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SSCM102 – Procurement & Supply Management

Session 2 – Blozis Company

Submitted By: Haris,Rocky,Woodee,Tony

Question #1 Is the supply function organized properly? Is it strategic or tactical in nature? |

There is strong evidence to support that the Blozis company is not strategic, but rather tactical in nature. For the purposes of clarity, a strategic company would be focused on long-range planning with a clear focus on the goals at hand (eg. Process oriented, data-driven, good budgetary and operational controls). A tactical company has short-term goals, exists day-to-day, fighting fires all the time (eg. Stockouts, lack of collaboration, lack of communication, poor controls).

Tactical observations at Blozis:

* Supply Manager not qualified/not trained to comprehend engineering requirements without assistance of the expeditor (who is not even part of the Supply Chain Group)

* Expeditor, who is linked to production, is interfering (for the good and bad) with the supply chain function of procurement (eg. Picking up supplies without purchase orders, typing up manual purchase orders, not confirming orders, missing paperwork for authorization of payments)

* Expeditor is frequently suggesting substitute components, which is alarming!

* Expeditor is converting oral descriptions into commercial specifications

* Expeditor has two primary responsibilities which are at odds with each other for success; half the time he is supposed to be in the building supervising the stock room and half the time outside the building picking up rush orders – how can he be effective and efficient doing both?

* President allowing anyone to issue requisitions up to $10,000; even requisitions over $10,000 appear to be lax or non-existent for process control

* Expeditor having control over disposing inventory that are turning slowly; no accountability to Finance...