Blozis Case Study

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1. Is the supply function organized properly? Is it strategic or tactical in nature? No it is not. It is tactical in nature when expeditor was picking up parts with no confirmed orders or supply department receiving invoices for items that could not be matched to corresponding purchase order. 2. Purchasing procedures at Blozis are related to specifications, the use of requisitions, purchase orders, and receipt and delivery. Should these be changed? Why or why not? If they should be changed, how? Problems: Yes they should be changed because the current processes will only generate a lot of inaccuracies in the inventory and documentations. Current inventory and purchasing process allows for inventory to go missing, late payments to suppliers as well as mismatched receiving of invoices with purchase orders. No proper tracking and accounting of inventory is possible. Early payment discounts are also missed. The lack of documentation for the items picked up is not helping the departments to stay within budget. Corners are being cut with the way the system works. Two micrometers are lost because the expeditor most likely has picked up them up at the receiving dock and has taken them directly to the engineers. Since no documentation was in place to illustrate what has happened, it has become a financial and time loss to the company. Supply department also has to face with invoice for which they have no confirming documentation to support the payment for. There are also issues with suppliers claiming long overdue payments on materials that have been received by Blozis Company. Supply department would not do payment until they have received the receiving report, which is a good process as this controlled the possibility of paying for materials that are never received. However due to the timely submission of the receiving reports, supply department

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