Brämer & Partner International Project Management

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Purchasing

For small companies


Not only large corporations or medium-sized enterprises are in the international competition, also and especially small traders, online retailers and producers have to face this challenge.

Today, the procurement of goods, spare parts, semi-finished products, raw materials and accessories from German suppliers is indispensable in order to be competitive in the home market. This is the only way to offer the product diversity desired by the customer at corresponding market prices.

This has become much easier due to the European Union, international trade and free trade agreements, as well as new practices and free online trading. If the valid laws and regulations are observed, the purchasing of almost all goods from Germany is simply possible.

But the devil is in the details. It is not easy to keep the overview of all the laws and regulations. And it is diffcult to find the supplier who delivers precisely the ordered goods in a timely and correct manner. For small companies in particular, good planning, the best selection of suppliers and a legally secure procedure is indispensable, because a fault, a wrong delivery, a penalty, a wrongly calculated duty rate or a not expected multiple taxation (e.g. due to BEPS) can become existence-threatening.

Therefore, with our knowledge and our local partners, we are happy to support you in selecting the best supplier and in the safe organization of your supply chain. Our cooperation can take place in the form of a project, or you decide first for our internationalization check at a reasonable fixed price.

Blindtext

As in every project, the success of an procurement in Germany depends on good planning, because this is the only way to avoid unpleasant surprises. The first step is to identify and evaluate all the parameters that may influence the project. These can be: trade barriers (embargoes to products or countries), duties and taxes, currency risks due to exchange rate fluctuations, product quality, patent infringement, corruption, liability risks, warranty and guarantee, delivery reliability (quantity and deadline) and so on.


If all this information are available, we'll calculate the purchase price which has to be achieved. In addition, we calculate from which quantity the cost of storage, duties and taxes, and the cost of capital binding are compensated.

So you'll ger the maximum purchasing price as well as the minimum order quantity for a profitable procurement in Germany.


Now the right supplier has to be found and selected. For this purpose, at first all requirements the supplier has to meet are determined. In addition to safe product quality, this also includes its behavior in the past and its financial stability. It is e.g. to verify that the supplier has a (real) ISO certification and that his products (rightly) bear a CE mark.



As next, the contractual conditions must be negotiated and, if necessary, fixed in writing. Special attention has to be paid to international conventions in order to conclude a legally watertight contract. Standard rules are, among other things, the terms of delivery and payment, the purchase quantity, the liability rules and the jurisdiction. In addition, many other positions can be regulated depending on the project. But internationally you should never order unaudited and unregulated through an online platform. The risk of loss is simply too high.


Most German suppliers ship smaller quantities either from the factory (ex works) or free on board (FOB), that means the delivery takes place to the port of shipment or airport. From there, as an importer, you must organize and pay for the supply chain including customs processing. A number of documents (such as certificate of origin, Proforma Invoice, etc.), and your customs and tax numbers are required. It is recommended to consult a service provider with knowledge of the handling of the transport and customs. Otherwise you run into the risk that the goods "hang" in the customs. This does not only cause delays in delivery, but also costs not included in the calculation.


If the price advantages and the quantity now promise a lucrative business, if the supplier has been thoroughly tested and if the supply chain is organized till your own warehouse, your successful procurement in Germany can begin.





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