Operations Description, Kona Gold Coffees
Administration. Our president administers operations, overall management, and
strategic planning. He has one administrative assistant who is also the
receptionist/secretary.
Sales. The activities of operations start with sales. Our salesperson calls on all
retailers monthly (mainland and off-island retailers by telephone; local retailers, in
person) and handles all direct mail sales and Internet sales. All orders are
entered into the computer, which generates a record of sale to accounting and a
work order to production.
Production. Work orders are processed and fulfilled in production; see special
segments on Production and Fulfillment below.
Purchasing. We buy on average 170 pounds of roasted coffee beans per day.
Our purchasing agent calls on our suppliers to verify quality and constantly shop
for special purchase prices. All purchases are entered into the computer and
added to inventory and record of purchase is sent to accounting. For more detail,
see Supply and Distribution below.
Accounting. Our office manager, with the help of one bookkeeper, enters all
records of sales and all records of purchases and is responsible for billing,
collecting, credit, daily banking, daily cash flow, preparing monthly financial
statements, and government reporting. We use double-entry and accrual-basis
accounting.