OPERATIONS FUNCTIONS

Operations Functions

Operations Functions

Introduction

Kudler Fine Foods is an upscale specialty food store located in the San Diego, Metropolitan area, founded in 1998 by Kathy Kudler. Its mission is to provide customers with the finest selection of foodstuffs, wines and related needs in an unparalleled environment.

In keeping with its mission, Kudler has decided to start contracting with growers of organic produce. As a result of this decision, Kudler will have to make adjustments to its operational processes.

Kudler Fine Foods plans to contract with local growers, which requires updated process analysis, supply chain evaluation, performance metrics measurement and quality control assessments. The approach of this paper is to familiarize the reader with operations management terminology, while focusing on suggested focal points for Kudler Fine Foods. Operational effectiveness must be accomplished for management to manifest strategic objectives.

Kudler Business ProcessesAccording to Chase, Jacobs and Aquilano (2005) a business processes span all the business functions from taking customer orders, handling returns, manufacturing, managing the updating of Web sites, to shipping products. Once the decision has been made to contract with organic growers, Kudler has to put in place procedures which will not disrupt the operational performance of the company; specifically, the following operations at Kudler are going to be affected: purchasing, advertising, accounting, inventory management, forecasting and merchandise selection and pricing.

The managers of each store (La Jolla, Del Mar and Encinitas) are charged with the responsibility of purchasing, advertising, inventory management, forecasting and merchandise selection and pricing of their store. The change of moving from non-organic to organic is going to have the following impact on each:

Process Analysis

Planning to buy organic produce from local growers will need special attention, just as any business activity does. Ideally the company hopes to reap the benefit of conveniences such as lower shipping cost, fresher perishable goods and lower merchandise surplus. Additionally, Kudler Fine Foods expects to nurture supplier/department manager relationships that might optimize strategy and inventory management. Thanks to the positive vision that Mrs. Kudler has, organizational processes have a chance to re-structure and flourish. “A process that does not match the needs of the firm will punish the firm every minute that the firm operates” (Chase et al., Chapter 5, pg 3).

When analyzing process, it helps to have a clear design of how tasks, flows and storage areas work together. For example, since excess inventory potentially costs money, the local suppliers must be aware of management's need for Just In time product flows (J.I.T.-goods arriving as needed). The J.I.T. technique can help reduce surplus, and this goal should be communicated to all participants in the supply chain. Employees need to understand how and why each function exists, along with consistent shared reminders of the need for stability regarding the interrelatedness of business activities.

Considering the stages of process for ordering gourmet foods, there will never be available time in between shipments and stocking. Dealing mostly in perishables, the produce departments will have to take advantage of the proximity of suppliers, while trusting ...