Minimizing Maverick Buying: Your Checklist For Compliant Procurement
Anyone can go shopping, right? No! In the world of procurement, purchasing is actually a complex task that goes far beyond simply buying goods and services. Especially in larger organizations or companies, procurement plays a crucial role as it has a significant impact on financial performance and efficiency.
However, in the world of procurement, not everything always follows established rules. A clear example of this is maverick buying: It is a phenomenon in which employees in a company purchase goods and services outside or parallel to the established procurement process, without the knowledge or involvement of the purchasing department. This uncontrolled practice can lead to a variety of problems that affect the company’s efficiency, drive up costs and prevent compliant procurement.
The effects of maverick buying
Maverick buying poses a number of problems. To mitigate this problem, it is crucial to develop a clear strategy to reduce and eliminate the impact. Below are the main problems caused by maverick buying:
- Higher costs: Companies often negotiate framework agreements with suppliers to ensure favourable prices, delivery terms and quality standards. When purchasing without set guidelines, these contracts are not taken into account, which leads to missed savings opportunities.
- Lack of transparency in the procurement process: Maverick buying often leads to a lack of transparency in the procurement process, as invoices are not accurately allocated and purchase orders are not recorded. This results in a lack of clarity and challenges in monitoring expenditures, as there is a absence of a comprehensive overview of the spending activities.
- Distorted monitoring: In the absence of transparency in the procurement process, it becomes challenging to fully track expenditures. This hinders the effective monitoring of actual expenditures and requirements, thereby significantly impairing budget planning and performance monitoring.
The Solution – Our Checklist Against Maverick Buying!
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- Identify your maverick buying quote: The term „maverick buying quote“ pertains to the portion of the financial volume that deviates from established and standardized procurement processes. Analyzing such deviations helps enhance procurement efficiency, maintain compliance, and optimize overall financial management. Therefore, first step is to evaluate the current state of procurement processes by calculating the quote.
- Define clear guidlines and responsibilities: The next step is to define clear guidelines and responsibilities for your procurement process. These should be set out in writing. Which products and services may be…
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