Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location, marketed through independent sales representatives who are sometimes also referred to as consultants, distributors or other titles. Just about any product or service can be purchased through direct selling somewhere In the world.
Many people think of cosmetics, wellness products and home d©cord as products that are often sold through direct sales, but add to that countless other product categories including kitchen products, jewelry, clothing, organic gardening applies, spa products, scrapbook supplies, rubber stamps and more. During the past couple of years, Callahan City has catered the location and opportunities for business ventures. Some of the said businesses that have taken their bloom are In direct selling market.
Callahan City opened Its gateways to direct selling companies like Nathan, MESS, Departure Brands, Avon, Personal Collection and many others, which became the norms and extra sources of income for some of the household mothers across the province. Having Callahan City as the location of choice for the ranches of these brand names, multi-brand outlets from other municipalities sprout. Direct selling outlets, are managed by individual members registered in a brand, which gained their own set of dealers. At first, a member will need to register Is a brand. Or example, he/she needs to be a registered dealer for Nathan to place an order directly to the Nathan branch. A Nathan dealer will have an option of purchasing the product by cash, with 22% discount, or placing an order by credit which will give him/her 2 months to pay benefit. In purchasing products by cash, there are no limits on purchase amount and no additional requirements. However, if a dealer wants to place an order by credit, he/she needs to have a checking account from any bank available within the country.
The Nathan branch will get at least 10 blank checks Initially which postdated 2 months after the date of order. By doing these, Nathan branch will have a way to collect the amount needed for the placed order when the due date arrives. Initially, a registered Nathan dealer will have a maximum credit limit of UP, 000 which means that he can only order 22,000 worth of products by credit with corresponding 22% discount on all products. By time, this reedit Limit will Increase If Nathan recognized them as good payer (without past due records).
Bilaterally, as his/her credit Increase, he/she can recruit new dealers under his/her name, on which can order directly from branch (which will follow the same procedure and requirements of the branch) or order from him. If a dealer/member reach a goal of either PEP,OHO within a single month or PEP,OHO within 2 months, he/ she will be promoted as a Fashion Pro(step higher than a dealer). With this, his initial 22% discount will be upgraded to 40%.
By having this kind of benefit, a dealer can circuit more dealers under his/her name, on which will place order to him (not from he can give his/her own dealer the 22% discount a new dealer is entitled to, and still keep 18% additional discount which will serve as his/her own revenue. By doing this, and he can now be categorized as a distributor. A distributor creates her own outlet which will then be the place for her own dealers to go to, inquire, place a product order and pay their dues.
Similar procedures are applied on almost every other direct selling brand like Departure, Avon, MESS. Direct selling outlets can manage or eater multiple brands and can manage multiple individual dealers under one distributor. The outlets are the main link of the branch and the individual dealers who are not capable of reaching branches due to the distance between them and the hustles of commuting Just to get products.
Since these outlets are intended to grow, task of monitoring the order and credit limits of its own dealers also grow. At current, the distributors are using manual monitoring of their dealers credit limit, orders and payments with an old fashioned ledger system on which they manually write down the list of credits and payments of dealer. Although brand branches uses a software that is provided by the brand, the direct selling outlets are left with manual monitoring of the credits and sales of their own dealers.
At current status, there is no individual automated system that is created for the uses of these outlets since individual software of the brands are use solely for the branch operation. The outlet managers are left with the redundant work for monitoring individual sales and credits and the more dealers the outlet supports, the more paperwork the manager handles, the more likely human error will append in the computation and monitoring of the said sales and credits.
This study aims to lessen the time being spent in manually monitoring the sales, credits and product inventory documents by providing an accurate and automated system that will not only help handle these files and records but will also help the outlet managers see projections future sales, get the clear view of the outlets performance per month, see the dealer’s information and performance and the dealers pending dues for them to take actions and important decisions immediately. B. THEORETICAL FRAMEWORK
This study will consider the following theories in the design and implementation of the automated credit, sales and inventory system for direct selling distributors. This theory states that a careful planning process is necessary for direct sales people if they are to be successful. An analogy to a hurdle race seems to be appropriate to the direct sales process. If the salesperson cannot vault over each hurdle in its proper progression, he/she is unlikely to make a sale. (Gordon Stockholm 2009). This theory will support the study since the nature of the study is based on the current schemes and strategies of the direct selling business.
By understanding the theory, the outcome of the study will be guided accordingly in the main principles of the direct selling business. Business Management Theory This theory focuses on the principles and the practices of a business to attain its desired organizational goals conducting effective management. It is a range of approaches including the principles of accounting, public relations, operations, labor relations, time management to improve the performance of a business in some measurable or provable manner.
This theory will support the study in consideration of business guidelines and reminisces in which the automated monitoring will follow. In this theory, all the principles especially the accounting, operations and time management will be deeply involved in the creation and designing of the automated system for the inventory of credits and sales of direct selling outlets. The Concept of Scientific Management The concept of Scientific Management is to perform the manual Job faster than the old process of inventorying and with the efficiency of the company service in sales and marketing.
This theory is applicable in the study by means of replacing the manual practices hat a multi-brand direct selling outlet is using for monitoring credits, sales and inventory for its individual and group dealers. These practices are also time consuming and there are certain errors that can’t be avoided, mostly of having human errors. The proposed automated credit, sales and inventory system for direct selling distributors will helped to recover the process and attest that the concept of scientific management is applied in the study. C.
CONCEPTUAL FRAMEWORK In generating full understanding of the whole process of direct selling business in Oriental Indoor, PIP (Input/Process/Output) model is used. Figurer . 0 describes the whole conceptual framework in which becomes the central theme, the focus, the main thrust of the study. It serves as the guide in conducting investigation. The input describes the problems encountered on the existing manual practices that a multi- brand selling outlet is using for monitoring of the sales, credits and inventory for its individual and group dealers.
The input will be acquired from the data to be gathered from interviews conducted with the distributors of Direct Selling Brands. Questioners for direct selling distributors, individual dealers of these distributors ND direct selling brand/branch managers.. Advantages of current Automated System of Direct Selling Branch available and operational here in Oriental Indoor will also be taken into account. Such inputs will be process to assess the need for the development of an Automated Sales, Credit and Inventory System for Direct Selling Distributors.
These inputs will also be processed to create a unified process that can be applied by the Distributors in handling and monitoring multiple direct selling products that’s under their outlets. Designing the system is to provide accuracy for ales, credits and product inventory to avoid errors in existing manual process of the said outlets. These inputs are generally considered in the formation of the automated system on which will help direst selling distributors in monitoring individual and group sales, credits as well as product inventory. D.
OBJECTIVE OF THE STUDY General objective of the study To design an automated system for the monitoring of sales and credits of each individual of group dealers, monitoring of product inventory that will be used by any multi-brand direct selling distributor in Oriental Indoor. Specific objective of the study To find out the benefits existing automated processes of direct selling brands/branch in monitoring their group and individual credits and sales. To identify the problems encountered by the multi-brand direct selling outlet on manual monitoring of their group and individual credits and sales.
To provide a unified practice in monitoring credit and sales of dealers registered under multiple Direct Selling Brands. To develop a reliable and efficient credit, sales and inventory monitoring system that will be used by any multi-brand direct selling outlets in Oriental Indoor To determine the acceptability of the proposed automated system This study will benefit the following: Outlet Managers/Distributors Automated credit, sales and inventory system for direct selling distributors can make transaction on dealers more reliable.
The proposed system will also provide accurate sales inventory by providing individual or group sales report monthly. This system also serves accurate credit inventory by the use of credit statement by the distributors. With this report the direct selling distributors can gain control over the credit limit of group or individual dealers. Individual Dealers The proposed system can provide the dealers with their individual credit report so us for them to monitor their own credits.
Implementing the system that monitor their own credit and sales that will help them make their own strategies. Proponents It will enhance their skills and knowledge throughout the development of the study. Future Researcher This study will be significant to other researchers since this study can serve as a reference to the conduct of similar study. F. DEFINITION OF TERMS Direct Selling Brand – Company that uses direct selling method to distribute their products.
Direct Selling Distributor – Dealers of direct selling brand that acquired their own set of dealers, on which is the main link between the direct selling brand/branch and individual dealers Outlet – the on which dealers under a certain direct selling distributor place their order and pay corresponding amount dues Credit – the amount of products ordered by individual dealers on which will be paid in full after 30 days. Previous product ordered Inventory – process of monitoring products that are coming in and going out Interview Guide Direction: Please answer the following questions as honestly as you can. . How do you transact with the dealers and customers? 2. Did you find any errors on your transaction procedures? Cite an example. 3. Comment on your transaction procedures regarding its reliability, speed and accuracy. 4. Describe the method on how you monitor the credits of your individual dealers? 5. Describe the process of your payment transactions for dealers due. 6. Describe the processes on how a dealer places his/her order? 7. Did you find any problems in accurately monitoring dealer’s credit limits using the manual process? . What are the reports that you need in monitoring monthly/quarterly and yearly ales 9. What are your current processes in monitoring the product inventory? 10. Are you using any computerized system in computing the credits and sales of individual dealers, If so please state the applications that you are currently using? 1 1 . Would you consider upgrading your current process of monitoring sales and credits so as to provide you a much more accurate and speedy transactions?
Name: Designation: Gender: Date: General Directions: Put a check on the corresponding rating that you can think is most appropriate. Objective No. 1: To describe the existing sales and monitoring practices at your direct ailing outlet Legend: 4 – Strongly Agree (Very Serious Problem) 3 – Agree (Moderately Serious Problem) 2 – Fairly Agree (Slightly Serious Problem) 1 – Disagree (Not a Problem) Disadvantages (present procedure) 4 3 2 The manual process of monitoring sales and credits of dealers is laborious and difficult 2.
The manual process of monitoring product inventory is laborious and time consuming 3. There are errors committed when checking the sales and credits There is a tendency to lose records while compiling order documents 5. Entry errors and computation errors are likely to be committed. Objective No. 2: To determine the advantages of the propose Automated Credit, Sales and Inventory System 4 – Strongly Agree 3 – Agree 2 – Fairly Agree 1 – Disagree Advantages (proposed system) 4 An automated sales monitoring system is essential in reducing errors committed in recording.
An automated credit and sales monitoring system will facilitate transaction faster. An automated inventory monitoring system is easier to manage. 4. An automated inventory, credit and sales monitoring system provides additional records security in terms of providing redundant soft and hard copy of documents
An automated inventory, credit and sales monitoring system is acceptable and more reliable than the existing manual practices Questionnaires for Direct Selling Dealers The manual practice of monitoring individual sales and credits of dealers is laborious and difficult The manual practice of ordering product from outlet is laborious and time The manual practice of checking product availability from outlet is time consuming An automated sales monitoring system is essential in reducing time consumed in checking individual sales and credit details.