Blozis Company Essay Example

expediter plays a central role in the company, being involved in multiple departments and performing various tasks. He is often contacted by the engineering and production departments for ordering issues even before they submit a requisition to the supply department. In cases where possible, he proposes alternative components from the stock room or creates a commercial specification, types the requisition, and forwards it to the supply department.

The expediter issues rush purchase orders and also collects items without a purchase order, assuring suppliers that they will receive a "confirming order" from the supply department. However, there are instances where the expediter fails to notify the supply department about these transactions. As a result, purchase orders are created to match invoices for materials that have already been received from the supplier. Furthermore, the supply department lacks understanding of technical information, and the supply manager has not made any effort to stay updated on the specialized design problems in the company. On the other hand, the buyer is capable of handling technical items with detailed specifications from the engineering or production teams.

The procedure for receiving orders is not indicated. End users are not notified of material arrivals unless the expediter delivers it to them. Orders are lost after receipt, leading to delayed payments to suppliers and missed discounts due to incomplete receiving reports. Both engineering and production managers struggle to manage materials budget effectively. They are unaware of which materials are charged to their departments until monthly accounting statements are released. For orders under $10,000, only the approval signature of the supply manager is required. Orders over $10,000 need the president's approval, but in reality, all orders above

this amount were already approved by the president in either the materials budget or the capital budget before requisitions were prepared.

There is a need for improvement in the company to ensure efficient operation. Consider initiating a supply management process as one option. This process involves implementing standard operating procedures to handle daily tasks. The first step in optimizing the supply process is to build consensus within the organization regarding ways to enhance organizational value.

Personnel at all levels in the company must collaborate to understand and align strategies and goals, both vertically and horizontally. This collaboration will help maximize opportunities for the organization. The supply process is essentially a communication process, where it is crucial to determine what needs to be communicated, to whom, and in what format and timeframe for efficient and effective supply management.

The purchasing process consists of several essential steps. First is needs recognition, which involves identifying the need for a good or service and determining when it is needed. Next is the need description or specification, which provides sufficient detail to ensure correct procurement of the good or service. Sourcing includes investigating and qualifying potential suppliers while evaluating their bids. Supplier selection then follows, which involves choosing the supplier for the desired product or service. Ordering entails making the actual purchase from the selected supplier.

Monitoring is an important step that involves following up with the supplier to check on order status. This could include expediting an unexpected early requirement or addressing a missed delivery commitment by the supplier.

In summary, this text describes various steps involved in supply management process and highlights benefits of implementing this process.- Receipt and inspection: This step includes

receiving goods or services while verifying compliance with specified requirementsThe supply management process involves several steps, including payment, documentation, and relationship management. Payment entails clearing the invoice and issuing payment for goods or services. Documentation encompasses completing paperwork such as bills of lading, invoices, payment requisitions, and payment registers. Relationship management focuses on managing both internal and supplier relationships.

Pros of this process include a disciplined and consistent approach throughout the organization, accurate item descriptions on requisitions, reduced rush orders, proper record-keeping of received goods, timely payments to suppliers with potential discounts, and fostering good relationships with departments and suppliers.

However, there are also cons to consider. Implementing this process may require additional administrative work which could mean hiring more staff for efficient execution.

Investing in an ERP system is another option that can facilitate the flow of information between all business functions within the organization and connect with external stakeholders like customer and supplier systems. This system will effectively integrate all business management functions, such as planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, and human resources. By integrating all departments and functions onto a single computer system, ERP software enables easier information sharing and communication between various departments. Some benefits of implementing an ERP system include reducing data entry and processes, enhancing information sharing across departments, improving access to information, optimizing workflow and efficiency, and enabling accurate cost tracking and activity-based costing.

The drawbacks of the ERP system include the costs associated with implementation, the time and financial resources required for proper training, the annual licensing fees, and the complexity in customizing the system. To ensure clear comprehension of their responsibilities and performance expectations,

it is crucial to establish detailed job descriptions for each position. Evaluating current employees and their roles may be necessary to optimize their contributions to the organization. Furthermore, it is important to reevaluate the requisition process as it currently permits any employee within the company to initiate a requisition without obtaining approval from the budget holder.

The department managers are struggling to adhere to their budget due to a lack of awareness of all issued orders. I recommend implementing the supply management process, along with standard operating procedures to control operations. Additionally, I suggest developing detailed job descriptions for each position and conducting performance reviews to maximize employee contributions. For instance, the expediter may be better suited to creating commercial specifications and requisitions rather than handling order pickups and inventory management. An overhaul of the current requisition process is necessary.

Authorization to initiate a requisition will be given only to specific individuals in each department. After that, the requisitions will be sent to the respective department manager for approval. Requisitions exceeding $10,000 will then be forwarded to the president for approval.

Once approvals are obtained, the requisitions will be forwarded to the supply department. The supply department will handle placing orders and issuing purchase orders to suppliers.

This process aims to assist departments in monitoring their costs and maintaining budget compliance. It is anticipated that the implementation of this process will take approximately 20 weeks.

The strategic impacts evaluation and approval of proposed timing will be carried out by a cross-functional team led by me, the Supply Manager. This team will consist of representatives from various departments including supply, engineering, production, warehouse/receiving, finance, and HR. The following plan of action

will be implemented: regularly scheduled meetings of the cross-functional team to monitor and control the progress of the plan and ensure everything is on track.

Implementation meetings with all departments must also be scheduled. It is crucial to understand and accept the standard operating procedures for the successful launch of the supply management process. Key performance indicators (KPIs) will be established to monitor budget versus actual expenses, payment terms and discounts, the time it takes to process purchase orders, and overall performance.

Conclusion Blozis can expect a more efficient and effective future by implementing these recommendations. It is crucial to have control and communication within an organization. Every employee contributes to the successful operation, making it easier to work harmoniously rather than in chaos. The success of implementation depends on understanding and accepting the process. Once the process is understood, opportunities for technology applications to streamline the process without sacrificing effectiveness can be identified. Remember, prioritize the process first and technology last.