1. You have few new suppliers. The same companies pariticipate in tenders every year.
2. The company has no clear procurement policies and regulations. Departments have their own rules, limitations and work flows.
3. The procurement function is manually managed. There exist some policies, but in fact everything works some other way.
4. The department (for example, production) is responsible for every set in buying: sets a request for a purchase, selects suppliers, and confirms the work done.
5. Many unexpected, ad-hoc expenditures. Employees argue that it is impossible to plan in advance in "this environment".
6. Suppliers word of mouth says that it's impossible to set a contract with your company without a bribe. Or the owner / CEO feels that there are loopholes for corruption somewhere in the procurement process.