...Blozis Case Study Executive Summary The Blozis Company currently face challenges in their supply chain due to a variety of reasons. The company which manufactures products that are complex, technological and engineering driven have poor procurement procedures that are creating issues for various departments in there organization. Blozis needs to make changes to a variety of steps in the supply chain in order to maximizes there employees skill sets and insure product is ordered to specification, timely, accounted for properly, received and expedited in order to maximize the companies efficiencies and create less problems in the supply chain. I recommend that Blozis should change make changes to some of the procurement staff duties to better utilize their skill sets and create an easier purchasing process for the operations department. The company must also invest in up to date software to gain the ability of tracking expenses to particular areas as well as knowing when and where goods have been received in the organization. Issue Identification Blozis structure of the organization is currently not coinciding with proper procurement procedures as people in the organization do not follow consistent practices. Ordering and requisitions are done with little or no approval process and the monies being allocated to each order are not accounted for until month end. These problems in the supply chain are also coupled with a lack of receiving and storing of goods properly so end...
Words: 1185 - Pages: 5
...Blozis Case Report Executive Summary My decision as the Supply manager of Blozis company, a as medium sized family owned, manufacturer of highly technical equipment is to find a lasting solution to the recurrent problems in the Company supplies department. Being a small scale family business, the President liked to operate “informally”, this makes it difficult for the supplies department to properly carry out its role. There is haphazard purchasing procedure which is not being followed. There is poor record keeping by which has led to loose or equipment that was ordered and was never got to the internal customer, customers not being paid as at when due. The engineering and Production are not able to properly describe what they need. And worst of all the Expediter is sometimes playing the role of the buyer and his own office is neglected, to the point of not being able to keep proper records. As the Supply Manager I need to device a smooth working procurement process such that both internal and external customers are satisfied and production gets what they need, when they need it. I need to make the department functional and more productive such that there is less rush samples and time and money spent on order processing is greatly reduced. At this point it will be necessary for me to convince the president of the need to adopt an Electronic Date Interchange system, such that the whole process will run in a continuous unbroken chain as against the situation now. ...
Words: 2699 - Pages: 11
...GANIYAT DADA PMAC # 2002005 MODULE 2 PROCUREMENT AND SUPPLY MANAGEMENT SESSION 2 BLOZIS COMPANY CASE REPORT JANUARY 27, 2011 Part 1: Executive Summary As the Supply Manager of Blozis Company my recommendation will be to initiate and implement the ten steps that involves the activities that results in the acquisition of required good or service. The very first thing to do is to build consensus within the organization around the opportunities to add value to the organization. Supply process is basically a communication process, this is clearly lacking in this organization. The departmental managers did not know the materials been charged to their cost centers until monthly accounting statements were released. There is no proper documentation of orders placed and received. As a result items were misplaced and suppliers were not paid as per the payment terms. As the Supply Manager of Blozis I need to put the correct process in place to will follow best practice of the procurement process. I will need to determine what needs to be communicated, to whom, and in what format and time frame; all this will help will translate to an efficient and effective supply management process. Table of Content Executive Summary Page Part 1 Executive Summary Part 2 Table of Content Part 3 Introduction /...
Words: 2504 - Pages: 11
...Executive Summary My decision as the Supply manager of Blozis company, a as medium sized family owned, manufacturer of highly technical equipment is to find a lasting solution to the recurrent problems in the Company supplies department. Being a small scale family business, the President liked to operate “informally”, this makes it difficult for the supplies department to properly carry out its role. There is haphazard purchasing procedure which is not being followed. There is poor record keeping by which has lead to lose or equipment that was ordered and was never got to the internal customer, customers not being paid as at when due. The engineering and Production are not able to properly describe what they need. And worst of all the Expediter is sometimes playing the role of the buyer and his own office is neglected, to the point of not being able to keep proper records. As the Supply Manager I need to device a smooth working procurement process such that both internal and external customers are satisfied and production gets what they need, when they need it. I need to make the department functional and more productive such that there is less rush samples and time and money spent on order processing is greatly reduced. At this point it will be necessary for me to convince the president of the need to adopt an Electronic Date Interchange system, such that the whole process will run in a continuous unbroken chain as against the situation now. Key Assumptions •...
Words: 2636 - Pages: 11
...BLOZIS COMPANY Executive Summary: Blozis Company a manufacturer of highly technical equipment made $16 million gross sales by the engineering department. The supply department consisted of the supply manager, a buyer and two clerks. Multiple problems led up to the main problem in this case, one of those is the fact the engineering and production departments would contact the expediter in ordering instead of going through the requisitioner. This in turn caused faulty paperwork on items leaving the stockroom and the books would start to get out of order. Another problem was that there isn’t enough communication between departments and this has led to drop in efficiency. Everyone claims they did their job correctly but there isn’t a paper trail to prove it. Assumptions: The supply manager had no technical training on the job which is highly technical in nature, it was assumed that he had a fair grasp of the engineering terminology used in the field and so she could handle the department. She definitely was dealing with as little as she understood and so the expeditor took over the procurement process bypassing the important part of the process. The expediter who was formerly one of the technicians in the production shop and had some technical training in the army but had no background in strategic procurement processes was often contacted on ordering problems, he was not following...
Words: 1279 - Pages: 6
...Part 1: Executive Summary Blozis Company is facing several procurement process issues due to an absence of communication, control and leadership from the top down. The organizational culture and attitude toward the business process has led to dysfunction and increased costs. The supply department is exhibiting weak control over materials handling and the overall supply management performance. The implementation of a supply management process will give the organization back the control over its operations and business culture. The potential contribution to effective organizational operations is essential in the function of an inventory cataloged system for recurring material purchase items, structure and discipline across the organization and position focus and restructuring. By recommending and successfully implementing purchasing procedures and material receiving control Blozis will be able to better utilize strengths already within the organization and hone on new found strengths through proper management structure and advanced technical specification training. Part 2: Issue Identification The primary issue faced by Blozis Company is an absence of communication and control throughout its procurement process. Uncertainty and misalignment is evident across their decentralized and informal supply chain. Anyone in the company can initiate requisitions and material can be purchased with minimal to no approval. The informal presence and lack of leadership from the...
Words: 1734 - Pages: 7
...Executive Summary Currently Blozis Company is facing many internal issues due to an absence of communication and control. The supply department is exhibiting weak control over materials and the overall supply management performance. The implementation of a supply management process will give the organization control of its operations. The large number of items, the large dollar value involved, the need for an audit trail, the severe consequences of poor performance, and the potential contribution to effective organizational operations inherent in the function are five major reasons for developing a robust process. The acquisition process is closely tied to almost all other business processes included in the organization and also to the external environment, creating a need for complete information systems and cross-functional cooperation. Issue Identification There is a lack of communication and control across this organization. The expediter is overworked, as he is involved in more than his assigned tasks. He is consulted by engineering or production when there are ordering problems, he also writes commercial specifications for these departments, types the requisitions, issues purchase orders, picks up rush orders, and supervises the stock room. There is no segregation of duties as anyone in the company is allowed to initiate a requisition. As a result of the informal operations, the engineering and production departments have difficulties staying within budget as the...
Words: 1693 - Pages: 7
...On reviewing the supply function in the Blozis Company it is clear that it is not organized at all. It works under a tactical strategy with many holes in its informal policies and procedures. Some of the key issues/Problems that have been identified are as follows: * There is no proper approval policy. * Lack of technical training or knowledge in the Supply Department. * Verbal not written descriptions were provided by engineering. * Supply Manager has no technical training. * General supply buyer handles technical items. * Expeditor attached to production spends over 50% of his time picking up items every day, also makes changes to specifications without approval and has too much authorization for his position. * Stock room is managed by a clerk with almost no supervision from the Expeditor to whom that position reports. * Stock room clerk could dispose of slow moving or deteriorated goods without approval. * No proper tracking of delivery receipts. * Long overdue payments are frequent and sizable discounts had been missed due to lack of receiving reports received by the Supply department. * In rush situation purchase orders are created by expeditor not the supply department. * Suppliers were delivering goods in rush situations without a signature from the supply manager. * Anyone in the company could initiate requisitions. * No formal signature policy. * No discipline actions for wrongdoing. The causes of the issues...
Words: 1179 - Pages: 5
