Change Proposal

Change Proposal

Norman Maynard

HRM/310

March 9, 2015

Tiffany Mytty-Klein

Change Proposal

Since a portion of its tactical development proposal to draw additional consumers, Kudler Fine Foods, a gourmet grocery supermarket founded in Southern California, Kathy is contemplating plans to engage alongside neighboring farmers of organic produce to attain the finest in value food for her customers in addition lead her company to the next phase.  If Kathy reaches the choice to deal with local farmers, then changes can be announced into the business's total operational organization.  Every facet of Kudler Fine Food's structural organization from simple business procedure to the supply chain and quality control practice will be involved by the creation of a contractual association with local organic farmers.  

Achievement of this enterprise will hinge on the judicious examination of modified operations supervision procedures, supply chain behaviors, and quality control procedures.  This will try to categorize Kudler's existing primary business systems, and describe how the new strategic growth plan will change those procedures.  These additionally explain just how this ruling would change Kudler’s supply chain.  Lastly, it describes the quality control tools and operation values that Kudler will require setting in position to safeguard the success of its procedures.  The decision to incorporate organic produce into the stores will be analyzed to decide whether the entire produce department will become organic or provide both chemically treated and natural options to the consumers.  The team will need to identify how inventory will be affected, if one type of produce will be purchased over another, and what the real shelf life is for organic produce.  In time, the consumers' purchases will forecast the answer of supply for the stores.

For Kudler to be triumphant in its move towards working with local farmers for their organic food produce, it will have to make some calculated procedure changes.  Those process changes consist of purchasing, inventory control and estimating, distribution planning, packing, and lawful concerns.  Kudler Foods presently has no central purchasing division.  While normal procurement practices are in position, respectively the three department managers in each store controls the requirements for the items their department offers and places purchase contracts right with suppliers make use of a standard purchase contract document.  It remains the responsibility of the department managers to get the best value, condition, and delivery possible.  Department managers will need to maintain a balance of inventory control, budgeting, and consumer request/orders that do not lead to loss of profits for the stores.  Kathy and her team of managers pride themselves on providing the freshest produce to the consumers, for this goal to continue, they will all need to monitor the trends of specialty food choices and predict what the customers will want before the users themselves know it.

Therefore, it may be in the best interest of Kudler to secure a procurement team that will deal, along with Kathy Kudler, directly with the supplier and implement a process that would involve the procurement team taking request from the departmental managers and handling the process from then on out.  The responsibility of the purchasing manager will be to negotiate all contracts with suppliers and ensure that the products purchased meet quality standards, and to ensure adequate inventory are on hand at all stores to satisfy consumer demands.  The manager will also be responsible for forecasting purchasing and inventory criteria, a dramatic shift in the way Kudler currently does business.  Efficiency of sales possibly will be achieved because individual store managers would no longer purchase from the farmers individually.  Instead, the method would be combined into a particular department that prepares every part of purchasing on behalf of efficiency, cost savings, and process management.  The inventory management process would also be affected by consolidation.  This is a difficult system to use when forecasting since marked increases and decrease is sales can cause significant errors at these junctures.  This subject triggers a challenge during once-a-month procedures review discussions where every month transactions are checked for the previous 12 months.  The monthly forecasts are prepared from these for the next three months.  Quarterly forecast and six-month forecast are also made during this time.  This is not the most accurate forecasting method and has resulted in deleting some merchandise and the reduction of others.  The current practice could have an adverse effect on Kudler Fine Food's profit margin and net income.