Purchasing Practice in Dutch Municipalities

The purchasing function is of great importance for the business community as well as for governmental organizations. In industrial companies purchasing already accounts for 60 to 90 percent of total turnover. This share is expected to grow as companies tend to increasingly outsource their non-core activities. In governmental organizations purchasing’s role is also becoming increasingly significant, especially in light of the continuous pressure to cut public spending, both at the central and local levels. For example, the Dutch General Auditor’s Office2 concluded in 1991 that the Dutch government, in general, lacks sufficient price awareness and does not pay enough attention to quality in its purchasing practice. In addition, the European Community (EC) directives on public procurement play a significant role.