Change Proposal

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Consolidating purchasing into one department could speed the decision-making process and partially relieve department managers currently responsible for the maintenance of these inventory levels. Consolidation could help Kudler improve project list. Surplus inventory is constantly a point of concern because it symbolizes company funds remaining attached to stock that is no longer creating revenue. This might prove significant in the wholesome organic food store where produce shelf life will require to be forecasted another way from the previous orders of chemically treated products. Kudler should also consider the introduction of Enterprise Resource Planning (ERP) computer software.

This can result in a reduced period between orders and payment. It can also reduce the staff necessary to perform order processing, cut inventories in addition to improved customer service for all of the company. ERP will be beneficial to Kudler Fine Foods supervision by improved forecasting upcoming supplies, supplier and marketing pricing, and other valuable financials. An ERP procedure may well significantly increase Kudler Fine Foods' estimating system and increase the said timeframes.

Corresponding to the United States Department Agriculture's Organic Foods Production Act of 1990, Organic refers to the manner "farmers grow and process fruits, vegetables, grains, meat, poultry, eggs and dairy products“ (National Organic Program, 1990). The Act institutes that for a product to be marketed as organic, it must "be produced only on certified organic farms and handled only through certified organic handling operations" (National Organic Program, 1990). The Kudler team will have to ensure that the quality of the advertised organic products is indeed meeting standards set by the USDA prior to releasing for sale. Additionally, Kudler will need to identify each step of packing and delivery of the merchandise rotation from the local grower’s procedure, to period passed waiting for the trucks, to unpack the products, position of every product on the shelves, shelf life expectation of every product, and individuals involved in each step of the process. Kudler could use the Load Chart to assist in analyzing the necessary people who need to be involved in the successful delivery of products from the farms to the consumers.

Quality control is an important aspect Kudler must consider for a successful transition to the organic food market. Quality control is described as always supplying what the consumers requests while decreasing mistakes and consumer distribution wait times. Kudler should consider establishing a Quality Control Unit to examine the orders and certify that procurements go as flaw free as they feasibly can. There must be a quality control standard in position so that the appropriate procedure will be followed.

If the outcome of Kudler's decision is to proceed with the contracting of local growers for some of the excellent stores organic supplies, it will not be a decision that will threaten the stability of the business. The decision to create a contractual relationship with local organic growers will allow the company to implement and improve processes that will aid in the overall development and structural growth of the enterprise. Kudler will have to implement better ways operating. Therefore, any changes brought on by a possible contracting decision will make the store better rounded in terms of its business processes, supply, and quality control.

Reference

The National Organic Program (2007). NOP Regulations, Standards, and Guidelines. Retrieved March 4, 2015 from http://www.ams.usda.gov/nop/NOP/NOPhome.html

University of Phoenix. (2007) Virtual Organization Portal: Kudler Fine Foods. Retrieved March 4, 2015 from the University of Phoenix, Resource Week 3 web link, MBA 502-Managing the Business Enterprise.