In the case of Thomas Foods, the local suppliers and vendors would be the original source that determines the selling price of the produce or the baseline price of the goods. The most valuable result for Thomas Foods would be to implement a purchase order system rather than implementing a hedging strategy. When implementing a hedging strategy for the company, the controller would need to have extensive training to account for the strategy itself and the accounting that needs to go behind it. With the implementation of a purchase ordering system, the controller would need very minimal training
My recommendation of implementing a purchase order system for the company, the company’s controller would need to have significant training to implement the hedging strategy. The reason for why the training of the controller would be less as it wouldn’t affect the budgeting process employed by Thomas Foods and it would help Thomas Foods simplify their current system. Thomas Foods would be able to set their pricing to local grocery stores because the company locked in their suppliers at specified rates and