Tackling Maverick Buying

At the heart of an effective, efficient procurement strategy sits the need to build transparent, reliable processes which ensure the best possible value. When it comes to delivering those operational benefits for your organisation, one enemy stands above others – maverick buying.

What is maverick buying?

Whether you call it rogue spending, maverick buying, or unmanaged spending, this poor business practice covers the purchasing acts of individuals or departments that fail to follow proper, established procedure. That means either wilfully or mistakenly failing to adhere to the procurement strategies that are essential for the efficient, cost-effective operations of your business.

Why is it such a problem?

Smart procurement is about understanding and controlling every element of your processes, and leveraging that information to deliver cost-savings and efficiency. In bypassing that purchasing arrangement, maverick buying not only runs the risk of higher individual costs, but undermines the wider benefits of the system that is in place.

Maverick buying often falls under the realm of indirect spending – that is the area of spending that covers everyday operations, rather than spending on direct inputs for the likes of manufacturing or production. In fact the Hackett Group estimates that maverick buying could amount for as much as 2% of all indirect spending. That might not sound a lot, but like any business function, 2% unmanaged costs can make a significant difference in your ability to remain competitive.

What causes maverick buying?

Maverick buying can often be attributed to poor oversight or failure to implement appropriate, transparent, and effective procurement systems. The 2016 ProcureCon Benchmarking Report showed that the main causes of maverick buying were as follows:

What impact does maverick buying have?

The 2016 ProcureCon Benchmarking Report clearly highlights the challenges maverick buying raises:

Without the necessary oversight, procurement professionals find it increasingly challenging to leverage economies of scale and positive supplier relationships to deliver true value for an organisation. In a market where 79% of Chief Procurement Officers are focussed on reducing costs, rogue spending provides a critical hurdle to success. So what can you do to tackle this challenge?

E-procurement tackles maverick buying

Procurehere’s user-friendly e-procurement solution provides a clear, transparent system that works to address the issue of maverick buying by helping embed simple-to-use procurement processes into the heart of your business strategy.

With a centralised resource for all your procurement needs, purchase requisition are easily raised and approved using established processes that remove frustrating delays that are often cited as a major contributor to maverick buying.

Procurehere allows users to create their own unique templates that fit the needs of your organisation, linked to established approval routes that offer smooth completion and seamless oversight for all your requisitioning needs. With our accessible, cloud-based solution, managers can readily approve or reference previous requisitions to ensure that all purchasing is done in the most efficient, effective way for your business.

Whatever your realm of operation, maverick buying presents a challenge for efficient, cost-effective procurement. The flip-side of that problem is that tackling maverick buying presents a significant opportunity for demonstrable cost-savings with a positive impact on your business. With the help of e-procurement tools like Procurehere, that solution might be simpler than you think.

Want to help tackle maverick buying in your business? Explore transparent procurement solutions with Procurehere.

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