No proper tracking and accounting of inventory is possible. Early payment discounts are also missed. The lack of documentation for the items picked up is not helping the departments to stay within budget. Corners are being cut with the way the system works. Two micrometers are lost because the expeditor most likely has picked up them up at the receiving dock and has taken them directly to the engineers.
Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods. Legal liability is important when conducting an IPO and those offering the shares can be personally sued. The expenses continue after the company goes public with the SEC reporting requirements. Kathy Kudler will not only lose control of some of the decision making for Kudler Fine Foods with an IPO, but she will also lose some of the profits, as a portion will go to the
Considering the Bullwhip article: As a group, the feeling was not so good at the end of the game. Having to make decisions without adequate information provided brought about results that made us feel like bad supply chain managers. However it was educating. When the game started the orders that came to the retailer for the first 2-3 weeks were consistent and made the retailer not to order more from the wholesaler and this passed across upstream the supply chain. This changed suddenly and the orders started bombarding, causing tension on the retailer to order as much as possible from the wholesaler to supply demand to customers.
Virtual Organization: Kudler Fine Foods FIN/370 Kudler Fine Foods is an exquisite food company who sells a huge selection of the freshest ingredients as well as any necessary equipment used to make a gourmet meal. Kudler has three locations, and they serve the metropolitan area of San Diego. Each location provides services that range from a European style Bakery to a large selection of wine. It is a business currently held privately. However, they are anticipating and wanting to grow and expand their operation, as their desire is to become wealthy far beyond what they can imagine or dream.
After reading the Cerjugo case, there are a number of symptoms that can be identified throughout the case that suggest that the multi-million dollar manufacturing and distribution company is experiencing major difficulties.The first and most obvious symptom is the fact that the the juice sector of their company has not been able to reach its targeted profir margin for 2 years in a row.Another issue cerjugo encounters is high turnover rates in their sales force,including his manager of juice manufacturing and employees who do not feel motivated enough to fully understand the juice attributes which is hindering Cerjugo’s brand awareness.The lack of the employee understanding of the juice attributes hurts the company’s brand because employees are not able to effectively convey all the necessary information about the product to the consumers.furthermore cerjugo’s brand awareness will keep hindering as long as consumers are unaware of the “freshness”,all natural ingediants and the overall high quality of the juice which is Cerjugo’s main competitive advantage over their rivals. Root causes the root cause of the lack of employee understanding of the overall juice divison is the fact that theer is no job specialization what so ever.Each member of the sales force is required to sell beer and juice,however most of the employees were hired from when the company only sold beer and prefer to stay within their confort zone. The reward system the company is currently using is the root cause of the unmotivated salesforce and the high turnover rates,Cerjugo uses a performance bases reward system based on the beer and juice sales an employee makes. Another root cause is the organizational structure that Cerjugo curremtly uses. All the front line employees for both beer and juice production seem to be reporting back to only Carlos Menga the beer manager.The disorganization of
By the morning of the third day, the Cobbs were starting to question the wisdom of launching the product at all; they had already invested a lot of time and money in the product, and without any substantial sales, there seemed little reason to continue. When Cabela’s expressed interest in the product, everything changed. At least one leading retailer was prepared to carry the product. For Russ, the opportunity was a clear win; while Cabela’s would need a retail price of $7.99, the product would be in the market and selling. Matt, however, wondered if the price was too
Wilkerson Company’s business is manufacturing of valves, pumps and flow controllers. Due to a high competition on the market the company had to lower the prices. The pre-tax margin dropped to less than 3% and gross margin fell below 30%. The company is using simple cost accounting system that cannot provide correct analyses of the company’s profit structure. With this system direct material and labor costs are standard prices.
Greggs PLC and its Current Marketing Objectives History Greggs was founded in the 1930s by John Gregg as a family bakery business in Gosforth, Newcastle upon Tyne and is now the UK’s leading bakery retailer, with approximately serving 4 million customers a week and with 1000 shops nationwide. They have eight divisions throughout the UK from Greggs of Scotland, to Greggs South-East with outlets down to south coast of England. They have recently expanded their bakery into continental Europe with the opening of four outlets in Belgium. After John Gregg’s death in 1964 his son, Ian, took over the management of the business. Under Ian’s leadership, the company embarked on an ambitious expansion plan, first in the North East and then in other regions of the UK.
After facing the problem, the CEO tried to think about a solution because first, he couldn’t convince the suppliers to make more effort because KHF was not considered as a large supplier for them and second, the company couldn’t deal with other suppliers because KHF’s customers were very exigent and can make the difference even if the products are similar. The region of KHF’s distribution area had been broken into six segments. Edenton which had a total sale of 18%, Elizabeth City with 21% of total sales, Williamston had 8%, Kitty Hawk 22%, Kill Devil Hills 15% and Nags Head 16% of total sales. KHF’s business was seasonal because the major restaurant activity of the Outer Banks catered to summer tourism. As we can see in the Income Statement, the company’s net sales increased from 2002 to 2003, the operating expenses were higher in 2003 but the net income was
A buffer inventory will protect constraint from a work shutdown caused by a shortage of processed materials coming from upstream workstation or by the fluctuation of the demand Product mix changes: Introduction of new products could lead to the purchasing of additional equipment which lead to an incremental increasing in fixed cost. Therefore, we should careful consider whether we should put the project in to implementation or not or whether the revenue could cover the increasing in fixed cost. In-sourcing decision: if the company want to add the latest technology in the product, they should not consider the in-sourcing because it affects key partnerships – semiconductor supplier 2. If excess capacity costs are excluded from product cost, how should these excess capacity cost be accounted for and made visible to management? The excess capacity arises due to larger productivity or due to imbalanced equipments within the department.