Maverick buying occurs when goods or services are purchased outside defined procurement processes, approved suppliers, negotiated contracts or required approval routes. It can increase purchasing and process costs, weaken transparency and create procurement compliance and supplier management risks. Organisations can reduce it by combining a clear procurement policy with practical P2P processes, user-friendly purchasing systems, effective contract coverage and consistent collaboration between procurement, finance and business functions.
What Does Maverick Buying Mean?
Maverick buying means purchasing outside the sourcing and procurement framework established by an organisation.
This may involve an employee ordering directly from a supplier without involving procurement, selecting a non-approved supplier, bypassing an existing framework agreement or committing to expenditure before the required approval has been obtained.
The meaning of maverick buying is therefore broader than simply “buying without procurement”. The decisive question is whether a purchase follows the organisation’s agreed processes, responsibilities, contracts and approval requirements.
Maverick buying may be intentional or unintentional. Some employees may not know that an approved supplier or framework agreement already exists. Others may consider the official ordering process too slow or difficult. In some cases, a business function may deliberately bypass procurement because it prefers a particular supplier or needs a faster solution.
Not every deviation should automatically be treated as non-compliant purchasing. Approved exceptions, documented emergency purchases and strategically necessary one-off procurements may be justified. The difference is that a legitimate exception follows a defined decision route, involves the appropriate stakeholders and remains transparent.
An organisation should therefore distinguish between:
- purchasing outside the process without approval
- a formally approved exception
- an emergency purchase under predefined rules
- a strategic special requirement that cannot be covered through existing contracts
This distinction supports fair governance and prevents procurement controls from becoming unnecessarily rigid.
How Does Maverick Buying Develop in Organisations?
Maverick buying usually develops because procurement structures, processes and operational requirements are not sufficiently aligned.
Unclear responsibilities are a common cause. Employees may not know when procurement needs to be involved, who can approve a supplier or which purchasing channel applies to a particular requirement. This is especially challenging in decentralised organisations where sites, divisions or departments have developed their own ways of working.
Complex processes can also encourage employees to find alternative routes. Long forms, unnecessary approval stages, unclear responsibilities or slow response times increase the perceived effort of using the official process. A direct order from a known supplier may then appear easier.
Typical causes include:
- missing or unclear procurement policies
- purchasing rules that are difficult to find or understand
- lengthy approval processes
- unrealistic approval thresholds
- limited awareness of framework agreements
- unavailable or incomplete catalogues
- poor usability of procurement systems
- decentralised purchasing without common governance
- limited demand visibility
- unclear responsibilities between procurement, finance and business functions
- insufficient communication about preferred suppliers
- limited trust in procurement as a business partner
- missing procurement KPIs and weak process monitoring
A well-designed procurement organisation establishes clear roles, responsibilities and interfaces. However, formal structures alone do not prevent uncontrolled purchasing. Employees also need a practical route for meeting operational requirements.
What Are the Main Forms of Maverick Buying?
Maverick buying appears in several forms, but each involves a departure from agreed procurement controls.
Ordering from non-approved suppliers
A department may appoint a new supplier without completing the required sourcing, approval or supplier onboarding process. The supplier may meet an immediate operational need, but the wider organisation loses visibility over the decision and the commercial relationship.
Bypassing existing framework agreements
Employees may purchase products or services from another supplier even though a suitable framework agreement is available. This can reduce contract utilisation and weaken the organisation’s ability to consolidate demand.
Purchasing directly without procurement involvement
A business function may negotiate and place an order directly, even though procurement involvement is required. Procurement may only become aware of the commitment when an invoice arrives or a problem occurs.
Ordering without the required approval
A purchase may be placed before budgetary, functional or procurement approval has been completed. This can make responsibilities unclear and create additional work during invoice processing.
Purchasing outside the P2P process
Orders may be placed by telephone, email, purchasing card or supplier portal rather than through the approved purchase-to-pay system. The transaction may therefore be difficult to connect with the original requirement, contract or approval.
Creating a purchase order after the commitment
A retrospective purchase order is created after goods have been delivered or services have already been performed. Although the transaction may later appear in the system, the control function of the purchase order has been lost.
Why Is Maverick Buying a Problem?
Maverick buying reduces the organisation’s ability to manage spend, contracts, suppliers and procurement processes consistently.
Higher purchasing costs and lost consolidation opportunities
Uncoordinated purchases may take place at less favourable commercial terms. When requirements are spread across multiple suppliers, procurement has less visibility and fewer opportunities to consolidate demand.
The impact extends beyond the purchase price. Additional suppliers, separate invoices, manual approvals and retrospective purchase orders can all increase internal process effort.
Sustainable procurement cost management therefore needs to consider purchasing prices, transaction effort, supplier structures and contract utilisation together.
Higher process costs
Purchasing outside the standard process frequently creates additional work for procurement, finance and operational teams.
An invoice without a purchase order may require manual investigation. A new supplier may need to be created retrospectively. Missing approvals may require additional clarification. Each individual transaction may appear manageable, but recurring exceptions can place significant pressure on operational procurement.
A structured approach to operational procurement helps connect demand, ordering, supplier communication, approvals and invoice processing.
Reduced spend transparency
Expenditure outside approved systems can be more difficult to classify and analyse. Procurement may not know which supplier was selected, which contract conditions apply or whether similar requirements exist elsewhere in the organisation.
Limited transparency affects more than reporting. It can reduce the quality of budgeting, sourcing decisions, contract planning and supplier negotiations.
Procurement compliance risks
Procurement compliance means purchasing in accordance with the organisation’s internal policies, responsibilities, approval requirements and documentation standards.
Maverick buying can create gaps in approval records, supplier decisions and contractual documentation. Responsibilities may become unclear, particularly when a supplier has already delivered before the relevant stakeholders become aware of the commitment.
Clear procurement compliance supports accountability, but it should not be reduced to monitoring individual behaviour. Repeated deviations may also indicate that policies, processes or systems are not fit for purpose.
More suppliers and weaker supplier control
Uncontrolled procurement can increase the number of active suppliers. This creates additional effort for onboarding, data maintenance, performance management and commercial coordination.
A fragmented supplier base can also make supplier assessment more difficult. Purchasing volumes and performance information are spread across more providers, while similar requirements may be sourced independently.
Effective supplier management creates clear structures for supplier selection, evaluation, development and control.
Lower predictability and weaker governance
When commitments are made outside approved processes, procurement and finance may receive information too late. This can affect cash planning, demand forecasting, contract management and operational decision-making.
The organisation becomes more reactive because requirements are identified after decisions have already been made.
How Can Organisations Identify Maverick Buying?
Maverick buying becomes visible when spend, purchase orders, invoices, contracts, suppliers and system data are assessed together.
No single KPI provides a complete picture. A combination of indicators is needed to identify where deviations occur and why.
Useful warning signs include:
- invoices without a preceding purchase order
- purchases outside existing contracts
- low usage of preferred suppliers
- a high number of newly created suppliers
- orders placed outside approved procurement systems
- unusually fragmented spend within a category
- recurring retrospective purchase orders
- low catalogue usage
- limited contract coverage
- repeated exceptions within individual departments or sites
A practical internal measure can be calculated by comparing non-compliant spend with the addressable spend covered by procurement rules. However, the organisation must define clearly which expenditure is included and which approved exceptions are excluded.
The purpose of measurement is not simply to identify non-compliant transactions. It is to understand the cause.
For example, a high number of invoices without purchase orders could indicate weak process discipline. It could also mean that the existing P2P process does not handle certain service requirements effectively.
Procurement controlling should therefore connect KPIs with decisions and corrective actions rather than producing reports without clear ownership.
How to Prevent Maverick Buying: The Most Effective Measures
Maverick buying can be reduced when the approved procurement route is clear, practical and easier to use than an uncontrolled alternative.
Successful prevention combines policy, process design, technology, supplier management and communication.
Create a Clear and Practical Procurement Policy
A procurement policy should explain what employees need to do, not merely what they are prohibited from doing.
Employees should be able to identify:
- when procurement must be involved
- which suppliers may be used
- which approval thresholds apply
- how to initiate a purchase
- how framework agreements should be used
- who can approve an exception
- where urgent requirements should be escalated
The policy should use clear language and remain proportionate to the organisation. Excessive detail can make rules more difficult to apply.
Simplify P2P Processes
An effective purchase-to-pay process connects requisition, approval, ordering, receipt or service confirmation, invoice processing and payment.
The process should reflect different types of requirement. Standard products, complex services, capital expenditure and urgent operational purchases may require different approval routes.
Approval workflows should be based on value, risk and purchasing category. Too many approval stages can increase lead times without improving decision quality.
The objective is not to remove control. It is to place control at the points where it adds value.
Make Digital Procurement Easy to Use
E-procurement systems can improve transparency and process compliance when employees can find, request and track what they need without unnecessary effort.
Useful features may include:
- accessible supplier catalogues
- clear product and service descriptions
- visible approval status
- simple requisition workflows
- intuitive search functions
- transparent responsibilities
- integration with contracts and preferred suppliers
Technology should support the procurement process rather than reproduce inefficient manual steps in digital form.
A difficult system can encourage employees to create workarounds. User experience should therefore be treated as part of procurement governance.
Make Framework Agreements and Preferred Suppliers Accessible
A framework agreement only creates value when employees know that it exists and can use it easily.
Procurement should make approved suppliers and contracts visible through clear guidance, catalogues or system integration. Business functions should understand what is covered, who the relevant contact is and how to place an order.
Regular contract reviews can identify categories where coverage is missing or existing agreements no longer reflect operational requirements.
Measure and Improve Procurement Compliance
Procurement compliance should be monitored through a focused set of indicators.
Relevant measures may include:
- contract utilisation
- purchase order compliance
- invoices without purchase orders
- use of approved procurement systems
- preferred supplier usage
- retrospective purchase orders
- approved exception volumes
The objective is to identify patterns and improve the underlying process. Not every exception requires escalation, but recurring deviations should lead to a structured review.
Involve Business Functions Early
Business functions understand technical requirements, operational deadlines and supplier capabilities. Their input is essential when procurement policies, catalogues and approval processes are designed.
Early involvement improves process quality and acceptance. It also helps procurement distinguish between standard requirements and genuine specialist needs.
Procurement should be viewed as a partner that supports effective commercial decisions, not only as an approval function. Clear communication, reliable response times and transparent decision-making strengthen this relationship.
Define Responsibilities and Approval Thresholds
Every organisation should clarify:
- who can raise a purchase requisition
- who confirms the operational requirement
- who owns the budget
- when procurement involvement is mandatory
- who approves new suppliers
- who can authorise an exception
- how urgent requirements are escalated
Approval thresholds should reflect organisational size, risk and purchasing complexity. Thresholds that are too low may generate unnecessary administration. Thresholds that are too high may weaken transparency and control.
Review Maverick Spend Regularly
A one-off analysis will not create lasting change.
Organisations should review process and contract compliance by category, supplier, site, department and type of purchase. This makes it easier to identify where targeted action is needed.
Procurement should also assess whether corrective measures improve behaviour over time. A reduction in exceptions may indicate better process adoption, while a shift to another uncontrolled channel may reveal a new gap.
What Role Does a Procurement Policy Play?
A procurement policy creates a common framework for purchasing decisions across the organisation.
It should define the purpose and principles of procurement governance while giving employees practical guidance.
A robust policy should address:
- Purpose: What does the policy aim to achieve?
- Scope: Which entities, sites, departments and purchasing categories are covered?
- Responsibilities: What are the roles of procurement, finance, budget owners and business functions?
- Approvals: Which thresholds and approval routes apply?
- Supplier selection: Who may assess, appoint and approve suppliers?
- Contract usage: When are framework agreements and preferred suppliers mandatory?
- Documentation: Which information must be recorded?
- Exceptions: Which deviations may be approved and by whom?
- Escalation: How are urgent requirements, conflicts and unavailable supply routes managed?
The policy should be reviewed when the organisation, systems or procurement model changes. Rules that no longer reflect operational reality can lose credibility and increase non-compliance.
Why Prohibitions Alone Do Not Prevent Maverick Buying
Prohibitions alone are ineffective when the approved procurement process is too slow, unclear or difficult to use.
Employees are usually responsible for achieving operational objectives. If a required product is unavailable in the catalogue, an approval remains unresolved or the correct contact cannot be identified, they may face a conflict between process compliance and delivery responsibility.
Management should therefore ask two questions:
Why was the process bypassed?
What prevented the approved process from meeting the requirement?
This does not remove individual accountability. It ensures that corrective action addresses the real cause.
Procurement compliance becomes more sustainable when controls are combined with practical processes, responsive support and accessible purchasing channels.
How Can Medium-Sized Companies Reduce Maverick Buying?
Medium-sized companies can reduce maverick buying through focused governance without introducing an oversized corporate procurement model.
A pragmatic approach may include:
- creating transparency over spend and suppliers
- identifying recurring purchases and fragmented categories
- establishing framework agreements for suitable requirements
- defining clear approval thresholds
- simplifying purchasing routes for standard requirements
- assigning responsibilities between procurement, finance and business functions
- monitoring a small number of relevant KPIs
The procurement model should reflect the size, structure and complexity of the organisation.
A clear procurement strategy can align purchasing decisions with commercial priorities, supplier structures and risk requirements.
Operational and strategic responsibilities also need to work together. Operational and strategic procurement perform different roles, but both are essential for consistent control. Operational procurement supports reliable daily processes, while strategic procurement develops contracts, categories and supplier structures.
A Practical Action Plan for Reducing Maverick Buying
A structured improvement programme should begin with the organisation’s actual purchasing behaviour.
1. Assess the Current Situation
Map how requirements arise, which purchasing routes are used and where the process is bypassed. Include procurement, finance, business functions and operational users.
2. Review Spend and Process Data
Analyse purchase orders, invoices, suppliers, contracts and procurement system data. Focus on invoices without purchase orders, off-contract expenditure and purchases outside approved systems.
3. Identify the Main Causes
Distinguish between limited awareness, unsuitable processes, poor system usability, unclear responsibilities and deliberate non-compliance. Different causes require different actions.
4. Update the Procurement Policy
Create understandable rules, proportionate approval thresholds and clear exception procedures. Involve the relevant business functions before implementation.
5. Simplify the P2P Process
Remove unnecessary steps and design approvals according to value and risk. Ensure that common requirements can be purchased efficiently.
6. Consolidate Suppliers and Contracts
Review which suppliers are genuinely required. Improve contract coverage and make preferred supply routes easier to access.
7. Engage Business Functions
Explain the purpose of the changes rather than communicating rules alone. Use operational feedback to improve purchasing routes.
8. Define Relevant KPIs
Select a focused set of measures covering contract use, purchase order compliance, supplier numbers, system adoption and exceptions.
9. Review Implementation Regularly
Monitor results, investigate recurring deviations and adapt processes where necessary. Reducing maverick buying is an ongoing procurement management responsibility, not a one-off compliance exercise.
Conclusion
Maverick buying is often not simply a discipline problem.
Uncontrolled procurement frequently develops where responsibilities are unclear, purchasing processes are too complex, systems are difficult to use or existing contracts are not accessible.
Clear rules are important, but rules alone are not enough. Organisations also need practical P2P processes, suitable digital purchasing channels, transparent approvals and effective supplier governance.
Sustainable improvement connects procurement organisation, policy, processes, technology, supplier management, performance measurement and communication. The approved procurement route must not only provide control. It must also support the organisation in meeting operational requirements efficiently.
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FAQ
What Does Maverick Buying Mean?
Maverick buying means purchasing goods or services outside an organisation’s approved procurement processes, suppliers, contracts or approval routes. Examples include ordering directly from a non-approved supplier, bypassing a framework agreement or creating a purchase order after a service has already been delivered. Approved and documented exceptions should be assessed separately.
Why Does Maverick Buying Occur?
Maverick buying often results from unclear procurement policies, complex purchasing processes, slow approvals or limited visibility of framework agreements and approved suppliers. Other causes may include decentralised responsibilities, poor procurement system usability and insufficient communication between procurement, finance and business functions.
How Can Maverick Buying Be Prevented?
Organisations can reduce maverick buying by simplifying procurement processes, defining clear responsibilities and providing accessible purchasing channels. Effective measures also include practical procurement policies, proportionate approval thresholds, stronger contract coverage, user-friendly e-procurement systems and regular monitoring of process and contract compliance.
What Role Does a Procurement Policy Play?
A procurement policy defines responsibilities, purchasing routes, approvals and supplier selection requirements. It should also explain how existing contracts are used, which documentation is required and how exceptions are approved. To support compliance, the policy must be understandable, easy to access and practical in day-to-day operations.
How Can Maverick Buying Be Measured?
Maverick buying can be assessed by comparing purchase orders, invoices, suppliers, contracts and procurement system data. Useful indicators include invoices without purchase orders, off-contract expenditure, low preferred supplier usage, new supplier creation, retrospective orders and purchases completed outside approved systems.
Reduce Maverick Buying and Strengthen Procurement Control
Uncontrolled procurement can be reduced sustainably when organisation, processes, systems and responsibilities are assessed together. SJL Management & Consulting supports organisations in developing procurement structures, improving purchasing processes, strengthening supplier management and translating strategic requirements into practical implementation.
Organisations seeking greater spend transparency, a more effective procurement policy, improved P2P processes or stronger procurement governance can review their current position in a non-binding initial discussion.
Where additional leadership or implementation capacity is required, interim management in procurement can support operational stabilisation and structured change.
Contact SJL Management & Consulting to discuss the procurement challenges and priorities within your organisation.