Kudler Fine Foods: Internal Control and Risk Evaluation

Latrice L. Alston

ACC 542

Eva King

March 3, 2013

Kudler Fine Foods: Internal Control and Risk Evaluation

Kathy Kudler founded Kudler Fine Foods in 1998 with a vision to offer customers gourmet products at reasonable prices. As the business has grown, the need to evaluate internal processes and procedures has become increasingly more important. Kudler Fine Foods with three locations in California is faced with increasing productivity while controlling costs internally. In short, Kudler Foods has to manage costs and use technology to aid in the process of streamlining operations in all locations. The purpose of this analysis is to provide a clear and concise analysis of the method Kudler Fine Foods is currently using and offer recommendations to improve efficiency by capturing important data rather than extemporaneous data. Specifically, the current system used by Kudler Fine Foods does little to provide a true picture of inventory sources and the effect of the data on Kudler Fine Foods bottom line. The current data table found on Kudler Fine Foods Finance & Accounting tab simply lists GL codes, products, and cost. While this information provides basic information regarding inventory and costs, the data table does not break out for users of the data comparable data to make decisions regarding inventory. One benefit of the data table currently used is that it provides departmental data that can be used and analyzed by department managers.

Recommendations Data tables, specifically a pivot table can provide essential data that can be used not only departmentally, but also across the organization. The data extracted can be then analyzed and compared location to location providing management insight on cost expenditures and vendor inventory.

Many of Kudler’s vendors provide substantial inventory that could be better managed by understanding the volume of inventory needed and reducing costs in wasted inventory either by over- supplying or under- supplying locations. Data presented in a pivot table is made clearer by visualization since numbers alone while necessary, often present only a partial picture of important facts. Since the organization is growing and seeking to streamline overall operations, the implementation of using pivot tables versus the current method maintained by the accounting and finance area should reduce the redundancy found in the current data table. A simplified data analysis for Kudler Fine Foods is a better option than the current method of reporting and analyzing data. Specifically, a pivot table which uses the data found on the intranet as source documentation can produce specific data to be analyzed rather than a listing of products and cost. For example, by categorizing data by departments, vendors, and costs, Kudler’s management and accounting staff can will be able to quickly identify trends in sales and costs

Conclusion

Kathy Kudler’s organization is growing and expanding which necessitates a more efficient method of gathering and analyzing data. Many of the processes that worked when the organization was smaller are no longer suitable to produce the type of data needed to make smart business decisions. The niche market Kudler Fine Foods caters to must be remain relevant not only in the goods provided to customers, but also in the way the organization measures up to its competitors. In order to provide quality and quantity the service customer expect, internal systems of maintaining and managing inventory must improve. By employing the use of pivot tables Kudler’s management team is better prepared to offer real solutions to problems caused by varying inventory levels in addition to managing relationships with suppliers.

References

University of Phoenix. (2005). Virtual Organizations, Kudler Fine Foods. Retrieved from

University of Phoenix ‘rEsource', December 21, 2009.