Business_Plan

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. 4630) Having a dedicated individual focused on these areas would allow Kathy to focus on the Carlsbad expansion and Del Mar integration. Once the SCM problem is neutralized, KFF and Kathy can refocus on what makes them successful. Referencing the S.W.O.T analysis, strength 4 is “very customer oriented” and number 6 is “Kathy’s Personal relationship with the staff”, filling the SCM void would allow continued focus on these areas. This supply chain manager would also streamline opportunities number two and four, increase strength number three, and lessen weakness number one and three. (Kudler, 2003,p. 8) The referenced chart is found below excerpted from KFF’s strategic plan: STRENGTHS | WEAKNESSES | Our STRENGTHS are: 1. Small organization 2. No direct competition 3. Lots of choices for the consumer 4. Very customer oriented 5. Good store locations 6. Kathy’s personal relationship with the staff 7. Repeat customers | Our WEAKNESSES are: 1. Deal in mainly perishable goods 2. Specialty shops with high pay-roll 3. Small management team with lots of responsibilities 4. The Del Mar location is not doing as well as expected 5. Geographic expansion limitations | OPPORTUNITIES | THREATS | Our OPPORTUNITIES are: 1. Geographic expansion throughout California 2. Delegate purchasing process to someone with more time and experience 3. Offer more catering services 4. Add more product line as we grow 5. Spread our brand outside of California as we grow 6. Opportunity to be acquired | Our THREATS are: 1. Competing gourmet shops 2. The economy declining | References Kudler, K. (2003). Kudler Fine Foods Strategic Plan. La Jolla, CA: Author. Melnyk, S. A., Lummus, R. R., Vokurka, R. J., Burns, L. J., & Sandor, J. (2009, August 15). Mapping the future of supply chain management: A Delphi study. International Journal of Product Research, 47(16), 4629-4653.