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Operation Management

Essay by   •  December 30, 2010  •  655 Words (3 Pages)  •  982 Views

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Introduction

Kudler Fine Foods is a growing company striving to provide its consumers with the finest foods and ingredients possible. After experiencing substantial growth, Kudler Fine Foods is now interested on increasing the devotion and productivity of its consumers through the expansion of consumer purchase succession. Kudler Fine Foods plans to start contracting with local growers of organic produce to serve their customers even better. Consumers are choosing natural and organic products, because of the positive health characteristics that they provide. Kudler Fine Foods believes that it is essential to follow the movement to maintain their loyal costumers.

This paper will analyze the affects this decision has on Kudler's business process, supply chain activities, quality control systems and performance standards. In order to attain this aspiration, the existing business processes will need to be examined and recommendations will be made to change numerous areas to guarantee accomplishment on the new strategy. Business processes at Kudler that could be affected by the decision to the contract with the organic produce growers are purchasing. The first step in the design of Kudler's business process is to build a graphical presentation of the business process that meets the business requirements for the project.

Kudler Fine Foods Business Processes

A business process is a set of coordinated tasks and activities, conducted by both people and equipment, which will lead to accomplishing a specific organizational goal (Search CIO, 2007). Currently Kudler has a decentralized purchase process; there is no purchasing department in any of their stores. Although Kudler does not have a purchasing department, each store manager decides the product necessities for all the items to be accumulated in each department. Purchasing of products is separated between the three locations and department managers at each store. The current process would not be efficient if each individual store manager would have to purchase organic produce individually from the local growers.

Purchasing managers plan and direct the task of purchasing goods for resale to consumers. Purchasing managers must thoroughly understand grocery store foods, other items, and each store's customers. They must select the best suppliers and maintain good relationships with them. Purchasing managers evaluate their store's sales reports to determine what products are in demand and plan purchases according to their budget (Bureau of Labor Statistics, 2007). Kudler presently has a purchasing manager and a purchasing assistant that are located at the administration office. With plans for a new contract, Kudler must implement a productive and efficient procedure

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