Blozis Company
Summary
Blozis Company is facing some challenges in procurement process due to the uncertainty and misalignment in supply process and unclear roles and responsibility of supply staff. In order to come over the challenges, Blozis will need to undertake a sequence of activities to improve the procurement process of ordering and receiving goods and services. New staff will be recruited to share the work load with the expediter so he can be more focus on his roles and duties. New computer based information system will be taking into consideration for improving procumbent efficiency, but only after process improvement has achieved to the desired level.
Issue(s) Identification
Undefined roles and responsibilities
Roles and responsibilities within the organization are not clearly defined. The supply department has to rely on others from outside the department to decipher the technical specifications for complex orders. The expediter, who is not even part of the supply department, is being allowed to issue purchase orders. This problem produces issues downstream in the supply process when confusion arises and people point fingers at each other claiming it is not his or her responsibility.
Lack of control over supply chain process
• The materials are improperly received at the receiving dock.
• Operations personnel as well as production personnel are not notified when materials are received and invoices or when invoices are paid late.
• The Supply Department cutting Purchase Orders for shipments after they have been received – too late to negotiate price or other terms and conditions.
Culture and attitude
The president likes to operate “informally” so this attitude in business is seen as a normal practice to the employees, which can lead to problems in management. Also, certain suppliers issue products to Blozis without a receipt of a PO. This business practice is a result of “good faith” but results in mismanagement of product.
Environmental and Root
Blozis Company is facing some challenges in procurement process due to the uncertainty and misalignment in supply process and unclear roles and responsibility of supply staff. In order to come over the challenges, Blozis will need to undertake a sequence of activities to improve the procurement process of ordering and receiving goods and services. New staff will be recruited to share the work load with the expediter so he can be more focus on his roles and duties. New computer based information system will be taking into consideration for improving procumbent efficiency, but only after process improvement has achieved to the desired level.
Issue(s) Identification
Undefined roles and responsibilities
Roles and responsibilities within the organization are not clearly defined. The supply department has to rely on others from outside the department to decipher the technical specifications for complex orders. The expediter, who is not even part of the supply department, is being allowed to issue purchase orders. This problem produces issues downstream in the supply process when confusion arises and people point fingers at each other claiming it is not his or her responsibility.
Lack of control over supply chain process
• The materials are improperly received at the receiving dock.
• Operations personnel as well as production personnel are not notified when materials are received and invoices or when invoices are paid late.
• The Supply Department cutting Purchase Orders for shipments after they have been received – too late to negotiate price or other terms and conditions.
Culture and attitude
The president likes to operate “informally” so this attitude in business is seen as a normal practice to the employees, which can lead to problems in management. Also, certain suppliers issue products to Blozis without a receipt of a PO. This business practice is a result of “good faith” but results in mismanagement of product.
Environmental and Root