Blozis Company Procurement

Executive Summary

My decision is to immediately perform a process analysis of our entire procurement process. To this extent I will perform an analysis of the current roles and responsibilities of each person involved in the procurement process from “Need Recognition” through to “Payment”. This will involve defining and changing the roles and responsibilities of some departments and personnel. It will also involve tightening our inventory control practices. I will also be initiating the hiring requisition form to arrange for a new parts driver to perform pick-ups and deliveries.

Key assumptions

• The problems that we are currently experiencing will continue unless clear definition of roles and responsibilities are given.

• There are currently no clear guidelines and procedures for the procurement process including a current process map.

• There will be resistance to making the changes from various personnel regarding the change of roles and responsibilities. There may also be resistance from various personnel regarding the tightening of inventory control that will be implemented as his may be construed as a lack of trust.

• Our expeditor is unable to carry out his duties of inventory control as effectively as possible due to much of his time being spent doing deliveries and pick-ups for parts.

• Unless full control of Purchase Orders are undertaken by designated personnel we will continue to have problems with the 3 way matching process on accounts payable of PO, receiving document and invoice.

Statement of Issues

The issues that we are encountering include a lack of inventory control within our facility. The instance of the 2 micrometers going “missing” would not have happened had there been correct inventory control processes in place and these processes followed.

Expeditor doing pick-ups and deliveries

Poor Accounts payable record include discounts missed

Expeditor doing PO’s and in some case pick-ups without any PO.

Managers not...