Bsa 375 Wk 5 Team

Only available on StudyMode
  • Download(s) : 332
  • Published : May 16, 2013
Open Document
Text Preview
Kudler Service Request

BSA/375
April 25, 2013

Introduction
Kudler Fine Foods has requested a system to launch its new Frequent Shopper Program. This new initiative will track purchase behavior at the individual customer level. Through a partnership with a loyalty points program, Kudler will be able to offer their most valued customers high value incentives. Behavior patterns discovered from tracking purchases will enable Kudler to refine its processes and offerings to customers. Customers prefer Kudler’s Fine Foods because of the high quality foods. Rather than offering discounted prices for loyalty points redemption, Kudler will offer high value gifts to customers. This will promote the exclusive characteristic that the company has cultivated from its selective inventory. Current Situation

When a customer checks out at the register, no information is gathered about the purchase. The amount of products sold is not tracked or cross referenced against the company’s inventory. There are three department managers in each store that determine requirements for the items their department sells. Managers are responsible for finding the best price, delivery, and quality from various vendors. Each manager places the order directly with the vendor, receives, and verifies all orders when delivered. Items received are sent to Accounting so that the invoice can be paid after being documented on an Order Received form. Managers are expected to check with other managers about pricing, delivery, and quality on products. Managers are also encouraged to combine orders if a bulk order will result in a discount; however, there is no system in place for managers to cooperate with each other. The degree to which managers will cooperate with each other is based upon their discretion and is not tracked. The key tracking document for orders is the purchase order form which may be emailed, faxed, or hand delivered depending on the supplier. The purchase order form however does not aid in inventory control or forecasting. Inventory levels are reviewed at monthly meetings, but forecasting has always been a problem for the company. Historical data on which items and quantities were sold in the last 2-3 years are utilized to forecast. Turning points from increasing to decreasing sales are difficult to identify. This has caused products to become obsolete and other products being offered at a discounted price to get rid of the overstock. Data Flow Diagram of Current Processes

Purchase orders
Purchase orders
Inventory
Received
Inventory
Received
Accounting
Accounting
Purchasing
Purchasing
Suppliers
Suppliers

Data
Data
Forecasting
Forecasting
Data
Data

Data
Data
Inventory Management
Inventory Management
Advertising
Advertising

Data
Data

Merchandising/
Pricing
Merchandising/
Pricing

Kudler Fine Foods
Kudler Fine Foods
High Level Diagram of Processes

Inventory Management
Inventory Management

Merchandising /
Pricing
Merchandising /
Pricing

Purchasing
Purchasing

Advertising
Advertising
Forecasting
Forecasting
Accounting
Accounting

Statement of Scope and Goals
The frequent shopper loyalty program will build customer loyalty and increase revenue as a result of tailored marketing from discovered shopping patterns. Kudler will implement a tracking system for customer purchases that will integrate with the marketing and sales departments. Prepared, the company will be able to learn the customer’s behavior and apply that information to inventory levels and marketing tactics. This program will result in better customer satisfaction because their desired items will always be in stock. Goals for the system are to have the system implemented within the time constraint and within budget. The stakeholders such as employees and managers will communicate effectively to help achieve these goals of...
tracking img