Blozis Company

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Executive Summary
Currently Blozis Company is facing many internal issues due to an absence of communication and control. The supply department is exhibiting weak control over materials and the overall supply management performance. The implementation of a supply management process will give the organization control of its operations. The large number of items, the large dollar value involved, the need for an audit trail, the severe consequences of poor performance, and the potential contribution to effective organizational operations inherent in the function are five major reasons for developing a robust process. The acquisition process is closely tied to almost all other business processes included in the organization and also to the external environment, creating a need for complete information systems and cross-functional cooperation.

Issue Identification
There is a lack of communication and control across this organization. The expediter is overworked, as he is involved in more than his assigned tasks. He is consulted by engineering or production when there are ordering problems, he also writes commercial specifications for these departments, types the requisitions, issues purchase orders, picks up rush orders, and supervises the stock room. There is no segregation of duties as anyone in the company is allowed to initiate a requisition. As a result of the informal operations, the engineering and production departments have difficulties staying within budget as the managers do not know what materials are being charged to their department until the monthly accounting statements are released. There is no evidence of receiving procedures; end users are not notified when materials arrive, orders are lost, and suppliers are not paid on time.

Environmental and Root Cause Analysis
The lack of control is wreaking havoc on the company. The expediter seems to be the “main player” in the company as he is involved in many departments. He is performing

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