This document proposes an online retailing system for National Bookstore to improve customer satisfaction and convenience. It discusses launching a website with inventory information and setting up a 4-stage system for managing orders, payments, warehouse/delivery. Charts show potential 38% of online sales and projected monthly/annual sales increases. Benefits include greater customer satisfaction and awareness, wider customer reach, greater profits and reduced costs.

1. Far Eastern University
Institute of Accounts Business and
Finance
Total Quality Management
Proposed Research Study
For National Bookstore
Submitted by:
King Gil Reyes
Mel Steven Prepotente
Ran Itutud
Louie Lacorte
Submitted to:
Dr. Wilson Fajardo
September 10, 2014

2. Introduction
This paper is intended for the improvement of the retailing
system of the National Bookstore. The purpose of this paper is to
propose a new system of retailing for National Bookstore not just to
cover a wide range of customer but also to provide a greater customer
satisfaction and convenience.
The idea of creating this proposed system was made when our
professor in Enterprise Resource Planning asked us to buy a specific
book for the subject. We search on every bookstore that we know to
buythat bookand it tookus a lot of time and effort to find it. When we
get to the NBS branch is Trinoma, they said that they don’t have the
book, but then find out in their database that the NBS branch in SM
NorthEDSA and Rizal Ave have the stock of the book, so what we did is
we go to the SM North because it’s the nearest place in Trinoma and
purchase the book.
So, eliminate the wastage of effort and time of the potential
customerof NBS we propose thatNBS shouldlaunchanOnline Retailing
System. They will create a website that contains their inventory,
providing the prices, quantity, brand, title and description.
In another country like in US and there is a company named
Amazonthat isdoingthe same systemlike whatwe have proposed.The
Amazon launched its website, namely “Amazon.com” to cater their
online consumers led by their founder Jeff Bezo.

3. But unlike with our proposal, the Amazon doesn’t have the
descriptionandotherinformationaboutthe goodsthattheyare selling,
but in our proposal we will include all the information to satisfy the
needsof ourcustomer. Amazonisalsofocusingonsellingbooks online,
but we are differentbecause we will sell all the varietyof product in the
inventory on National Bookstore “just name it, and they’ll have it”.
Online retailing, which is also known as E-commerce was
popularized by the first online selling site which is “e-bay.com and
Amazon.com”.
E-bay is a popular website in the US that serves as a virtual
marketplace for online buyers. The buyers and seller will meet in the
sight in where they will make an agreement or deal about a specific
productto sell/buyit.The counterpartof “E-bay”here inthe Philippines
is “olx.com.ph formerly sulit.com.ph”, while Amazon.com is a website
that isfocusedonsellingdifferentkinds of books in different countries
like US, Europe and etc. through online retailing.

4. The business model used in online retailing is known as the
Brick and Mortar Business Model. It’s a business model that includes a
physical retail store andane-commerce internetsite foronlineretailing.
If the National Bookstore will implement this new system they
will reacha widerrange of customer,andtheywill provide convenience
for theycustomerbecause theircustomerwill notwaste any more time
and effort. They will also produce more customer awareness because
they can also use their website to market their product, brand and
company image.

5. System Manager
Account and Banking Personel
Verification
The System
Next Page

6. Go signal
Order List
Warehouse Manager
Delivery Team
Next Page

7. Customer Transaction
Completed
Proof of
Transaction

8. System Stages
Stage 1
Managing the
System
Stage 2
Receiving
Orders of
Customers
Stage 3
Receiving
Payment of
Customers
With Card
Without Card
Stage 4
Delivery of
Ordered
Materials

9. The proposed“Online RetailingSystem”forNational Bookstore
will runon 4 stagesincluding:
1st
Stage: Managing the System
The firststage includesManagingthe System.The system
manageror IT Expertand histeam will runandoperate the system.
2nd
Stage: ReceivingOrdersof Customers
Theywill receive the ordereditemof the customersthroughonline
withthe Personal informationof the customer.The Orderswill be
classifiedaccordingto:
 Title
 Brand
 Description
 Price
 Quantity
Thenthe will make a listof the ordereditemandtransferthe listto
the warehouse departmentafterthe gopaymentconfirmationfromthe
accountingdepartment.
3rd
Stage: ReceivingPaymentof Customers
The third stage will be the receivingof paymentfromthe
customers.Thisstage will have atwocomponents,firstisthe receiving
of paymentfromthe customerwhohasa creditcard and the second

10. one isreceivingof paymentfromcustomersthroughbanking
institutions.
Receiving Payment of Customers
(With Credit Card)
1. The BankingandAccount Personel will verifythe PIN code of the
customerif it exists.
2. They will alsoverifythe amountthatshouldbe charge tothe
customer.
3. Afterthe verificationof paymentthroughcreditcard,theywill senda
“GO” signal tothe SystemManager.
Receiving Payment of Customers
(Without Credit Card)
The NBS will have abank accountin the selectedbank(BPI,BDO,RCBC
and MetroBank) forthe paymentof online customers
1. The AccountPersonel willverifythe control numbergivenbythe
customerintheirtransactionwiththe bank.
2. The paymentwill alsobe verified.
3. Afterthe verificationof control number,theywill senda“GO” signal
to the SystemManager.

11. 4th
Stage: DeliveryofOrdered Materials
The deliveryteamwillsendthe ordersusing:
 Motorcycle
 Trucks
 L300 van
If the customerisfar fromMetro Manila theywill sendthe orders
throughthe 3rd
party:
 LBC
 2go

12. Retail
Operations
Online Retailng
System
Manager
Banking and
Account
Manager
Warehouse
Manager
Delivery
Team
Information
In Store
Retailing
SellingArea Cashering
Store
Warehouse
Receiving Stock Card
Storage
Stocks
Administrative and
Support Services
Proposed Online Organizational Chart

13. System Manager
•The systemmanager willbe the onewho willoperate the onlinereatailing systemofNBS.
•He will pass the information regarding withthecustomer's ordereditems interms of: Title,Brand,
Descrition, Price,and Quantitiy.
•The systemmanager willalso getthepersonalinformationofthecustomer (Name, Complete
Address,Contact Number andEmailAddress).
•Ifthe customeris outsidetheManila Area, he/shewill theasked topayan specificamount of
money for the delivery ofhis/herorders.
Banking/Account
Personel
•The Banking or Account Personels are in charge ofvalidating the paymentofthe customers
through online.
•They will check ifthe accountnumberofthecustomer's credit cardis valid.
•Ifthe customerpays through thebank, theyshould validate the controlnumber oftheordering
customer.
•After the validationofthepaymentthey willcallthewarehouse organizethespecific customer
orders.
Organizational Chart Job Specification and Descriptions

14. Warehouse
Manager
•After Recieving the order from the Banking Personel, the warehousemanwilllookfor the
availabilityof the ordereditem in the NBSwarehouse, anddatabase.
•If the ordered item is not available inthe warehouse, the personel willfindthe store that has
the itemthroughthe NBS inventorydatabase andget it personally.
•After the orders are organized,it will be pass to the deliveryteanto deliver the orders.
Delivery Team
•Through the customer's information, the team willdeliver the ordered item inthe address
given bythe customer throughmotorcycle or truck or L300 Van.
•If the location ofthe customer is far fromMetro Manila, the deliverywill be taking care of the
third partylike LBCor 2Go.
Information
Personel
•Afterthe deliveryhas beensent, the Information personel will sendanemail andSMS to the
customer sayingthat the orders has beensent.
•Theywill provide information regardingwith the lenght of the deliveryperiod.

15. The Table shows that
Books are in the top 10
list of which Filipino is
buying online
accumulating 4% out of
100% to place in the
top 9 spot.

16. National Bookstore Demand Analysis
Note: The total Populationof theNationalCapitalRegionis 11,855,975 andthenumbersof
peoplewho buy SchoolandOffice suppliesare 4,742390 theseare the officeworkersand
studentsandspecialinterest peoples.
The table above projects and shows the potential of on-line retailingforthe National
Bookstore. Its shows that if the National Bookstore launchesthe on-line retailingsystemthey
will achieve the 38% on the online userswho buy goods like books online.
Demand NCR Buyers Ave. Orders per
Customer
Total Value per
Customer
Percentage
Non- Online 60% 3- 8 items P300- P1000 62%
Online 40% 3-7 items P1000- P3000 38%
Total 100% 6- 15 items P1300-P4000 100%

17. -
5,000,000.00
10,000,000.00
15,000,000.00
20,000,000.00
25,000,000.00
30,000,000.00
35,000,000.00
40,000,000.00
45,000,000.00
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
LevelofSales
forNCRinPeso
Monthly Sales of 2015
National BookstoreSales Forecast

18. The projectedsalesinthe Graph forNational Bookstore’s SalesForecastrepresentthe
Monthlysalesforthe NBS if theywill launchthe On-line retailingsystemnextyear.The National
Bookstore will achieve itshighestsalesrate with atotal of P300,000.00 in the monthof
Septemberbecausethe school dayswill startonthismonthdue to the changesof curriculumof
majorityof schoolsinNCR.
National Bookstore hasatotal of 65 branchesin the National Capital Region.Here are
the average sales,average customersandyearlyprojectionsforeachbranchof National
Bookstore.
Yearly Projections of National Bookstore per Branch
Average Sales Average Customers Sales per customer
P4,653,846.00 11,635 P400

19. Advantages and BenefitsofNBS On-line Retailing:
 GreaterCustomer Satisfaction
o The effortand the time thatthe customerwill spendto
locate and buythe product will be lessenedanditwill
provide agreatersatisfactiontothem.
 Increase Customer Awareness
o The National Bookstore canuse theirestablished
website toadvertise theirproductsince online
marketingandadvertisingisthe new trendtoday.
 Cover a widerrange of customers
o The national bookstore canto reach customersthatare
far fromtheirphysical stores.
 Generate greaterprofit.
o Since the NBScan reacha widerrange of customer,
theycan now derive agreaterincome.
 Reduce Cost
o Theycan reduce the cost of havinga physical store by
diminishingthe usage of equipments, salaryof the
employeesandrentingstore spaces.
 Cash Management
o Theypaymentof the customerswill godirectlytothe
bankaccount of National Bookstore,sotheywillreduce
the riskof theftinthe organization.

20. Projected Annual Cost of the System
Costing
Computer 20,000 x 5= 100,000
Software 4,000,000
Maintenance 1,000,000
Delivery Equipment 2,000,000
Total: P6,100,000
Salary per Month
Position Salary
SystemManager 40,000x12= 480,000
SystemManagementTeam 3x 25,000= 75,000x12= 900,000
Accountand BankingPersonnel 25,000x12= 300,000
Warehouse Manager 30,000x12= 420,000
Delivery 3x 11,583= 34,749x12= 416,988
Total: P2,516,988
TOTAL COST: =P8,616,988
The total cost that will accumulate toperformorlaunchedthe
on-line retailingsystemwill be P8,616,988.00, the 70% of it will came
fromthe purchase of the systemsoftware,maintenance of the software
and deliveryequipment.

21. Recommendations
Aftergatheringinformationtoprojectthe future salesof the
National Bookstore andtoidentifythe costthatthe new systemwill
incurin the company,we suggestthatthe managementshouldadopt
immediatelythe newproposedsystemwhichis“National Bookstore
Approachto Online Retailing”.
The study showsthe differentbenefitsandadvantagesthatthe
national bookstore will achieve if theywill executethe system
immediately.
Since to maximize andtominimize profit isthe mainpurpose of
everybusiness,we stronglyrecommendof proposedsystem,because
by adoptingthissystemthe companywill reachawiderrange of
customerthat can generate amore sophisticatedsalesanditcanalso
provide greatercustomersatisfactionandbrandawarenessandthey
can reduce theiroperational costbyeliminatingthe differentfactors
affectingtothe deliveryof the producttothe consumerslike renting
office spaces,usage of equipmentandsalaryof employees.
Online retailingisthe new trendtoday,ithelpseverybusiness
to maximize andexercise theirpotential inordertoreachtheirgoals
efficiently.Itwill bringabiglift tothe managementandcompanyof the
NBS if theywill gobeyondthe box andadaptin the new trend.

22. Conclusion
The increasingrate of the customerswhoare buyingonline to
satisfytheirneedwasjustaproof that“Internetisa good Place for
Business”.A recentstudyshowsthat4 percentof the consumerwho
are buyingonline buysbookswhichisinthe topten listsof the items
the consumerbuysonline isagreat statementthatonline retailingwas
a good place forthe industrywhichthe National Bookstore belongs
with:
 Therefore,we conclude thatby adoptingthissystemthe
National Bookstore will achieve agreaterprofit byreachinga
widerrange of customers innextthree years,coveringtheir
expenses inlaunchingthe new system.
 We lookforwardtothat in the nextfew years,the NBSwill
be heldas one of the biggestOnlineBooksandSchool
SuppliesRetailerinAsia.
 The NBS will generate oracquire anew competitiveedge
againstitscompetitorsinthe area of InternetMarketingand
E-commerce.
 It will alsoopenthe doorforonline advertisementfor
National Bookstore.