Maverick spending, also known as rogue or off-contract spending, is a silent drain on procurement performance. It happens when employees bypass approved purchasing channels and processes, leading to inflated costs, contract leakage, and supplier proliferation.

Why It’s a Big Problem

According to multiple industry reports, maverick spend can account for up to 20% of indirect procurement costs. This lack of compliance not only undermines negotiated cost savings but also introduces risks tied to vendor performance, legal exposure, and even brand reputation.

Common Root Causes:

• Lack of user-friendly procurement tools
• Slow purchasing approval processes
• Limited visibility into preferred suppliers
• Inadequate employee training
• Procurement analyses that are outdated or incomplete 

How to Control Maverick Spending

1. Deploy an Intuitive Procurement Platform
   Usability is key. Procurement systems that integrate catalogs, pricing, and vendor data into a seamless experience are far more likely to ensure user compliance.
   
   
2. Set Clear Procurement Guidelines
   Make it easy for departments to know what they can and cannot do. Define thresholds for approvals, specify preferred vendors, and distribute these policies broadly.
   
   
3. Create Role-Based Access
   Give teams access only to the suppliers and categories they are authorized to use. This cuts down on one-off purchases and out-of-scope spending.
   
   
4. Monitor with Real-Time Dashboards
   Set up dashboards to flag off-contract purchases immediately. Tie spend analysis reports to individual cost centers or even employees to identify repeat offenders.
   
   
5. Engage Stakeholders Across the Business
   Procurement must act as a service, not a roadblock. Involve finance, operations, and department leads in the design of purchasing processes to boost buy-in.

The Payoff

Companies that curb maverick spend don’t just save money, they increase buying power, consolidate purchasing, gain data-driven control, strengthen vendor relationships, and reduce audit headaches. It’s a win-win across compliance and performance.