Kudler Fine Foods: Problem Statement System

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Problem Statement Kudler fine Foods U. of Phoenix MGT/521 Problem Statement Kudler Fine Foods is a premier gourmet grocery store, with three stores in California, serving discriminating customers in search of the finest produce, meats, cheeses, and wine. After opening her first store in La Jolla, in 1998, Kathy Kudler expanded the business to the locations of Del Mar and Encinitas. The expansion of the company has shown a need for new approaches by management, in order to insure the future growth and profitability of Kudler fine foods. The growth of Kudler Fine Foods is due to the values of the organization, which is a very customer orientated business, focusing on the current customer’s needs, and desires, with anticipation…show more content…
Ordering for three stores is difficult due to the time involved, and as the business grows to new locations, a more efficient manner to order is required. The best the solution to this problem is to use modern technology, and use an automated ordering replenishment system. One company that provides this service is Red Prairie (www.redprairie.com).This type of technology will allow Kathy to generate automated suggested orders based on sales, seasonality, stock plan, and quantities on hand. Food inventory planning will enable Kathy to have individualized ordering plans for each store. Food cost managers will generate sales forecasts to reduce the carrying costs of inventory. Perpetual inventory management will track all in store inventory transactions. This includes ordering, receiving, selling, cycle counts, and inventory adjustments. An automated inventory system would allow Kudler fine foods to meet current and future customer demands. This would also save money on hiring and training employees to order products for the stores. It will also save time spent on the manual ordering process, and avoid costly mistakes. An automated inventory approach quickly reacts to stock issues to automating general orders, changes in customer demands, electronically submits the orders to the suppliers, and includes program controls to ensure the products are ordered from specified suppliers, and are paying the contracted…show more content…
Gourmet food is more expensive to purchase, than food at a regular grocery store. A gourmet specialty shop has higher fixed costs. Since there are no food preservatives in the food sold there, there is a high turnover rate for food expiration dates. The product waste potential is high, and ordering needs to be constant. An automated ordering system will help with this issue, as well. Having qualified people in positions such as the baker, wine steward and butcher, are essential to the core values of Kudler Fine Foods. Having to pay them, does make the payroll higher, but it is a cost, that this business will have to pay. Having these people is one reason customers shop there, for the advice, and interaction these people provide. Qualified in store experts, is something that sets this business apart from other stores. It is part of why this business is
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