Emily Bowers
MKTG 444: Supply Management
Statement of Problem:
The president of Blozis Company must find a way to unify communications between the supply, engineering, and production departments on setting up standard requirements for keeping better track of ordering and sending out materials to suppliers.
Background:
Overdue payments on materials that have been received by Blozis Company-no receiving report made up and supply only passes bills for payment after receipt of the receiving report. Processing invoices for which there are no corresponding orders-no “confirming orders” from the supply department being requested by the expediter.
Discussion:
Recommendations:
BLOZIS COMPANY
The Blozis Company was a manufacturer of highly technical equipment. The $16 million gross sales of the company consisted primarily of units designed to customer specifications by the engineering department and produced on a job-shop basis by the production department. The engineering department also designed highly complex control equipment of general industrial application to be sold by the Blozis Company on an off-the-shelf basis.
The supply department consisted of the supply manager, a buyer, and two clerks who handled typing and filing. Although many of the items purchased were of a highly technical nature, the supply manager had no technical training. Through the years, he had picked up a fair grasp of the engineering terminology used in the field, but had made no attempt to keep up with the specialized design problems of the company. The buyer was a woman who was known in the trade as “hard-boiled but big-hearted” and was generally considered a competent general supplies buyer. Without great ingenuity, the buyer also successfully handled technical items if detailed specifications were supplied by engineering or production.
An expediter was attached to production.