Case Study

Blozis Company

Problem

There are three identified problems that are present in Blozis, two are immediate tactical problems and one is a long term strategic issue. The two immediate problems are details and development of specifications and standardization, and clearly defined segregation of roles and responsibilities. The first two problems is the result of the last identified problem, also a strategic one: absence of clear and concise flow of procurement procedures and inventory accountability.

The problem Blozis has with specification and standardization as it stands right now is that the production department does not have a well structured method of communicating what it wants when it comes to technical supply requirement during the specification development process. The lack of clarity often causes the supply department to spend a lot of time on submitting the order, delaying the procurement process; at the same time, the expediter is being overworked by handling all the technical orders that the supply department is having trouble understanding.

The problem Blozis is facing with regards to segregation of roles and responsibilities is that employees are often needed to do jobs that are not in their area of responsibilities. A perfect example is that the expediter from production department. His primary role within the department is to offer technical expertise when it comes to supply usage and requisition. However, outside of his scope of responsibilities, he not only periodically types up the order but also picks up the order from the suppliers as well. Both of these works do not belong to the expediter: the former is the job of the supply department, and the latter is the job of the receiving dock.

Lastly, the absence of clear and concise flow of procurement procedures and inventory accountability is a culmination of tactical problems mentioned above. From the beginning of the procurement process, the company allows anyone to initiate requisitions....