Blozis Essay

1279 words - 6 pages

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 ...view middle of the document...

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

efficiencies.

Criteria:

 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

dealing with.

 There must be a better communication within the various departments of Blozis

company.

 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

exceeded.

Analysis:

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.
...

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