New computer based information system will be taking into consideration for improving procurement efficiency, but only after process improvement has achieved to the desired level. But there are some competitive advantages that Blozis has in order to make the necessary changes to improve its operations in general: 1) Blozis’ sales are 16 million mainly of units designed to customer specifications. 2) The Company produces its own products to be sold off-the-shelf. Part 6: Alternatives
An alternative to the Company is to hire a consulting firm in order to make a diagnosis of the Supply Chain as a whole with the purpose of reorganizing the supply chain activities as well as the human resources that it seems is completely out of control.
If this study is conducted will be eliminating some of the practices such as the president likes to operate “informally” which is seen as a normal practice to the employees. Also, certain suppliers issue products to Blozis without a receipt of a PO.
This business practice is a result of “good faith” but results in mismanagement of product creating loses to the company and poor customer service.
Part 7: Recommendations In order to set up the proper procedures in the Supply Chain, Blozis will need to take the first step on investing in an ERP/EDI and encourage its suppliers to do the same in order to correct the malfunction when placing and receiving orders. The main purpose is to improve the whole Supply Chain processes as well as Human Resources and Account Payable.
New computer system – System unable to support new changes, then try to modify the original design.
3. Unable to implement new procedures – continue the talks with key department teams and management teams in order to reach new agreements. 4. Unable to test the system – continue working with the different areas in order to gather all the information and resources necessary. Part 10: Conclusion and Management Plan In conclusion, Blozis is facing a challenging situation due to lack of procedures leading to a complete disorganization among departments.
The situation is not different from other organizations but others have been able to find the solution by establishing clear procedures and investing in new technologies. Blozis makes $16 million on sales, amount large enough to develop a 5-Yr plan to incorporate new software to its systems. The results should be a more efficient Supply Chain that it will allow the Company to achieve its targets, improve internal and external customer service, and generate savings throughout the organization.