Blozis Company Case Report Essay Sample

Blozis Company is a maker of extremely proficient equipment for usage in industrial applications. Part of their concern is selling pre-fabricated points off the shelf. However. the bulk of their concern is related to constructing forte proficient equipment to the customer’s specifications.

Blozis has run into some issues with being long delinquent with payments to sellers. In about all cases it was delayed because there had been no record of having the points. This was mostly due to the expediter who went out and picked points up at nearby providers and brought them in and straight to the requestor. non halting to give any paperwork to the receiving clerk.

Blozis operates with an informal buying policy where anyone can bespeak points for purchase. This is extremely uncommon and it needs to alter. For Blozis to repair their assorted buying and supply issues they need to establish a formal buying process. In add-on. they need to command the expediter and restrict the duties that he has. because it seems that this is where many of the jobs are stemming from.

Upper direction will hold to compose a formal policy where merely certain people can publish requisitions. and those requisitions are approved prior to being forwarded to the supply section for purchase. Next they will necessitate to originate some kind of goods having presentment system. to advise the requestor that their point has arrived in the Blozis warehouse and it can be picked up by the requestor merely. This should relieve any confusion whether or non points have been received. and assist guarantee that the right individual receives the right points.

If Blozis decently implements a buying process it will let them to salvage money by paying their measures on clip and having price reductions from their providers. Additionally. it should let them to maintain better path of points bought and received in the warehouse.

Issues Identification
Blozis Company operates with an informal buying process. The current buying policy is non working for Blozis as here have been many ailments and issues stemming from all sections. The ailments and issues that have arisen are all a straight related to the fact that there is no formal buying process in topographic point at Blozis company. Some of the more specific issues that have arisen at Blozis are as follows: 1. Bills are non being paid quickly

Suppliers are kicking that bills are long delinquent. The usual cause of the delinquency in payment was that there was no record of reception of the point. and hence Supply would non O.K. the bill for payment. The past due payments on bills were doing Blozis to lose price reductions from providers. 2. Goods Receipts are non being issued

Blozis employs and expediter who goes out and picks up points at nearby locations. It seems that sometimes when he brings points back from providers that he is non halting to give paperwork to the having clerk to fix the having study. Additionally. the requestors are non being notified when their points have come into the warehouse. 3. Everyone can do a purchase requisition

There is no control on who can order points ; and requisitions are non approved prior to being sent to the Supply section. There is no control over who can do purchases other so the Supply Manager subscribing off on the points. Because the supply director has no proficient expertness when it comes to the production of the goods. he can non make up one’s mind if the points are perfectly necessary or “nice to have” .

Environmental Analysis
Blozis is a maker of extremely proficient industrial points with $ 16 million in gross annual gross revenues. The bulk of the company’s gross gross revenues were in their forte equipment section where units were designed and built on a job-shop footing to client specifications. The other side was pre-fabricated control equipment that was sold on an off-the-rack footing. Blozis operates with a reasonably informal buying process. It was the president’s thought to run this manner. and any individuals within Blozis were allowed to originate purchase requisitions. Orders up to $ 10. 000 were merely required to be approved by the Supply Manager ; any order above $ 10. 000 had to be signed off on by the company president. However. as a general regulation these points for purchase over $ 10. 000 had antecedently been approved by the president before a requisition or order was even made out as it was included in the either the capital or stuffs budget.

The supply section consisted of a Supply Manager. a purchaser and two clerks who took attention of filing and typing responsibilities. Neither the Supply Manager nor the Buyer had proficient cognition of the points manufactured by Blozis. other so any information they had picked up on the occupation. Blozis had an onsite stock list that they kept of cardinal constituents. The stock room was supervised by a clerk who issued supplies and kept up stock records. The clerk studies to an Expediter. who has assorted responsibilities within Blozis.

The Expediter had started at Blozis in the production store as one of the technicians and had picked up some proficient preparation in the ground forces. Because of this he was really familiar with the technological footings used by the production section and was sometimes cardinal in conveying verbal descriptions from the production section to the supply section in the signifier of a written requisition with all proficient specifications required. About half of the expediter’s twenty-four hours was spent either picking up points at nearby providers. truck terminuss and airdromes or dropping stuffs for off site work at assorted sub-contractors. The expediter besides reviewed the stock room clerk’s records and prepared requisitions for points in stock list when they reached the re-order point.

In some cases there are first-come-first-serve orders that the expediter would travel pick up from nearby providers before a purchase order could be issued by supply. The expediter would ever assure the provider that a purchase order was to follow. but in some cases this measure was missed and the supply section was having bills for points that they thought had ne’er been ordered. Both the Supply section and the seller in these instances were mildly irritated that the expediter did non follow proper processs. Additionally. when the expediter would convey points in. sometimes the receiving clerk did non have the correct or any paperwork from the expediter and hence points showed no record of reception when the bill came. thereby detaining payment until reception was confirmed. Another state of affairs was caused when the expediter picked points up from the having dock and delivered them to the requisitioner ; in some of these cases points were traveling losing.

Because of these assorted jobs many providers were kicking approximately long delinquent payment. And because of Blozis’ delinquency in payment they were losing several ample price reductions with assorted providers. The most common job with the delinquent bills was that there was no having study made up for the point. In all of these instances the expediter was certain the point came in. and the receiving clerk was certain that the expediter was the 1 who had brought it in and bury to give the receiving clerk the proper certification for the goods. Options and Options

Blozis has to make something about their current buying and supply state of affairs. There seems to be some gulf in the process someplace that is allowing orders. reception records. and points fall through the clefts and travel losing. One option would be for Blozis to formalise their buying policy. Alternatively. Blozis could choose to go on on with the current informal buying process that it has now. but speak with all individuals involved so that the jobs are worked on and hopefully resolved.

If Blozis were to establish a formal buying policy. the first thing they should make is restrict the individuals who were able to make full out requisitions. Besides. because of the extremely proficient nature of the points they should get down standardising footings for their points to help the supply section in treating orders in a timely mode. It is much easier for the Buyer to finish the purchase when she has the right information from the beginning. All requisitions should besides be antecedently approved by the production section director before making the Supply section. that manner the supply section can be certain that the point is a necessary purchase.

A big portion of establishing a buying policy would besides affect restricting the things the expediter can make. It seems that many of the jobs that are coming up at Blozis are a direct consequence of the expediter holding his custodies in so many topographic points in the buying process. The expediter’s occupation should be limited to oversing the stock room and preparing requisitions for the stock room merely. He can go on to make his pickups and bead offs as he does now ; he merely needs to guarantee that he is giving the right paper work to the receiving clerk. When points are received there should be some sort of presentment system that notifies the requestor that their point has come in and they and merely the requestor can pick it up. Alternatively Blozis can choose to go on with its current buying policy. and discourse the manner things are to work with their employees. They could besides make up one’s mind to restrict the expediter’s duties in this option every bit good. which should besides assist relieve the jobs that Blozis has in it’s buying process presently.

It is my recommendation that Blozis give their current buying process a complete inspection and repair. As things are now there is no control over orders. grosss and payments. The current process if you could name it that is sloppy. a company can non anticipate to maintain their clients and providers happy runing like this. Establishing a formal buying policy and standardising proficient footings will let Blozis’ supply section to procedure orders in a timely mode. Besides. it will let the receiving clerk to decently make their occupation. make full out all the receiving studies and advise the requestors that their points have come in.

With all these holes. it should relieve the job of delinquent payments to providers. If the buying section has made the order as per the buying policy. the receiving clerk has issued a receipt presentment. the requestor picked up their point. when the bill comes there should be no inquiry that it is valid and can be paid in a timely mode.

Before Blozis implements its process it will necessitate to pass some clip developing it. Top direction will hold to work with all sections to acquire their input in how they feel the process should travel. Management must make up one’s mind who can do requisitions. who can O.K. requisitions. what sort of goods receipt presentment system will they utilize. and many other determinations must be made and perfected before any policy can be implemented. I would anticipate that it will take 6 months to adequately fix a purchasing process and implement it.

Monitor and Control
One of the best indexs that the new process is working would be that bills are being processed in a timely mode. This was one of the largest issues with Blozis. as they were losing price reductions because of delinquency. Additionally. Blozis should be able to detect that goods grosss are being issued as outlined in the policy and that points are being received by the intended receiver.