Operations Management: Kudler Fine Foods

Operations Management: Kudler Fine Foods

MMPBL/502

September 20, 2010

Professor Rick Johnson

Operations Management

Kudler Fine Foods plans to start contracting with local growers of organic produce. If it takes this step, operational changes will be necessary and properly preparing ahead of time will save Kudler from losing money or increasing prices. Additionally, the supply chain stands to face some challenges; Kudler must choose growers that have a track record that can be analyzed for stability and should have more than one grower providing produce. If a grower is inconsistent or does not have contingency plans, Kudler stands to be in short supply. Some additional business issues to consider and implement are quality control tools and performance standards to ensure the effectiveness of its operations. Kudler has to identify and review the business to incorporate properly the local growers’ organic produce. If done well, the domestic organic addition will benefit the organization and enhance the unique offerings already being made.

Business Processes Potentially Affected

“A process is any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs” (Chase, Jacobs & Aquilano, 2006, p. 154). The business process for Kudler is a series of activities, many of which are occurring simultaneously. Kudler has many types of products available and more can be requested. From a financial standpoint, Kudler must keep in mind the associated costs that arise from using organic foods that are customarily more expensive. If the particular item for which this organic food is used requires a multi-stage preparation such as a hummus spread, Kudler must adapt their system to gauge proper quantities needed at any given time; over preparation will result in monetary loss in that organic food has a shorter shelf-life because of the absence of preservatives. If...