Business Plan
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Kudler Fine Foods Problem Statement
Richard S. Stainback Jr.
MGT521
April 11, 2011
Shelby Frutchey
Kudler Fine Foods Problem Statement
The problem addressed here is the lack of a sustainable Supply Chain Management (SCM) system at Kudler Fine Foods (KFF). There is an apparent need for an experienced supply and logistics manager for KFF to progress further as an organization. This person would act as buyer and inventory control manager.
After reviewing KFF’s strategic plan it is obvious this is a problem. Kathy states “she works seven days a week, visiting and working at each store sometimes daily.” (Kudler, 2003, page 3) Currently Kathy handles all of the buying for all three locations. This allows for extensive cost management however is not effective for time management. This responsibility deters Kathy from being able to actively control the business and forces her into a role of maintaining the business.
Part of the in-market strategy is to special order any product not available in the meat, cheese, or produce market. This ordering is outside the normal supply process and requires special handling and processing, again another responsibility to add to Kathy’s daily activities. Kathy is unable to interact with customers and staff due to the enormous time and effort required to maintain the SCM for KFF.
With the current expansion plans into Carlsbad it is imperative this issue is addressed post-haste. SCM is undergoing a fundamental transformation from tactical operation to strategic application. “SCM is seen to have a tremendous impact on functional performance (as measured in terms of lead time, cost, quality and flexibility) and on corporate performance.” (Melnyk, Lummus, Vokurka, Burns, & Sandor, 2009, p. 4269) Supply chain managers are asked to improve customer relations, continuity of supply, reduce supply risk exposure, and contribute to product and service quality. (Melnyk, Lummus, Vokurka, Burns, & Sandor, 2009,p....
Richard S. Stainback Jr.
MGT521
April 11, 2011
Shelby Frutchey
Kudler Fine Foods Problem Statement
The problem addressed here is the lack of a sustainable Supply Chain Management (SCM) system at Kudler Fine Foods (KFF). There is an apparent need for an experienced supply and logistics manager for KFF to progress further as an organization. This person would act as buyer and inventory control manager.
After reviewing KFF’s strategic plan it is obvious this is a problem. Kathy states “she works seven days a week, visiting and working at each store sometimes daily.” (Kudler, 2003, page 3) Currently Kathy handles all of the buying for all three locations. This allows for extensive cost management however is not effective for time management. This responsibility deters Kathy from being able to actively control the business and forces her into a role of maintaining the business.
Part of the in-market strategy is to special order any product not available in the meat, cheese, or produce market. This ordering is outside the normal supply process and requires special handling and processing, again another responsibility to add to Kathy’s daily activities. Kathy is unable to interact with customers and staff due to the enormous time and effort required to maintain the SCM for KFF.
With the current expansion plans into Carlsbad it is imperative this issue is addressed post-haste. SCM is undergoing a fundamental transformation from tactical operation to strategic application. “SCM is seen to have a tremendous impact on functional performance (as measured in terms of lead time, cost, quality and flexibility) and on corporate performance.” (Melnyk, Lummus, Vokurka, Burns, & Sandor, 2009, p. 4269) Supply chain managers are asked to improve customer relations, continuity of supply, reduce supply risk exposure, and contribute to product and service quality. (Melnyk, Lummus, Vokurka, Burns, & Sandor, 2009,p....