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De Havilland Inc

In: Business and Management

Submitted By tracylda
Words 1179
Pages 5
On reviewing the supply function in the Blozis Company it is clear that it is not organized at all. It works under a tactical strategy with many holes in its informal policies and procedures. Some of the key issues/Problems that have been identified are as follows: * There is no proper approval policy. * Lack of technical training or knowledge in the Supply Department. * Verbal not written descriptions were provided by engineering. * Supply Manager has no technical training. * General supply buyer handles technical items. * Expeditor attached to production spends over 50% of his time picking up items every day, also makes changes to specifications without approval and has too much authorization for his position. * Stock room is managed by a clerk with almost no supervision from the Expeditor to whom that position reports. * Stock room clerk could dispose of slow moving or deteriorated goods without approval. * No proper tracking of delivery receipts. * Long overdue payments are frequent and sizable discounts had been missed due to lack of receiving reports received by the Supply department. * In rush situation purchase orders are created by expeditor not the supply department. * Suppliers were delivering goods in rush situations without a signature from the supply manager. * Anyone in the company could initiate requisitions. * No formal signature policy. * No discipline actions for wrongdoing.

The causes of the issues above are due to the following: * No formal structure of roles and responsibilities. * No formal policies and procedures. * No formal specifications on file. * The Expeditor has way too many functions and not enough time to devote to picking up and delivering goods as well as creating or changing specifications and writing confirming orders. * Although the president...

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