Procurement Processes

Executive Summary

Change is necessary and change is needed immediately to streamline our procurement activities. Products are lost in our supply chain and audit trials are required for follow ups. We can’t run a company without an ability to hold departments accountable for errors. Procedures will need to be in place for better communication and we expect changes to be made later this month.

Issues with environmental and root cause analysis

One of the biggest issues is that product specifications are not communicated thoroughly and directly to the suppliers .Though Blozis manufactures highly technical equipment, the supply manager does not have or keeps up with technical training. If request specifications are not drawn out accurately, the supply department could potentially purchase many high quality/expensive products that doesn’t not meet engineering specifications. Since a lot of the products purchased are highly technical and specialized, any issues with the purchases would forced Blozis to absorb the cost as resale of specialized products would be near impossible.

Performance specifications should never be used as the supply department may not recognize parts that are required. Understanding your suppliers and knowing how to deal with them increases the fill accuracy that you receive. As well, Blogiz’s expediter is often used as an intermediary to reduce administrative time since his background as a technician allows greater understanding of production needs. However, since everything is depended upon verbal communication through the expediter, mistakes may happen and cause inaccurately purchase orders to be created. If requisitions were translated by the expediter himself, accountability falls back on the expediters if issues were to occur, even if accurate translations were made.

The other issue is that purchasing procedures are not clearly drawn out, audit trails are not fully captured. Because purchasing procedures are not properly drawn...