PT X is Indonesian cutting tools importer, which sells various kinds of cutting tools, such as Carbide End Mill and Reamer. This company is facing two problems. The first is inefficient order process. The second problem is inefficient inventory update, which takes about eight minutes. Logistic Manager double checks the product quantity by counting physical product, to make sure that the quantity is updated. This process affects both order and procurement process. The objective of this study is to propose a new system, which will be able to perform simpler business process and reduce completion time. Modified Waterfall Approach of System Development Life Cycle (SDLC) was chosen, as it is suitable for well – understood processes, where doing overlapping phases is permitted. This study develops UML Diagrams, also medium and high-fidelity prototypes. User Interface Testing, (consists of learnability, error, memorability, and satisfaction measurement) was done to examine system performance. Result shows that the proposed system performs better than current system. The completion time of create order is reduced 27.51% to 3.11 minutes, availability check is reduced 75.99% to 2.3 minutes, incoming inventory update is reduced 99.67% to 7.69 seconds, and outgoing inventory update is reduced 94.95% to 12.46 seconds.