What is Maverick Buying?

Maverick buying is a corporate procurement practice in which employees purchase goods or services outside of established procurement policies or contracts. This type of purchasing can lead to inefficient processes and higher costs.

Maverick Buying is the unauthorized procurement of products or services outside of established company guidelines. These purchases are often made without regard to existing contracts or agreements, which leads to fragmentation of the procurement process and can weaken the company's negotiating position.

Such purchases can be made through individual employee decisions or by departments bypassing established procurement channels.

Where does the term Maverick Buying come from?

The term "Maverick" is American and originally referred to unbranded cattle owned by Samuel Maverick, a Texas rancher, during the early 19th century. In a figurative sense, the expression is used for people who do not follow the rules or act unconventionally.

How can Maverick Buying be prevented?

To prevent maverick buying, companies can use various strategies. This includes implementing strict purchasing policies and approval processes, promoting transparency in purchases, and educating employees on the importance and benefits of adhering to procurement procedures. This can be done, for example, by using purchasing software.

Furthermore, it is helpful to simplify the procurement processes and make them more attractive so that employees are more inclined to use them instead of acting on their own.

What is an example of Maverick Buying?

For example, maverick buying might occur in a large technology company where a project manager decides to purchase computer hardware directly from a new supplier without consulting purchasing. He believes this will enable him to deliver faster. However, this action can lead to problems if the supplier does not meet company standards or demands higher prices than existing contracts.

Maverick Buying: Conclusion:

Maverick buying poses a challenge for companies as it increases costs and reduces the efficiency of the purchasing process. By taking deliberate steps to curb this behavior, such as clear policies, improved communication and regular training, companies can minimize the negative impact.

An effective procurement strategy that takes employee needs into account can help avoid maverick buying and increase overall procurement efficiency.