Kudler Fine Foods
Essay Preview: Kudler Fine Foods
Report this essay
Service Request SR-kf-013 Paper
Team A
BSA/375
July 22, 2013
Alan Basa
Kudler Fine Foods
Frequent Shopper Program
Kudler Fine Foods provides specialty customary foods, founded by Kathy Kudler in 1998. By 2003, she expanded, adding two more locations in San Diego area. The three stores are located in La Jolla (Corporate office), Del Mar, and Encinitas. Each store is 8,000 sq. ft. within a shopping center. Kathy Kudlers mission is to provide high quality customer service from a knowledgeable staff, increase customer visits, and improve consumer purchase cycle.
Kudler Fine Foods would like to start a rewards program. The program will track purchase behavior at the individual customer level and providing high-level incentives through a partnership with a loyalty points program. This will accommodate Kudlers mission by refining its processes and offerings to best satisfy their valued customers.
Current System and Process
Currently, Kudler Fine Foods tracks 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. The firm is in the process of developing a new system that will track customer behavior overtime, creating a more intimate relationship.
The department managers are to check with their counterparts at the other stores on the pricing, quality, and delivery of the merchandise they order. They are to combine orders between their stores if they think there would be a cost savings by ordering a larger quantity of items or multiple items.
Kathy places purchase orders. Kathys purchases relate mostly to unique, capital, or repair items required by an individual store or for items used by all three stores, such as bulk purchase orders or receiving forms.
Purchase order forms sent by mail, handed to supplier sales representatives, faxed to suppliers, or sent by E-mail if acceptable to suppliers. Whatever the method used, a purchase order form initially becomes the key tracking and financial document for an order.
Logical Data Flow Diagram:
Scope and Goals
The executive management committee at Kudler Fine Foods has requested our team to create a Frequent Shopper Program. The Frequent Shopper Program objective is to increase revenue, reduce costs, and increase loyalty. The program design and purpose is to create loyalty points with incentives, track customer behavior, and develop a similar process. The deadline for this project is July 22, 2013.
Functions specific to the project are frequent shopper program, cost estimates, and inventory management. Goals and accomplishments of this are to maximize profits, offer quality products, and satisfy clientele.
Supporting measures for success (need to add more details)
Tangible measures that determine the relative degree of success of the completed projects are the amount of loyalty cards used each month, the number of rewards awarded, and the inventory report and balance sheet totals.
Key Stakeholders
The stakeholders of the Kudler Fine Foods rewards program are as follows. Kathy Kudler as the president would attend the JAD session. Under Kathy are administrative assistant Arthur Stepka and the three store managers Kent Vesper, Laurie Priest, and Juanita Lopez. From the Accounting department Harvey Stephens who is the Director of Financing and Accounting, Meredith Nguyen Computer Support Specialist, and Juanita McNamara Accounting Clerk. Yvonne Reynolds, Director of Store Operations, along with Arlyn Rilley Inventory Manager, and Daniel Pitcher Purchasing Manager. Harvey Stephens along with Meredith Nguyen is required to provide system information on the current system plus the possible requirements the new system requires. Harvey Stephens along with Juanita McNamara will provide reports on the current accounting system and new requirements the new system needs to apply reward points based on amounts bought by each customer. Yvonne Reynolds, Arlyn Rilley, and Daniel Pitcher will provide inventory information, instructions on data entry, and tracking of inventory. The three store managers, Kent Vesper, Laurie Priest, and Juanita Lopez, will provide information on how the store employees currently handle input of information from customers and ideas on how to improve this process as applies to the reward program.
Project Feasibility
The new system will not require a large amount of training. The POS will have instructions throughout each prompt during the training sessions with the option for more information after the training period is complete. The POS touchscreen will walk the customers through the process of the loyalty program with an explanation of using the phone number on future visits. Technical issues will be resolved before live date for inventory reports and balance sheets. Running a cost analysis will resolve the economic feasibility and can be analyzed either the traditional way or via new technology. If any issues arise, there will be a customer service representative on-site for first two days of operation. Technical issues may arise but we put in place a team to walk the managers through how to fix them. More detail given later. Before system is in place, a cost analysis and benefits are determined in the scope.
Preliminary design model
Design Requirements
Design trade-off is a part of every project. Some factors change the way a program is designed. Some of these are the total cost, the length of time it takes to create the program, and the performance. Depending on the budget and time constraint, Kudler Fine Foods may go outside the feasibility. A roundabout figure based on the Information Technology – FY04 Capital Budget, the figure is roughly $145,000. This includes design and development of B to C, the web site, replacement of finance and accounting system, CRM system, and the point of sale (POS). The POS system has been budgeted at $32,400 and the finance and accounting system has been budgeted at $22,500.
As stated, the program must do the following and are either mandatory or optional. The mandatory items are track customer name, track customer address, track purchases, track price items are purchased at, track reward