Operations Focus

Operations Focus

Shareece Barnes

BSA/502

November 10, 2014

Murali Ramachandran

Kudler Fine Foods does not have a purchase department for any of its stores. It does, however, have a standard purchasing procedure. Department managers from each store determine the requirements for their departments’ items, placing purchase orders from suppliers via a standard order form. Managers are responsible for planning, pricing, quality assurance, and ensuring proper delivery of items to their respective locations. These duties include verifying the items received are correct, in the right quantity, and in undamaged condition. Once items are received, they are documented on an Order Received form and forwarded to Accounting for payment of the invoice.

Department managers are encouraged to collaborate on purchase prices, item quality, and merchandise delivery. In addition, they are asked to combine orders for certain items in the interest of saving money. For unique, capital, or repair items requested by either one or all three stores, Kathy places purchase orders. These items include bulk purchase orders or receiving forms. Completed purchase orders are sent via mail, fax, or email to suppliers. An order form is required regardless of the method of order, and is used to track and document the order for financial purposes. The company would benefit greatly from reorganizing its current system and transitioning to a more up to date and expeditious system of purchasing. By moving toward internet purchasing, Kudler Fine Foods will save both time and money in several ways.

One way Kudler would benefit from internet purchasing is in its ability to locate new suppliers. With greater access to supplier listings and a global selection to choose from, the company can identify specific products and services that will best serve the needs of the company. This also allows the company to preview goods and services offered by the various companies prior to placing an...