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Procurement Audit & Review



emptum reveal your real price and supplier flow

A lot of companies - both in Retail and in Industry - which buys already for years in low cost countries, do not always know the name of the original producer. Often they do not have a concrete idea on the real net price nor for the number of traders or buying agents and which added values as well as how much commission they have. emptum make your complete entering value chain transparent,... with or without your own local procurement office.

Sourcing in low cost countries: The Challenge

Sourcing in low cost countries has its pitfalls. Buying organizations incur substantial losses through inefficiencies in the buying process; operational weaknesses within a buying process that can be abused will be abused; losses as the result of illicit commissions -i.e., kickbacks routinely received by buyers -, amount to millions of euros and put buying organizations in unnecessary jeopardy.

A cost-efficient solution for sourcing in low cost countries

  1. Procurement Audit & Review is concerned with providing buying organizations both retail and manufacturers - the best sourcing solution in terms of achieving competitive total cost of procurement, optimum delivery and quality performance.

  2. Procurement Audit & Review is concerned with how a buying organization sources. It is not the intention to tell the buying organization where to buy which item at what price; this is an other service that emtpum can offer.

  3. It is not the aim to substitute or replace existing agents or buying arrangements. Neither is it the aim to eliminate agents and to advise the buying organization to go directly to the manufacturers, unless the buying organization is asking for this - existing arrangements can be adequate but may have room for improvement-.

  4. Procurement review and audit is applicable to both retail sourcing and direct material procurement, is applicable to sourcing in any low-cost country.

The objective of Procurement Audit & Review

The objective of Procurement Audit & Review is to provide sourcing solutions that are tailored to specific local conditions, and that provide optimum value. Anecdotal evidence suggests that kickbacks can amount to 5%-10% of FOB; however, the nature of the problem is such that hitherto no statistics have been available that demonstrate the extent and severity of the problem. Conjectural statements do not convince the client!