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 users know when and where it is once arrived. In the short term Blozis must first define its roles of employees in the organization. The company is currently spreading out duties with crossover on some and not on others making it confusing for requisitioners having a go to person for procurement help. This problem is only compounded by the organization lack of approval process for obtaining goods and poor tracking measures for accounting and receiving needs. After defining roles and how they will function in the supply chain the Blozis company must invest in better supply chain software. The current system is not providing a means for accurate accounting and receiving measures. Environmental and Root Cause Analysis
The Blozis Company’s current supply chain system and procedures are lacking consistency. A better explanation may be that they do not even have a real formal procedure in place and suffer consequences because of this. The company is not terribly unique by the fact that the products they procure are of a high technical nature. The nature of the products of course do make the procurement process a challenge however a change in the working environment and processes Blozis follow will help to aid the problem. An expeditor in a role where he is required to insure timely deliveries of products ordered along with picking goods up and providing technical/procurement aid to engineers is not efficient. The buyer’s role is also not efficient as they are constantly picking up the pieces and putting together proper paperwork in order for the company to have paperwork to pay suppliers. This work being done after the fact creates inefficiencies for all areas. Engineering complains the buyer takes too long to get orders out and suppliers do not get paid on time as the buyer is playing catch up on all the things that slipped through the cracks because the company does not follow formal procedures. Blozis lack of accounting measures and approval process for buying is the root of the problem. Purchases are made off the cuff by different people in the organization and accounting is not able to track until month end. The lack of procedures followed creates all the havoc. The receiving is done against the materials that arrive on site but nothing but a signature is done by the receiver. With a lot of the goods arriving on site without PO’s the tracking of the goods is difficult. Alternatives or Options
Blozis has a variety of options at their disposal. One alternative could...