The use of information technology enables Kudler Fine Foods to solve all of its internal problems as well as improve their customer relations and provide them with the scope to expand their services in the future. The core function of Kudler Fine Foods is to sell food stuff. Traditionally the process of selling has been equated with good communication skills, advertising and offering good variety of foods. Today, there is a need for an enhanced set of skills that includes the old skills, but also reflects current skills related to the effective use of information technology. To be most effective, the acquisition of these new skills will be achieved through a branch-integrated IT approach to support purchase, stock maintenance, employee management and customer management.
Marketing
Kudler Fine Foods is currently poised for expanding its services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers. In all of these three aspects, the use of information technology is very important. Kudler has a new marketing program targeted at select consumers to show them how to prepare specialty foods. The draw of the consumers will be based on time spent in the store and frequency of visits to the store and number of guests they bring to the store. The selection of the consumers is made through the computer.
Kudler also uses technology to track purchase behavior at the individual customer level and give them high value incentives through a partnership with a loyalty points program. From a service perspective, Kudler is benchmarking Nordstrom department stores. This means, it compares its own standards with those of Nordstrom department stores using special software systems. Moreover, information technology has provided the answer to the problem faced by the purchasing department to find ways to reduce costs of ordering foods and minimize the amount of food to be stored, while also having a zero stock out policy. Purchasing has developed a supplier relations program and has solicited the help of marketing to help roll out the program.
Financial Applications
Kudler Fine Foods has used IT to track information such as dollar value and profit margin per transaction, dollar sales and profit levels by day, and dollar sales and profit margins by item. Recently, in order to leverage the information to create a more intimate relationship with their customers, the firm is integrating a system to track customer purchase behavior over time. This program is in the process of being developed. Marketing Budget
The marketing budget is primarily comprised of new initiatives, marketing communications, and marketing research. IT is used in all these three aspects through computerization. Within the next 12 months, Kudler plans to acquire new customers through social network marketing which is a modern application of IT.
Kudler HR system
Kudler uses Quick Books and has outsourced payroll processing to Intuit. Intuit’s database tracks the following information for each employee: personal data, pay rate, tax exemptions, hire date, seniority date, and organizational information. Changes are entered into the system by an accounting clerk. However, it is necessary for employees to fill out time sheets manually each week, which are approved by the store manager. This is a limitation that can be overcome if there is a program that enter their entry and departure timings and that can be validated by the store manager or direct supervisor through printouts. Employee files can be entered into a database and an automated system for tracking vacation can be put in place through smart use of information technology.
The HR manager keeps an Excel spreadsheet with the results of job analyses, salary surveys, and individual compensation decisions. The HR assistant keeps information about complaints, grievances, harassment complaints, etc. in locked files in the HR office at headquarters. It would be better to have a information system in place for entering complaints, grievances etc. along with their status.
Overview of Finance & Accounting Systems
Kudler’s purchased a modular and scaleable RMS and installed in the first and subsequent Kudlers retail stores and Smith Consulting was contracted on a yearly basis to maintain the REMS.
Finance & Accounting Financial Modules
The General Ledger Module keeps track of the accounts, store-wise, department-wise and product-wise transactions, financial reports, budgets and budget reports. There is also provision for maintaining non-financial accounts such as department sales and inventory, department and store headcount. Accounts Payable Module keeps track of Vendor codes and master files, check printing, tax and freight allocations, multiple bank accounts, purchase details, international addresses, and also allows manual entry of cash transactions. Accounts Receivable Module tracks all sales data and generates daily sales report based on POS system. The Bank Reconciliation Module looks after banking transactions.
Security
The REMS has imbedded security features such as passwords, dollar limits, limited access, etc. but there are no formal company policies or audits regarding same.
An analysis of the deployment of IT in Kudler’s Fine Foods shows that it is well supported by IT in most of its functions, especially in the realm of marketing and Finance. However, much more can be done at the level of HR and production.