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Operation And Logistic Issues For Kudler Fine Foods

Operation and Logistic Issues for Kudler Fine Foods

Operation and Logistic Issues for Kudler Fine Foods
Kudler Fine Foods Background
Kudler Fine Foods is an upscale specialty food store consisting of three locations in La Jolla, Del Mar, and Encinitas, which are in the San Diego, California metropolitan area (Apollo, 2007).   Kathy Kudler founded Kudler Fine Foods in June 1998 at the La Jolla location.   The retail food store proved to be a successful venture, so Kudler expanded.   Del Mar was opened in 2000, and Encinitas opened in 2003 (Apollo, 2007).   Each store contains about 16,000 square feet stocked with the finest imported and domestic foods in departments such as, Bakery and Pastries, Produce, Meat and Seafood, Condiments and Packaged Foods, and Cheese’s and Specialty Dairy Products (Apollo, 2007).   Kudler Fine Foods must have a loyal customer base as demonstrated by a $2.3 million gross profit in 2003 (Apollo, 2007).   According to Kudler’s growth strategy, they plan to increase their profit margin in the next year by adding high-margin services and reducing costs by providing more efficient operations (Apollo, 2007).   Kudler Fine Foods’ continued success will stem from more efficient operation and logistic systems.
Current Operation and Logistic Systems
Accounting Network
Kudler Fine Foods’ original business plan accounted for $50,000 to hire a consulting firm, Smith Systems Consulting, to install a Retail Enterprise Management System (REMS) in the initial store (REMS) (Apollo, 2007).   A REMS allows system administrators to manage devises at different data centers (Kakadia, 2002). A scalable Retail Management System (RMS) was chosen to manage operational devises communicate to the server which contains the accounting software (Apollo, 2007).   The following two stores also use the Retail Management System. The three stores are networked, so sales and accounting information can be seen and utilized from a central location. The accounting information...