Maverick Buying: 6 Steps For Stopping It

PurchTips edition #272


Click here for the printer-friendly version.

How Can You Stop Maverick Buying?

As defined in my book, The Procurement Game Plan: Winning Strategies and Techniques for Supply Management Professionals, "maverick buying" happens when a purchasing department "establishes an enterprise-wide contract, yet many users within the organization still buy from other suppliers." Eliminating maverick buying requires a plan with multiple components, including these six steps:

Step #1: Prohibit maverick buying as a company policy. The most important component of preventing unauthorized purchasing is to ensure that top management adopts it as a company policy, not just a purchasing policy. With company policies, there is an implication that, if you break the rules, you will be disciplined. This serves as a strong deterrent.

Step #2: Establish clear processes. There should be clearly defined ways of properly buying goods and services. The purchasing department should document how goods and services are to be bought and this documentation should be a source of reference for any employee who needs to make a purchase.

Step #3: Educate potential offenders. It is important to have an education program, led by the purchasing department, that helps people understand what the approved and prohibited ways of purchasing are. Many times, the primary reason employees engage in maverick buying is that they are unaware of what they should be doing. Additionally, educational programs enable purchasing departments to also explain why it is important to purchase goods and services in accordance with company policy - many employees do not know such rationale and think that policies are just put in place for the sake of bureaucracy.

Step #4: Use technology. Technology, such as eProcurement systems, can be implemented to ensure compliance. By funneling potential offenders to the correct goods, services, and suppliers and making it the easiest way for them to purchase in that manner, compliance can be easy. Plus, eProcurement systems offer controls that can prevent unauthorized purchasing.

Get steps #5 & 6 on my blog:

Do You Want a More Rewarding Procurement Career?

Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.

Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!


Need Better Performance From Your Procurement Team?

Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.

You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.

Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.


Are You Getting The Most Out of Your NLPA Membership?

Members of the NLPA get more than just articles like this by email. As a member, you also get access to:

  • The Procurement Training & Certification Starter Kit
  • The latest Purchasing & Supply Management Salaries Report
  • Leading-Edge Supply Management™ magazine
  • Members-only webinars 10x per year
  • And more!

If you haven't been taking advantage of these benefits, why not log in and start now?