Operations Management
Kudler Fine Foods is a gourmet food store that has experienced tremendous growth over a 5 year span. Kathy Kudler, the president and owner, is currently seeking to improve the efficiency of its operations and expand its services and customer base (Apollo Group, Inc, 2003).To achieve its proposed goals, Kudler has decided to contract with local organic farmers to provide its consumers with fresh organic produce in its stores. This paper will discuss the possible affects this decision may have on Kudler's business processes, supply chain and quality control system.
The Impact on Business Processes
In deciding to contract with local organic growers, Kudler's purchasing processes and inventory management can be affected. Currently, Kudler does not have a purchasing department; instead the company has developed standard purchasing procedures. Kudler's purchasing process is divided among its three stores. The department managers, at each store, are responsible for determining the requirements for items their department sells and places. The department managers also have the responsibility of obtaining the best price, quality and delivery of the supplier. The department managers must work with other Kudler locations on the pricing quality and delivery of the merchandise they order. If possible, the department managers should combine orders between stores if they foresee a possible cost savings that would result from bulk ordering (Apollo Group, Inc, 2003). . If Kudler's current purchasing process remains after implementing the decision to purchase from local growers, Kudlers purchasing process can become chaotic.
In a food study conducted by the University of Nebraska (2003), foodservice establishments were shown to face many challenges and obstacles in the purchasing process from local growers. The most significant obstacles were distribution and delivery and pricing. When many of the foodservice establishments were asked about...
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