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
These multiple and diverse roles are
most certainly overwhelming for an individual to perform A second problem is the
system of “confirming orders” after pick up. Obviously, this is bad business practice
which exposes supplier to business risks as there is no legal documentation of the
transaction. As well it recreates aftermath invoicing, accounting and reconciliation
problems . It is a reactive business strategy rather than a proactive one.
The supply function is not properly organized, there is inefficiency
and miscommunication within the company. Blozis company hasn’t strictly enforced
company’s policy. The president is running the company in a very informal way and
when the incidents occurred, no disciplinary action was put in place. The supply
department was always too slow in processing orders, they did not understand technical
specifications and the expediter is being overworked. The managers did not know what
materials were being charged to their departments until they see the monthly accounting
statement. There was lack of communication as the engineering and personnel
department do not know when materials come in. It is apparent that lack of control has
caused minor problems to snowball into bigger ones. The supply department was not
educated enough and so did not keep up with changing technologies to retain top
A stricter policy must be put in place or enforced within the company so that any
problems that arise will be dealt with sooner than later.
The expediter seems to be doing too much in the company, he needs to focus
more on fewer tasks.
The supply department needs to be educated more on the products they are
There must be a better communication within the various departments of Blozis
Reset employees’ responsibilities and job titles.
In this case, a good decision will result in evenly distributing the workload and job
responsibilities to the right individuals which will lead to the correct materials being
ordered and not missing; purchase being issued at the right time to avoid“confirming’
situation, supplier invoices being paid on time and materials budget not being
The supply function is not properly organized. It is neither strategic nor tactical in nature.
When company allows one personnel perform five to six roles at once, there is
fundamental problem. There should be clear roles and responsibilities and the right
resources assigned to same. In addition, there needs to be proper forecast and planning
from the engineering side to ensure more proactive and strategic procurement. For
instance if the engineering and production team got their forecast and planning right,
there would not be the need for “rush orders” and/or “confirming orders” after pick up.