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Table of Contents
i. Introduction.
ii. Business process affected and how they would be affected.
iii. Effects on Kudler supply chain
iv. Quality control tools and performance standard needed.
v. Conclusion.
vi. References.
Introduction
Kudler Fine Foods founded by Kathy Kudler in 1998 to provide ingredients needed for
gourmet meals in one location. Kathy began the company with one store, which turned a
profit in the first year. The company now consists of three stores in different cities of
California. The organization and culture at Kudler focuses on the customer and the
employees. Based on it success in the business, Kudler intends to contract with local
growers of organic produce, and in doing so bypasses the old method of purchasing their
produce. If you dont see it, let us know and we will special order the item for you. (Kudler)
Based on this idea, one can conclude that previously, Kudler goes through middlemen to
purchase their products and to special order a produce requires you to have access to a
large produce house that carries all the products needed such that an order can be placed
and delivered immediately. A process is any part of an organization that takes inputs and
transforms them into outputs that, it is hoped, are of a greater value to the organization
than the original inputs, according to Chase (2006). The new process of purchasing must
be able to fit this definition and the results also must be noticeable in the outputs.
Business process affected and how they would be affected
The business process that would the affected would be the purchasing department.
Purchases for goods and services are limited to approved vendors. (Kudler) Kudler had
developed a list of approved vendors that they have conducted produce business
transactions with over the years and now that they want to but directly, Kudler mode of
operation must change. Previously, Kudler Purchasing Function receives the sales data
from each location at the end of each shift. The sales data is combined, the applicable
inventory accounts are credit, and the business rules determine if a purchase order should
be submitted.
Now, that Kudler buys directly, they need to have a modify the business rule concerning
business order. Produces are seasonal, so in order to have all year long fresh produce,
storage methods have to come into play. Failure to develop a fully functioning storage
system can lead to a loss in terms of perishable inventory in terms of the produce. The
