Essay on Blozis Company Case Report

1911 Words Feb 7th, 2013 8 Pages
Executive Summary Blozis Company is a manufacturer of highly technical equipment for use in industrial applications. Part of their business is selling pre-fabricated items off the shelf. However, the majority of their business is related to building specialty technical equipment to the customer’s specifications. Blozis has run into some issues with being long overdue with payments to vendors. In nearly all instances it was delayed because there had been no record of receiving the items. This was largely due to the expediter who went out and picked items up at nearby suppliers and brought them in and directly to the requestor, not stopping to give any paperwork to the receiving clerk. Blozis operates with an informal purchasing …show more content…
In some instances there are rush orders that the expediter would go pick up from nearby suppliers before a purchase order could be issued by supply. The expediter would always promise the supplier that a purchase order was to follow, but in some instances this step was missed and the supply department was receiving invoices for items that they thought had never been ordered. Both the Supply department and the vendor in these cases were mildly irritated that the expediter did not follow proper procedures. Additionally, when the expediter would bring items in, sometimes the receiving clerk did not receive the correct or any paperwork from the expediter and therefore items showed no record of receipt when the invoice came, thereby delaying payment until receipt was confirmed. Another situation was caused when the expediter picked items up from the receiving dock and delivered them to the requisitioner; in some of these instances items were going missing. Because of these various problems many suppliers were complaining about long overdue payment. And because of Blozis’ delinquency in payment they were losing several sizable discounts with various suppliers. The most common problem with the delinquent invoices was that there was no receiving report made up for the item. In all of these cases the expediter was sure the item

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