Blozis
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 was caused by Blozis Company placing orders without issuing a purchase order number, and following verbal orders with an order confirmation. Another contributing factor is related specifically to the receipt of materials, and not controlling the records, and communicating with accounting in a timely manner.
It’s my job to solve this problem. The late payments are being caused by a lack of process and controls in place, both when orders are placed, and when goods are received. In some cases, people are performing tasks of others in order to satisfy the needs of their internals customer, but neglecting their own tasks which are equally important.
I have identified two main areas for improvement, Purchasing Procedures and Receiving Control. Effective immediately, Blozis Company is implementing a Purchasing Procedure, which includes, but is not limited to the use of purchase requisitions, more control of materials incoming and how they are stored for production, as well as a new process for letting accounting know materials have arrived with weekly report of actual receipts from the previous week. The second issue is the definition of roles and responsibilities for all key roles with the company, specifically the Expeditor. This
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 was caused by Blozis Company placing orders without issuing a purchase order number, and following verbal orders with an order confirmation. Another contributing factor is related specifically to the receipt of materials, and not controlling the records, and communicating with accounting in a timely manner.
It’s my job to solve this problem. The late payments are being caused by a lack of process and controls in place, both when orders are placed, and when goods are received. In some cases, people are performing tasks of others in order to satisfy the needs of their internals customer, but neglecting their own tasks which are equally important.
I have identified two main areas for improvement, Purchasing Procedures and Receiving Control. Effective immediately, Blozis Company is implementing a Purchasing Procedure, which includes, but is not limited to the use of purchase requisitions, more control of materials incoming and how they are stored for production, as well as a new process for letting accounting know materials have arrived with weekly report of actual receipts from the previous week. The second issue is the definition of roles and responsibilities for all key roles with the company, specifically the Expeditor. This
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