Background
Kudler Fine Foods is a local upscale specialty food store located in the San Diego
metropolitan area. Kudler Fine Foods was started by Kathy Kudler. Her vision was to
create one store that would stock a wide selection of the freshest ingredients as well as all
of the tools a gourmet cook could ever want. Kathy was certain that combining the
convenience of one-stop shopping with reasonable prices would be a recipe for success.
(Kudler Fine Foods Web) Since 1998, Kathy Kudler has slowly increased her demographic
with 3 stores now being open in Lo Jolla, Del Mar, and the newest store in Encinitas, CA.
Process Changes for 2007
Kathy Kudler has identified the possible need to provide not just fresh produce but also an
organic variety. As media reports continue to voice the concern with what Americans eat
and how pesticides are affecting our overall health, Kudler Fine Foods wants to stick to
their mission of providing a wide variety of the freshest ingredients. Market Surveys
completed by Kudler Fine Foods in 2006 concluded that The merchandise sold is a good
value for the money, 38% disagreed with this statement. (Kudler Fine Foods Survey2006).
To provide organic produce and ultimately make a profit, Kathy Kudler needs to identify if
organic produce are going to replace the entire produce inventory or if the produce
inventory will be a combination of both organic and chemically altered fruits and
vegetables. Once a decision is made the following business operations are going to need to
altered; Purchasing, Merchandise Selection, Forecasting, and Facilities.
To properly benefit from the Kathy Kudler initiative, the Purchasing department will need
to identify how Inventory, Suppliers, Supplier Relations, Quality are to going to make this
initiative successful. To provide organic produce to the customer, decisions on inventory
have to be made. Produce does not have an endless shelf life so the product that will be
purchased by organic growers needs to be a product that is cost effective and will be
purchased by the customer. The price for organic produce is guaranteed to be higher since
organic growing methods yield less sellable product then chemical means. If Kudler Fine
Foods is going to remain competitive, the organic produce prices must be attractive. With
three stores and many organic farms in the San Diego area, Kathy Kudler is confident that
competition will result competitive prices.
Besides providing an inventory of competitively priced produce, an inventory of produce
needs to have a shelf life that is equivalent or exceeds the shelf life of the chemically
