit the order form since they just have to choose

between the products.

4.3 Other Possible Solutions invest to new app with cart system

Invest to New App with Cart System

Most retailers such as Amazon.com uses cart system when it comes to

receiving orders from their customers. Customers have to have an account on the

said website in order to order the products the business offers. The customer is

prompt to enter the customer details such as address and even credit card details.

The online cart system facilitates the customer to view the products, inquire item

details, and its availability. The major functionality of this system is to allow the

customers to add products to carts and at the same time remove them to the cart as

long as the customer did not arrange the payment for the products on the cart.

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However, investing to new app with cart system will incur additional costs to the

company.

Invest to App to Send Invoice Automatically

In this alternative, Korean Cravings will look for applications that will

enable them to send the invoice automatically so that they dont have to do it

manually. However, using this alternative will also incur additional cost to the

company.