Maverick Buying is a term used in procurement management to describe the undesirable behaviour of individual departments placing orders on their own authority without the involvement of the purchasing department. There are many reasons for maverick buying, and in some cases it can have serious consequences for the business.
Causes of maverick buying There are various reasons why individual departments place orders on their own authority without involving the central purchasing department.
For example:
- Acceleration of the procurement process
- Independence in the decision-making process
- Lack of knowledge of purchasing specifications
- Lack of C-parts management
Consequences of maverick buying
Independent procurement of C-parts by individual departments can be damaging to your business. Purchase prices are often unnecessarily high due to low volumes, lack of price comparison and/or lack of price negotiation. A lack of legal certainty for employees regarding returns can also lead to Missing order data complicates downstream processes such as receiving and invoice verification, resulting in significant internal costs. Data management within the company’s ERP system is also often out of control due to missing, incorrect or duplicate data on auxiliary and operating materials..
How to avoid maverick buying There are a number of ways to avoid maverick buying, which in combination either prevent the causes of maverick buying or promote control through centralised purchasing. Here are some tips to help you:
- Introduce clear and transparent rules and structures for purchasing C-parts (C-parts management).
- Ensure simple and short ordering processes for all employees.
- Use a suitable e-procurement solution that allows your employees to place all necessary orders.
- Ensure compliance, for example by appointing a representative for each department.
- Talk to your employees about the benefits of the policy.
