Blozis Company

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SUPPLY CHAIN MANAGEMENT STRATEGIC LEADERSHIP PROGRAM

Module Two

Procurement and Supply
Management

Blozis Company Case Stu
September 28, 2012
Table of Content

Executive SummaryPage
Part 1Executive Summary 2
Issue Identification
Part 3Immediate Issue 3
Part 4Systematic Issue 3
Environmental & Root Cause Analysis
Part 5Qualitative Analysis 4

Alternatives
Part 6Alternatives 5

Recommendations
Part 7Recommendations 5

Implementation
Part 8Recommendations Implementation 5

Monitor and Control
Part 9Monitor and Control 6
Part 10Conclusion 7

Part 1: Executive Summary
My Decision is to analyze the current procurement process. And besides the procurement issues it seems there are not clear job descriptions and responsibilities and consequently some roles are overlapping each other creating problems in third party departments such as Accounts Payable. Blozis Company is a manufacturer of highly technical equipment with gross sales of $16 million per year. The company produces primarily units designed to customer specification by highly trained and knowledgeable engineers that can make to purchase applications or keep up with the market and stock highly useful products for off the shelf sale. Issues such as materials and products being lost with the company; invoices not being paid on time which obviously results in loss of early payment discounts are creating internal problems that are growing and impacting in a negative way the supply chain and other support departments. There are some managers that are complaining about how and when materials are charged to their accounts, they do not know when material arrived, and that purchase orders are taking longer to be competed. As the supply manager I will investigate the scenarios that are causing the lack of communication and present a supply chain strategy that will improve the flow of supply chain processes in each department within Blozis and lead to shorter lead times for its customers. This report will be used to discuss the current and propose challenges the next coming management team meeting to be held on Friday, September 28, 2012. Federico Zertuche, MBA

Part 3: Immediate Issue
The problems facing Blozis Company’s Supply Manager are general lack of controls, processes and defined roles and responsibilities throughout the supply department. Part 4: Systematic Issues
1. Roles and Responsibilities
Nature: TacticTiming: Shot term
Roles and responsibilities are not well defined and there are some employees like the expediter that are performing tasks that do not correspond to his position. I do believe that the Supply Manager needs to be trained in technical issues in order to understand the needs of his internal customer in this case the engineering department. 2. Procurement Process

Nature: TacticTiming: Mid / Short term
The procurement process needs to be revised. The lack of communication between the purchasing department and the receiving department is causing that items get lose, invoices not paid on time, and purchase orders place not on time resulting in a slow process. 3. Standardization

Nature: StrategicTiming: Long Term
Due to the nature of the business in which Blozis produces highly technical equipment and sales complex control equipment the need of standardization will help the purchasing department to know physical characteristics of the products, improve suppliers to understand the company’s specifications, reduce inventories as products can be delayed produced. ENVIRONMENTAL AND ROOT CAUSE ANALYSIS

Part 5: Qualitative Analysis
Tactical Aspect
The above mentioned issues concluded that Blozis Company is facing some challenges in procurement process due to unclear supply process roles and responsibility of supply staff. In order to come over the challenges, Blozis will...
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