Kudler Purchase Process

Kudler Fine Foods Purchasing Process and System

Maria E. Escobar

University of Phoenix (UOP)

BSA/502 – Business Systems II

March 01, 2010

Daniel Martin, MBA

Kudler Fine Foods Purchasing Process and System Overview

Kudler does not have a purchasing department in any of the stores although standard purchasing procedures are in place. Each of the three department managers in each store determines requirements for the items their department sells and places purchase orders directly with suppliers using a purchase order form that is standard between the three stores. It is the responsibility of the department managers to obtain the best price, quality, and delivery possible. They also receive and verify all orders in terms of if they received the correct items and quantities and in undamaged conditions. Received items are documented on an Order Received form and sent to Accounting so that invoices for the items can be paid (Apollo Group, Inc., 2003).

The three department managers check with their counterparts at the other stores on the pricing, quality, and delivery of the merchandise they order. They are also encouraged to combine orders between their stores if they believe there would be a cost savings resulting from ordering a larger quantity of a particular item or multiple items. Kudler’s owner, Kathy also places purchase orders. Kathy purchases relate mostly to unique, capital, or maintenance items that may be required by an individual store or for items used by all three stores, like bulk Purchase Orders or Receiving forms (Apollo Group, Inc., 2003).

Purchase order forms are either mailed, handed to supplier salesmen, faxed to suppliers, or sent by E-mail if acceptable to suppliers. Whatever the method used, a purchase order form is always filled out initially and becomes the key tracking and financial document for an order (Apollo Group, Inc., 2003).

Kudler Purchasing Procedures Recommendations

After analyzing Kudler’s...