Blozis

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Procurement and Supply Management Module 2 Assignment 2 Case Study Blozis Company John Bernard PMAC ID# 304012 September 28, 2012 Instructor: Nikki Raycraft TABLE OF CONTENTS TABLE OF CONTENTS 2 EXECUTIVE SUMMARY 3 ISSUE(S) IDENTIFICATION 3 ENVIROMENTAL AND ROOT CAUSE ANALYSIS 6 ALTERNATIVES AND OPTIONS 8 RECOMMENDATIONS 8 IMPLEMENTATION 13 MONITOR AND CONTROL 13 EXHIBITS 15 EXECUTIVE SUMMARY Blozis Company has grown from a small manufacturer into a very successful manufacturer, exceeding sixteen million dollars in business annually. The rapid growth has created some problems. Some suppliers are complaining about long overdue payments on materials received by Blozis Company. In most cases, this…show more content…
Systematic Issues: See Figure 1 below which shows the current organization chart of Blozis Company. Figure 1: Blozis Organization Chart The major role of the procurement department is to get the products in the door, with little concern for price, to satisfy the needs of production and engineering. There are no basic systems in place to control materials once they arrive. The expediter often typed up purchase orders for rush items, and in other cases, picked up the items and told the supplier they would receive an order confirmation from the Blozis Company supply department. Once returning to Blozis, and distracted by other issues he would forget to ask supply for a confirming order. This caused distress for the supply department clerks, as they would need to process invoices for which it had no corresponding orders. Purchase orders were often made up to match invoices if the material had obviously been received from the supplier, after the fact. Roles and responsibilities of the departments are not clearly defined. There are some cross functional reporting between departments. It is common for the expeditor to make decisions on substitution of materials without proper approval or any consideration to the consequences the change will have on the quality of the product or on the end user. They come to him because he is a technician with some technical training received in the Army.

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