Blozis Company

Assignment
Vipin Sekar Chandrasekar
IMIM - 12

Major Facts
The supply chain and procurement departments are not organized and are working
inefficiently.

Top management is aloof.

Lack of technical training to employees i.e supply manager

There seems to be no company strategy in place to drive the employees.

No paper work is being done so as to follow up with the material receiving

Employees roles is not defined properly.

Major Facts

The supply chain and procurement departments are not organized and are working
inefficiently.
Top management is aloof.
Lack of technical training to employees i.e supply manager
There seems to be no company strategy in place to drive the employees.
No paper work is being done so as to follow up with the material receiving
Employees roles is not defined properly. For example, one of the two clerks in the supply
department reports to the expediter who is a part of the production department.
The expediter, who is the only person in the company to understand the technical
specification is over worked and hence he doesnt really find time to do the paper work for
the parts delivered. This behavior is also accepted in the company and hence there is no
validation of the parts coming in.
The President has given complete autonomy of the purchase as he approves all orders
above $10000 in the budget meeting itself. Hence there is no one to question the order
being placed and subsequently received.

Major Problem

Blozis Company

Major Problem

Lack of planning, control &

top management
involvement.

Possible Solutions
For the short term, we have to
* Involve the top management to drive the
company in accordance with the company
strategy.
* Provide intensive technical training to the
employees.
* Define the roles and responsibilities for each
department and employees respectively.
* Hire competent people to the respective
departments in order to effective working of
the departments.
* The expediter, as the name suggests should
only be involved in picking up rush orders and
supervise the stock room and nothing more.
* All the approval should be made
electronically in need basis and without the
approval the purchase order cannot be placed.
This validates the material requirement.
Similarly, all the parts coming into the
company should be validated in order to have
accountability of its ownership.

For the long term,

Implement an ERP system which includes all
the departments and the suppliers. This
ensures that all the activities in the company is
accounted for and hence the chance of a part
being misplaced is reduced drastically.

In retrospect, the supply manager can switch roles

with the expediter. This could be a possible solution
as the expediter has all the technical knowledge
required for the job which the current supply
manager lacks. The current supply manager can do
the work of the expediter by ensuring the parts are
being delivered to the different departments at the
right time.

Choice & Rationale

The choice of decision was simple and straight
forward from an organization point of view. The
very basic need was the training that is to be
provided for the employees. Though like a typical
large organization, the employees were there for
a long time and they know their job as a routine,
they lacked the technical skill. They failed to
adapt to the improvements to the industry and
hence that should be rectified by the training.

The top management also had to indicate the

roles and responsibilities for each department
and employees respectively in order to ensure
there is no redundancy in work and all the work is
accountable by the individual employees. This
will help to minimize the expediters work and
also avoid the parts being misplaced.

The firm should hire competent people in order

to help keep up the companys strategy. This also
will help to differentiate the work between the
supply and the production department, which in
turn will also ease the expediters work.

By changing all the approvals to electronic

format, we can make sure that the suppliers will
issue supply only at the issue of purchase order
which in turn should be approved by the
respective personnel depending on the value of
the order. By making the suppliers demanding
for the PO will ensure the accountability of the
order and also will be easier in financial
budgeting of he company

Implementation

Week 1

Meeting with all the

CxOs and
department heads
to discuss openly
the root cause of
the problems
happening in the
company

Week 2

Week 3

Week 4

Begin intensive
technical training to
the employees (Can
be done once in six
months for
employees of
executive cadre)

* Begin hiring for

technical roles in
the company
* Implement
electronic approval
system

Try interchanging
the roles of the
current supply
manager and
expediter in trial
basis and see the
results

Week 5

Get feedbacks from

the different
departments and
see where to
optimize the
process

Thank You