‘Maverick spend’ is the expense resulting from purchases made within an organization by circumventing pre-established procurement policies and other standard corporate procedures. Such rogue spending and lack of automation can cause serious losses to a company’s bottom line.
As illustrated by data from APQC’s Open Standards Benchmarking in procurement, organizations that do not take steps to automate transactional processes simply cannot match the speed, efficiency and effectiveness of those that do.
Rather than hoping that employees will study purchasing requisition policies in an employee handbook or intranet, utilizing Automated Approval Routing embeds your purchasing requisition policies, such as spend limits for an individual, or group of individuals, spend limits on items, or category of items, the use of primary vendors…virtually any combination of rules your purchasing or finance department sets forth, whether they be simple, or highly complex; these policies are now embedded directly into the buying experience. Your procurement team is freed up from manually reviewing purchase requisitions for policy violations with options to inform users or strictly enforce purchasing policies.
With the use of automated approval routing you can enforce purchasing rules established by your finance department for the purpose of review, revision, and approval/rejection of a purchase requisition. This is ‘key’ to managing pricing control and making certain that purchasing outside formally defined processes and authorized vendors, or ‘Maverick spend’, is eliminated and compliance is maintained.
ISS Group’s Business Process Improvement suite of solutions for QAD EA offers a comprehensive e-Procurement solution, which will streamline procurement processes; achieving cost savings while saving your employees valuable time when buying goods and services, or even looking for the right information to complete their job.