Essay About Sure Adequate Supplies Of Merchandise And Standard Purchase Order Form

Operations and Logistics for Kudler Fine Foods
Essay title: Operations and Logistics for Kudler Fine Foods
I.Goals:
To enhance the ability of Kudler Foods to reliably and profitably create and deliver competitive advantage to the marketplace.
Spotlight operational capabilities that will generate profitability and build brand loyalty to Kudler Fine Foods
1.Purchasing
Standard Purchasing Procedures
Managers in each store determine requirements
Managers place purchase orders directly with suppliers using a standard purchase order form
They receive and verify all orders
Correct items
Correct quantities
Undamaged condition
Documented on an Order Received form and sent to Accounting
Accounting pays the invoices
Resposibilities of Managers
Obtain the best price
Obtain the best quality
Obtain delivery when possible
Check with their counterparts at other stores.
Combine orders for bulk discounts
Kathy places purchase orders
Repair items
Unique items
Capital items
2.Advertising
Newspaper advertisements are prepared by Kathy
Specials are offered at all three stores simultaneously
Weekly Operations Review Meetings
Kathy coordinates items on sale with store managers
Kathy makes sure adequate supplies of merchandise will be on hand
Merchandise can be shifted between stores should one store have a higher demand of an item than another
3.Accounting
Data is collected by the point-of-sale terminals
Record all items
Record all quantities
Record all prices
Record taxes
Record totals for all daily sales transactions
4.Inventory Management
Excess inventory
Represents money being tied up in merchandise that is no generating income
Excesses can lead to write-downs of the merchandise
Department Manager Responsibilities
Maintaining high customer service levels for the items they sell.
This means carrying high levels of inventory that are not excessive
Kathys policy is that levels should be adequate to ensure that stock-outs do not occur more than 2 or 3 times each year.
This is discussed during monthly service meetings
Adjustments to merchandise stocking levels are made if warranted
Customer service level of 95% is the general goal for number of items carried
95% of the time a customer will find what they are looking for
5% of the time there will be no merchandise due to stock-out
Stores decide on item-by-item basis whether a rain check will be offered
5.Forecasting