Store purchasing processes require focus on competence and conflicts of interest.

Why are purchases so vulnerable?

Purchasing processes often involve large sums, long-term agreements, and relationships with market players. This makes them particularly susceptible to conflicts of interest. Common examples include:

• An employee sits on the procurement committee and has a close relative in one of the supplier companies.

• A middle manager has small shares in a company participating in a procurement without considering the implications.

These situations occur more often than one might think and are rarely picked up without good routines and systems. For companies with large or recurring purchases, this is an area that deserves much more attention than it usually receives.

What is required of the company?

In the public sector, the Public Procurement Act and the Public Administration Act set clear requirements for impartiality. However, private companies must also adhere to their own guidelines, expectations for transparency, and risks of breaching loyalty obligations.

The requirements can be summarized as:

1. Sufficient overview of potential conflicts of interest

2. Systematic assessment of impartiality at all relevant levels

3. Documentation and verifiability

If you cannot demonstrate that an assessment of impartiality has been made, it is considered as if it has not been made.

How can this be resolved in practice?

A digital impartiality system allows for linking assessments of impartiality directly to purchasing processes. This may involve, for example:

• Automatic retrieval of information from public registers

• Self-declarations for all involved in a competition

• Alerting when connections to suppliers, close associates, or past engagements arise

• Secure documentation and traceability for audits and controls

System support frees up time, reduces errors, and ensures that the assessment of impartiality becomes part of the purchasing process.

It's not about suspicion, but about trust

No business wants to experience that a purchasing case is called into question because impartiality was not assessed or documented. Having a systematic approach in this area is not a burden, but a protection for both the business and its employees.

At Arx Compliance, we help businesses gain overview, structure, and control.

Is your purchasing process robust enough to handle impartiality?

We would be happy to assist you with a non-binding review.