Kudler Fine Foods’ Operations Focus
Kudler Fine Foods experienced significant growth since they were founded in 1998, and they need to review and upgrade their operations processes. Kudler’s operations management needs to determine if the best processes are in place for Kudler’s optimal profitability and growth. The following sections provide an analysis of the existing purchasing processes and systems, and offer recommendations for needed improvements.
Kudler’s Current Purchasing Process and Systems
Kudler has standard purchasing procedures in place but they do not have a purchasing department. Store managers negotiate price and delivery and consult with other store managers for the best deals, often buying in bulk to save money. Managers keep track of their inventory and purchase directly from suppliers using standard company purchase order forms (Apollo Group, 2011). According to Kudler, “Prepared purchase order forms are either mailed, handed to supplier salesmen, faxed to suppliers, or sent by E-mail if acceptable to suppliers” (Apollo Group, 2011, para. 4). Managers are responsible for making sure the merchandise is received and recorded into the system. “Received items are documented on an order received form and sent to Accounting so that invoices for the items can be paid” (Apollo Group, 2011, para. 1).
Internet-based Purchasing Concepts and Implementation Processes
Purchasing can be a complex and expensive process. Kudler could benefit from Internet technologies that allow companies to streamline their purchasing processes. According to Cisco, “By automating the procurement process, companies can share data with their suppliers and better understand their supply and demand patterns” (Cisco, 2001, p. 3). When companies need to reduce cost, procurement is often the first place they investigate. Automating the procurement process allows management to negotiate better deals, search for suppliers who offers the best cost and...