"Buyers find supply solutions, suppliers and negotiate prices from year to year. Purchasers place purchase orders, make sure they do not miss anything and they are active on receiving deliveries within agreed terms. In practice, functions are often merged in SMEs".


Observations usually made:

> Few checks are done on negotiated purchase prices.

> Lack of anticipation of the usual question: "how much will increase prices next year ? What do we put in the budget ?..."

> Buyers do not benefit from other departments insight which could bring more power in negotiations and give an independent opinion on the results of those negotiations. Be careful about internal control risks attached to the function (personal agreement between buyers and suppliers). Be careful about contingent liabilities resulting from purchase orders brought forward...

> Few English language practice for International supplies at competitive prices.

> The bidding practice is rare.

> The practice of consolidating volumes purchased by a group of companies is rare.

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