Maverick spend rate

Maverick spend occurs when employees purchase goods or services from non-preferred vendors, bypass approval workflows, or ignore negotiated contracts in favour of ad-hoc purchases. It is a persistent problem in most organisations, typically ranging from 10% to 30% of total expenditure.

The cost of maverick spend goes beyond the price differential. It fragments the supplier base, reduces volume leverage with preferred vendors, creates compliance risks, and makes it harder to forecast and control costs. When employees buy software from dozens of different vendors instead of using the enterprise agreement, the organisation pays more per licence and loses visibility into its total software estate.

Maverick Spend Rate = (Spend Outside Approved Channels / Total Spend) x 100

For example, if total organisational spend is 10 million pounds and 2 million flows through non-preferred suppliers or outside procurement processes, the maverick spend rate is 20%. Identify maverick spend by comparing transaction data against the approved vendor list and contract database. Transactions with vendors not on the preferred list or purchases that bypass the purchase order process are classified as maverick.

Make the approved procurement channel easier to use than the workaround. If employees bypass the system because it is slow or confusing, fixing usability will reduce maverick spend more than enforcement. Maintain a comprehensive and up-to-date preferred vendor catalogue that covers the categories employees actually need. Implement purchasing controls that route non-catalogue requests through a lightweight approval rather than blocking them entirely. Communicate the cost of maverick spend to budget owners so they understand the impact on their departmental savings targets.