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Kudler Fine Foods is a local upscale specialty shop in the San Diego metropolitan area. Kudler provides gourmet foods, beverages and products designed for the gourmet cook at its three stores located in La Jolla, Del Mar and Encinitas and at reasonable price. The stores are stocked with the very best domestic and imported food available and are divided into the following departments: fresh bakery and pastries, fresh produce, fresh meat and seafood, condiments and packaged foods and cheese and specialty dairy products. As part of Kudler’s growth strategy to expand its customer base and improve its competitive position, the company has decided to contract with local organic farmers to provide fresh organic produce in its stores. This paper will discuss the effects this decision has on Kudler’s business processes, supply chain and quality control tools and performance standards.
Business Processes
The business processes at Kudler that could be affected by the decision to contract with organic farmers are purchasing, inventory management and advertising. Deciding to offer organic produce to their customers requires that Kudler be aware of the National Organic Program regulations. Though as retailers they aren’t required to become certified, they are still responsible for verifying and maintaining the organic integrity of the products they purchase. Kudler’s purchasing function is currently decentralized. At least in the area of organic produce, the purchasing would have to become centralized to ensure cost savings, efficiency, compliance and most important establishment of relationships with top quality certified organic growers to ensure Kudler’s only offers the highest quality certified organic pro ...