Taking on Maverick Spend

April 3rd, 2007 at 07:07am David Bush - Iasta

In Gun Control, a recent article over on SupplyManagement.com, some methods to relieve your organizational maverick spend headaches were discussed. This was a good article, and the key tips deserve to be highlighted.

One method is to centralize purchases through a central team whenever possible to eliminate duplicate orders. The center can institute a policy where invoices without a PO number are not accepted and force all suppliers who want to do business with the company to accept the policy.

Another method is to involve end users in the sourcing and award contract because end users will find it easier to use contracts they are part of rather than contracts thrust [up]on them by purchasing departments. Regular communication will ensure that purchasing policies and procedures are well understood by the entire organisation.

A third method is to focus on processes. Make sure the request-to-purchase process is clear and easy to follow, and that controls are well understood and enforced. In addition, demonstrate the process will save them time, effort, and, ideally, cost in the improved process.

Remember that the best way to control maverick spend is to prevent it, and a system that does not allow orders to be placed outside of purchasing is key. Furthermore, the system should be linked to invoice payment, and suppliers must understand this. Finally, inform the stakeholders that maverick buying will no longer be tolerated, and why.

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Entry Filed under: General, Supply Management Best Practices, Technology