Maverick buying: What is it?

Imagine it's Friday afternoon. A machine in production has stopped working because the necessary spare part is missing. The employee in the specialist department picks up the phone, orders directly from the supplier, and bypasses all purchasing processes. No consultation, no review, no documentation. The process is completed quickly, and the problem appears to be solved.

But in the background, an invisible risk arises. The purchasing department was not involved, contracts were not used, and discounts remain unused. This behavior is known as maverick buying. It describes purchases that are made outside of defined processes and thus cause economic and organizational disadvantages.

Maverick buying is not a rare phenomenon, but an everyday occurrence in companies with decentralized structures or unclear purchasing guidelines. In this article, you will learn what maverick buying means, how to keep track of the maverick buying rate, and what measures you can take to strengthen your purchasing department and secure your purchasing processes.

What does maverick buying mean?

The term “maverick buying” comes from English and is often translated into German as “wilder Einkauf” (wild purchasing). It refers to the procurement of goods or services outside of the designated purchasing processes. Typically, orders are placed without involving the purchasing department.

This can happen for various reasons: Employees may consider the official procurement channels to be too complicated or too slow, or they may believe that they can obtain better terms from alternative suppliers. However, the opposite is often the case. Maverick buying leads to a lack of transparency, price deviations, and a weaker negotiating position with suppliers.

Why is Maverick Buying problematic for the purchasing department?

The purchasing department is responsible for managing procurement processes, negotiating framework agreements, and ensuring compliance. When individual departments procure without consultation, purchasing loses control over spending and contract terms.

This has several consequences:

• Loss of volume discounts: If purchases are not made centrally, price advantages that could be achieved through bundled quantities are lost.

• No use of framework agreements: Contracts that have been carefully negotiated are not used.

• Unclear responsibilities: Incorrect orders or quality defects are difficult to track.

• Compliance risks: Legal requirements or internal guidelines may be violated.

Maverick buying not only complicates the work of the purchasing department, but can also lead to direct economic damage.

Causes of maverick buying

To prevent maverick buying, it is important to understand its causes. These can vary depending on the company structure and culture.

1. Lack of training and awareness

Many employees are unaware that their purchasing behavior circumvents existing processes. They lack knowledge about the role of the purchasing department and the reasons for centralized procurement.

2. Complex or slow processes

If the official procurement channel is perceived as too bureaucratic or time-consuming, employees look for alternative ways. Especially in urgent cases, they tend to order “through official channels.”

3. Inadequate digital solutions

In the absence of user-friendly tools such as e-procurement platforms, many employees resort to manual or unofficial ordering channels.

4. Decentralized corporate structures

In organizations with multiple locations or autonomous departments, it is more difficult to adhere to uniform purchasing processes. Without clear guidelines, maverick buying occurs more frequently.

Risks and consequences for companies

The consequences of maverick buying are not always visible at first glance. Often, there are hidden costs that add up over months or years. Here is an overview of the most important risks:

Cost increases due to inefficient procurement

Unauthorized purchases often lead to higher prices because framework agreements are not used. In addition, there is a lack of comparative offers and room for negotiation.

Lack of transparency in purchasing

Without central control, there is no complete overview of suppliers, expenses, and contract terms. Strategic purchasing decisions become more difficult.

Weaker negotiating position

If the actual purchasing volume is unknown or not bundled, companies lose influence over suppliers.

Increased susceptibility to errors and legal risks

Violations of internal guidelines or legal requirements can result in legal consequences. This applies in particular to industries subject to documentation requirements or companies with procurement specifications.

The Maverick Buying Quote – Key Figure for Transparency

A key indicator for measuring maverick buying is the maverick buying quote. It indicates the proportion of purchasing activities that take place outside of defined processes.

How is the maverick buying quote calculated?

The formula is:

(purchasing volume outside of approved processes) ÷ (total purchasing volume) × 100

Example:

If €150,000 of a €1,000,000 purchasing volume was spent without the purchasing department's involvement, this results in a maverick buying rate of 15 percent.

Why is the Maverick Buying Quote important?

• It creates transparency regarding deviations from the rules in purchasing.

• It helps to define goals for process optimization.

• It is an indicator of the efficiency of the purchasing department.

• It enables benchmarking with other companies or locations.

The goal should be to reduce the Maverick Buying Ratio to a minimum through targeted measures.

Measures to prevent maverick buying

The good news is that maverick buying can be actively prevented. With the right measures and a combination of technology, processes, and cultural change, unauthorized orders can be significantly reduced.

1. Introduce e-procurement systems

Digital procurement platforms make it easier for employees to access authorized suppliers and products. Intuitive user interfaces promote acceptance and lower the threshold for using the official channel.

2. Clearly communicate purchasing guidelines

Transparent and easy-to-understand rules help employees recognize what is and is not permitted. This is particularly effective when the guidelines are regularly trained and actively supported by management.

3. Involve the purchasing department at an early stage

The earlier purchasing is involved in projects or purchases, the better maverick buying and unnecessary costs can be avoided. This also strengthens the position of the purchasing department within the company.

4. Train and raise awareness among employees

Those who understand the advantages of centralized procurement will be more willing to use established processes. Training should not only cover technical topics, but also convey the benefits for the company and the risks posed by maverick buying.

5. Establish reporting and monitoring

Dashboards or automated reports can be used to quickly identify deviating purchasing behavior. Conspicuous ordering patterns can be specifically analyzed and addressed.

FAQ – Frequently asked questions about maverick buying

What is maverick buying?

Maverick buying is often referred to as “unauthorized purchasing.” It describes orders placed outside of official purchasing processes.

What are the risks of maverick buying?

The most common risks include higher costs, lack of contractual obligations, reduced bargaining power, and potential compliance violations.

How can maverick buying be avoided?

By introducing digital procurement solutions, clear purchasing guidelines, training, and close cooperation with the purchasing department.

What is the maverick buying rate?

It indicates the percentage of purchasing volume that is handled outside of approved processes. A low rate indicates well-established purchasing processes.

Conclusion: Maverick buying as a strategic challenge

Maverick buying is like a small crack in the foundation: inconspicuous at first, but over time it can cause considerable damage. When employees repeatedly place orders outside of established processes, not only does the purchasing department lose track of things, but the company also loses an important lever for cost control and quality assurance.

But the good news is that every crack can be repaired, provided it is detected in time. Companies that invest in transparent purchasing processes, create clear structures, and get employees on board achieve more than just order in purchasing. They strengthen their resilience, save costs in the long term, and lay the foundation for trust-based, efficient cooperation between purchasing and the various departments.

Reducing maverick buying is not a project for one department; it is a shared responsibility and an investment that pays off many times over.