Are you concerned that your Purchasing Department does not act in the best interest of your organization? This is a common concern but one that is rarely acted upon. Due diligence, internal reviews, ISO Certifications and third-party audits focus more of processes and procedures than they do on uncovering corrupt or negligent employees. Furthermore, Internal Audits often uncover minor offences, such as petty theft or poor record keeping, while the biggest threat to profitability and to the long-term survival of an organization is overpaying for the goods and services needed to run your operation. The only method that ensures that your Purchasing personnel are acting in your best interests is a Forensic Audit.
HRH Partners has a proven system that identifies Buyers who are not getting you the results your organization deserves. Corrupt Purchasing personnel often use “straw” distributors, manipulate bid packages and sneak in “add-ons” after the contract is signed to gain a personal financial advantage. They will follow guidelines and get multiple quotes, knowing that the fix is in for their favorite vendor. None of these tactics are uncovered during routine audits.
Furthermore, tickets to sporting events, use of vacation homes and vendor-sponsored golf outings are just some of the non-cash payoffs that you unwittingly pay for. However, these costs are not your main exposure. The real damage is done when you overpay for something due to awarding a contract to a vendor who fraudulently won the business. On several occasions, we have uncovered overpayments in excess of 200% due to this practice.
Let HRH Partners work for you in cleaning up your Purchasing operation. We are discreet (most of our work is done off-site), non-intrusive and we work independently, so your employees will not know we are doing our investigations. There are usually not more than two agents assigned to a project, so the cost is reasonable. The first phase of the assignment cost less than $25,000 and the initial results are submitted within two to four weeks. Our Forensic Audit establishes industry-accepted benchmarks and then ensures that all of your major purchases are at or below these specific benchmarks.
Please let me know if you would like to discuss our services and how we can help you build a Purchasing Department based on results and integrity.
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