The Gartner Group states that ‘Maverick Spend’, or uncontrolled spend…at times referred to as Tail Spend, often falls below the radar of enterprise procurement policies because the transactions that constitute it are relatively small. Yet, cumulatively, these maverick transactions form a substantial sum.
In many cases, enterprises are spending more in maverick spend every year than they are with their biggest supplier. Yet, as it’s largely or entirely unmanaged, due to management having only modest visibility, or more likely no visibility at all…most organizations probably aren’t even aware that the problem is so prevalent.
This problem of unmanaged spend has created a crisis, and is resulting in enterprises needlessly wasting millions every year.
The ‘Big Fix’
Adopting systems or software to simply source suppliers, and streamline your procurement processes…! Maintaining compliance with supplier contract pricing utilizing approval routing, and making ‘purchasing’ accountable; all so that you can achieve cost savings while saving your employees valuable time when they are buying goods and services. Enterprises can not only source and purchase business goods and services, they can also collaborate and communicate directly with suppliers – all online, from any device, from ANYWHERE in the world.
Organizations – from Pete’s manufacturing to GE are beginning to do business better by addressing their unmanaged purchasing. Their supply chains are becoming more efficient by digitizing their procurement and increasing visibility of their indirect spend behaviors.
At ISS Group we recognized the need for such Business Process Improvement (BPI) solutions over two decades ago, and today, ISS Group continues to deliver to the QAD EA community Agile BPI solutions, such as e-Procurement, which digitize business processes to connect people and processes via the cloud, mobile devices, and social networks, for Mid-market and Divisions of Fortune 1000 Manufacturing and Distribution organizations.