Blozis Case Essay

Executive Summary The objective of this report is to identify the nature of the issue. The questions we will ask are strategic in nature. The operation has problems in the general operation of the organization and by focusing in the key issue we will recommend a solution to prevent further problems and possible catastrophic damage to the functionality of the organization.

The numerous issues in terms of supplier not paid will be issued and a recommendation will be provided.Issue Identification The organization must join together to standardize processes. Currently the company has numerous outstanding payment issues. The root of the problem is the lack of consistency. Having every group do thing differently, the company cannot communicate efficiently internally which creates even more problems externally. More specifically the receiving of material is not tracked properly, which has for effect to hold payments of material which where received but not recorded.The lack of confirmation of PO also creates issues where items are expected but never delivered.

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Recommendation To resolve this issue we would need to have a standardized process and utilize a senior buyer to have ownership of purchased goods. Step 1: The requisitioner makes an official requisition and hands it over to the buyer. If the req is over $10,000 the requisitioner must get approval form the president. Step 2: The buyer seeks out quotes to ensure best price and that the vendor is able to acknowledge the material in question.Exception: If the product is a high priority/time sensitive item the requisitioner may get the quote for the buyer. Step 3: The buyer sends his PO to the vendor and requests an acknowledgment within 24h.

Step 4: The material a received on the delivery date and the warehouse creates a GR. The vendor now sends his invoice to AP where they will crosscheck the GR. Any issues in this process will be tolerance zero and the vendor will have to go directly to the buyer for assistance.