Operations Management: Kudler Fine Foods
Kudler Fine Foods has become familiar with tremendous growth since its beginning. In order to maintain this level of growth, Kudler Fine Foods must seek to improve the efficiency of its operations. Kudler Fine Foods has decided to begin contracting with local growers bringing organic produce. This decision, like many others, will have a tremendous impact on the daily operations at Kudler Fine Foods. This paper will make note of the business processes directly affected by this decision. It will also detail both the ways in which the supply chain at Kudler Fine Foods will be affected and the quality control standards necessary to ensure the effectiveness of the implementation of these contracts with the growers.
“Understanding how processes work is essential to ensuring the competitiveness of a company. A process that does not match the needs of the firm will punish the firm every minute that the firm operates” (Gomez-Meija & Balkin, 2002, p. 5). To ensure that the processes match the needs of the company, changes will need to be made to several operations at Kudler Fine Foods, including purchasing, inventory, quality control, and process ownership. Though there are some processes in place already, the most significant changes will need to come in the areas of purchasing and inventory.
The decision to enter contracts with local organic produce growers directly affects the purchasing process at Kudler Fine Foods. Currently, the purchasing power at Kudler Fine Foods lies in the hands of each of the three department managers at each of the company’s locations. Each manager determines what products they will purchase and from whom they will purchase the products. The store managers look at their current inventory and customer requests and determine what items to order. The managers then search out the supplier that offers the best quality for the price. When ordered, the managers...