Maverick Spend Analysis, How to Re-Plumb Your Spend and Savings Flow – 50 Shades of Pay: Shade 14 [Plus+]

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In our last edition of the 50 Shades of Pay series, we touched on how to analyze maverick spending and patch a few of the “savings leaks” through reporting and through a fail-safe P2P system. But this is only a stopgap measure, especially if there are no systems that can be set up to “guide” the requisitioner to a specific product from a specific supplier. Why? Even if the preferred supplier meets the need, people are often too busy to look for a contract or read the memo and will generally go back to buying what they want when if they feel procurement has stopped watching over their shoulder. They want to be effective. And if the product from the preferred supplier doesn’t meet the need, they will continue to bypass the system at every opportunity, especially if the closet procurement person in them wants to play the “beat the corporate price” game. You can certainly allow this (hotel rooms and rental cars are a good examples) and even have “meet-or-beat” clauses with your suppliers, but most don’t want to deal with the hassle and cost of managing this. The real solution is to identify why they are doing it and then fix it.

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