procuretopia

(n.): the ideal, utopian environment that procurement organisations thrive in; a perfect world where 100% of spend data is visible.

Perception vs Reality: A Report on Maverick Spend

Perception vs Reality: A Report on Maverick Spend

More often than not, employees are purchasing products and services outside of the negotiated contract - leading to maverick spend.
 
The Damage is Done
Many companies lose 10-20% of targeted savings due to maverick spend. It can cost companies up to 2% of all indirect spending due to lost savings opportunities and inefficiencies. That amounts to millions of pounds wasted every year.
 
Face the Numbers

  • 100% of procurement leaders believe that maverick spend is critical

  • 78% of leaders say the leading cause of maverick spend is that employees believe their purchases are too small to have an impact

  • 58% of end-users and buyers are far more likely than source-to-pay professionals to say that the biggest consequence of maverick buying are dissatisfied internal customers

  • 25% of our peer respondents don’t consider maverick spend a priority.

 
Find Your Procurement Utopia
In Q2 2018, The Hackett Group conducted a survey to gain insight into the strategic importance of maverick spend reduction, understand the adoption of specific procurement practices, and differentiate how top performing organisations approach this topic.