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"Maverick buying: definition and important aspects for buyers"

Maverick buying not only causes unnecessary costs, but also jeopardizes strategic goals and compliance requirements in purchasing. This structured overview shows you how to recognize uncontrolled procurement processes, understand their causes and develop effective countermeasures.

Maverick buying in a nutshell:

Maverick buying describes unauthorized procurement processes outside of a company's defined purchasing processes and guidelines. This represents a considerable risk for purchasing, as it leads to higher costs, a lack of transparency and the circumvention of framework agreements.

Example: A specialist department independently orders IT hardware for 3,500 euros directly from the dealer, although a framework agreement exists with a preferred supplier who would have granted a discount of 22% - this leads to avoidable additional costs of 770 euros per order.

Contents

Introduction to Maverick Buying

Maverick buying, also known as wild or decentralized procurement, represents a significant challenge in modern procurement management. It refers to the purchase of goods and services outside of a company's established procurement processes. This uncontrolled purchasing behavior often leads to higher costs, a lack of transparency and a weakening of the strategic purchasing position. The following paper examines the causes, risks and consequences of maverick buying and presents effective strategies for curbing this problematic procurement practice.

What is Maverick Buying?

In purchasing, maverick buying refers to the phenomenon whereby employees make unauthorized purchases outside of established procurement processes. This involves circumventing internal company guidelines, existing framework agreements and approved suppliers. This can lead to higher costs, quality problems and risks in terms of compliance and supplier selection.

Core elements of Maverick Buying

  • Circumvention of processes: Purchases are made without adhering to defined procurement procedures and approval processes.
  • Use of unauthorized suppliers: Orders are placed with suppliers who are not contractually bound or audited.
  • Lack of documentation: Transactions are not properly recorded, which makes transparency and control more difficult.
  • Significance for purchasing

    Maverick buying represents a significant challenge for companies. It undermines the purchasing department's efforts to control costs and make optimum use of contracts. The lack of standardization can lead to financial disadvantages, inefficient processes and increased risk potential. It also impairs the ability to accurately analyze spend and make strategic decisions.

  • Cost increase: Waiver of negotiated prices leads to higher expenses.
  • Quality and delivery problems: Untested suppliers can mean poor quality or unreliable deliveries.
  • Compliance risks: Violations of internal guidelines and legal requirements can have legal consequences.
  • Whitepaper: Maverick Buying - Strategies for reducing maverick spend in purchasing

    Strategies for avoiding maverick buying

    Reducing maverick buying requires clear procurement guidelines, transparent processes and sensitizing employees to comply with them. The use of technology-supported solutions can support compliance with purchasing processes.

    Practical example

    A medium-sized company found that a significant proportion of office supplies were being ordered outside the central purchasing department. Employees were ordering directly from local suppliers, which led to higher costs and inconsistent quality:

    1. introduction of an e-procurement system: The company implemented a procurement platform on which approved suppliers and products are listed.

    2. employee training: workshops were held to demonstrate the benefits of central purchasing and explain how to use the platform.

    3. approval workflows: Automated approval processes ensured that orders comply with the guidelines.

    Result:

    After three months, the proportion of unauthorized orders fell by 80%. The company achieved cost savings of 10% in the area of office supplies and improved delivery quality through standardized products and reliable suppliers.

    Evaluation and strategic findings

    ✓ Critical success factors

    → Process optimization: implementation of lean, user-friendly procurement processes to reduce bypass purchases

    → Digitalization: use of modern e-procurement systems with intuitive user interfaces and automated workflows

    → Change management: systematic involvement and training of all stakeholders for sustainable behavioral change

    ⚠ Challenges

    → Barriers to acceptance: Overcoming ingrained procurement habits in the specialist departments

    → System integration: complexity when connecting existing ERP systems and supplier portals

    → Compliance monitoring: Continuous monitoring and enforcement of procurement guidelines

    Future trends and strategic implications:

    "The future lies in the preventive control of procurement behavior through intelligent systems."

    → AI-based early detection of maverick buying patterns

    → Predictive analytics for needs-based procurement strategies

    → Mobile procurement solutions for more flexible procurement processes

    → Blockchain-based contract transparency and compliance assurance

    Conclusion on the maverick buying strategy

    Maverick buying is a serious problem in modern procurement that can be effectively combated with targeted measures. The combination of clear processes, user-friendly e-procurement systems and continuous employee training forms the basis for successfully curbing evasive buying. Companies that systematically tackle this challenge not only benefit from cost savings, but also from increased transparency and improved compliance in purchasing.

    Further resources