Kudler Fine Foods Internet Purchasing Proposal
Kudler Fine Foods is looking at the prospect implementing internet based product and supply purchasing into the point of sale system that is already in place at all three Kudler locations. The addition of internet based purchasing for supplies and product inventory is aimed to help reduce overhead on purchasing costs for the company, while also diversifying the availability of products presented to customers. Currently, Kudler Fine Foods uses local and regional vendors for almost all of their products available in their stores. These vendors supply Kudler Fine Foods with the necessary supply of food, grocery, and cooking items to keep the Kudler inventories and stock levels at acceptable levels of product. Using local and regional based vendors has proven to be effective, however there is little room for price negotiation on products as the vendor is the sole supplier of these set products. “When the product being purchased is fairly standard and readily available, most firms choose to utilize the competitive bidding process of supplier selection. This involves little or no negotiation”. (Reference for Business, 2012) In order to receive products from a vendor, Kudler Fine Foods must find vendors that offer products that they would consider selling in their grocery stores. Once vendors are found, these vendors will put in a bid to offer their products and services to Kudler. However, this is where it is a little bit tricky. As stated above, Kudler uses mainly local and regional vendors for their products. When a vendor is a sole proprietor of a product, the bid for service for from this vendor has very little room for negotiation. This approach benefits the vendors more than the purchaser, and price gouging may ensue. Also, if Kudler Fine Foods is limited solely to local and regional vendors, product availability may suffer. If a vendor that has a contract with Kudler Fine...
Please join StudyMode to read the full document