University of Phoenix
July 28, 2008
Kathy Kudler has maintained the vision of Kudler Fine Food Foods for many years now. With Kathy’s implementation of a strategic business plan, she was able to open three stores in three different locations. With the store in Del Mar not doing as well as expected and the thought of opening new stores in other geographic locations, it is time for KFF to explore other business opportunities.
With the opportunity to begin a new business venture, KFF will begin implementing a new plan that involves partnering with local growers of organic produce. With this new venture will come many changes to KFF’s business processes. According to Chase, Jacobs, & Aquilano (2006) a process is “any part of the organization that takes inputs and transforms them into outputs that are of greater value to the organization than the original inputs.” The part of KFF’s business processes that have the potential to be affected are the purchasing and inventory management areas.
KFF currently does not have a purchasing department in any of the store locations. Although KFF uses a standard procedure for purchasing products, its purchasing procedures are not well-organized. The role of the store managers is to determine which items to sell as well as to ensure that the best price and quality of the products are being delivered. The store managers at KFF are also encouraged to work together to place orders and ensure delivery of its products. If acceptable to the suppliers, order forms are to be mailed, handed to the suppliers, faxed or sent via e-mail. These order forms allow for KFF to maintain records of orders placed as well as serve as documentation for payment provided to the suppliers. KFF will need to revise its purchasing procedure and make it the same for all of its suppliers. The staff at KFF will need to make use of all inventory reports that can be use to track the demand of the products well as to track inventory associated...