The term “maverick buying” refers to uncontrolled procurement activity within companies that occurs outside of established purchasing guidelines. This phenomenon is also known as “wild buying” and can lead to significant losses in efficiency and profitability. Maverick buying occurs when employees—usually without malicious intent—procure goods or services independently, without consulting the purchasing department or contrary to company policy.
In this blog post, we will explore why maverick buying is a problem for companies and how you can identify and effectively prevent it in the future.
Before we delve deeper into the issue, you should understand its scale. A recent study by the Leipzig University of Applied Sciences (HTWK Leipzig) shows that the maverick buying rate in Germany averages 25.6 percent. This means that more than a quarter of all orders are placed without involving the purchasing department.
Globally, the situation is even more dramatic: industry studies show that maverick buying can account for up to 80 percent of a company’s total procurement volume. Particularly in indirect procurement, the off-contract share averages 29 percent, resulting in significant cost increases.
The financial impact is considerable: For every euro spent outside of contracts, an average of 12 to 18 percent incurs additional costs. In large companies, 20 percent of executives view maverick spending as a very challenging or difficult problem.
Maverick buying can have various causes. The root of the problem usually lies in flawed business processes and employee misconduct. The most common reasons include:
Compliance poses a particular challenge in German medium-sized companies. According to a study by the procurement consultancy Kloepfel Consulting, 71.5 percent of the managers surveyed see risks from violations of laws and guidelines in procurement. Despite this high awareness of the problem, 75 percent of all companies with up to 200 employees have no compliance officer at all.
The digitalization lag of many German companies significantly exacerbates the maverick buying problem. While internationally leading companies have already automated 70 percent of their procurement processes, many German businesses are still lagging behind. This leads to cumbersome, manual processes that tempt employees to circumvent them.
The negative consequences of maverick buying can be multifaceted. Primarily, it leads to a fragmentation of purchasing volume across various channels and suppliers. This makes purchasing processes less efficient and eliminates centralized control over procurement. This, in turn, impacts the company’s cost efficiency and its stakeholder relationships (for example, with customers or existing suppliers). The main risks are as follows:
Detecting maverick buying is not always easy. Especially in larger companies, it can take some time before irregularities are identified. By proactively implementing measures to detect and prevent maverick buying, companies can improve the financial stability, efficiency, and compliance of their procurement processes. Effective preventative measures include, for example:
Digitizing procurement processes is one of the most effective methods for combating maverick buying. Companies implementing digital procurement solutions can reduce their procurement costs by up to 30 percent and increase efficiency by 40 percent. Automation eliminates many of the friction points that tempt employees to circumvent official processes.
Modern spend analytics tools can identify maverick buying in real time and help companies recognize savings opportunities 3 to 5 times faster than with traditional methods. These systems automatically analyze spending patterns and alert the procurement team to deviations from established guidelines.
E-procurement systems reduce transaction costs by up to 80 percent and can automate up to 70 percent of procurement processes. User-friendly catalogs and simplified ordering processes significantly reduce the temptation for maverick buying.
Strategic supplier management can significantly reduce maverick buying. By building strong supplier relationships and providing attractive, easily accessible catalogs, companies reduce the incentive for impulsive purchases. Studies show that strategic supplier relationships can improve negotiation outcomes by 15 to 25 percent.
By reducing the number of active suppliers and focusing on strategic partners, companies can negotiate better terms while simultaneously reducing complexity. This makes it easier for employees to find and utilize the right suppliers.
Implementing KPI-based evaluation systems for departments can help promote compliant behavior. Departments that consistently follow purchasing guidelines can be rewarded with appropriate incentives.
German companies are under increasing pressure to meet compliance requirements. The Supply Chain Due Diligence Act (LkSG) and other regulations make it even more important for companies to design their procurement processes in a transparent and controlled manner. Violations can result in fines of up to €8 million or 2 percent of global annual turnover.
Building a strong compliance culture starts at the top of the company. Leaders must model and communicate the importance of compliant purchasing behavior. Without this top-down support, even the best technical solutions will be ineffective.
To measure the success of anti-maverick buying measures, companies should establish specific KPIs:
Aberdeen Strategy & Research shows that compliant procurement achieves average cost savings of 22 percent compared to non-compliant procurement. These figures underscore the importance of continuous monitoring and ongoing optimization of procurement processes.
The simplest and fastest way for you to avoid maverick buying and professionalize your purchasing process is to use FACURA. With FACURA, you create transparency and ensure that your departments always have an overview of the purchasing volume. This helps you avoid maverick buying and simultaneously significantly reduces workload and process costs.
Set up FACURA as a supplier in your ERP system once and completely without interfaces or integrations, and generate your orders clearly and easily as a collective order in the future – at the best conditions.
The advantages of using FACURA for your internal departments are numerous.
Standardized ordering eliminates the need to constantly create new or separate supplier profiles for individual orders. It also eliminates the time-consuming process of coordinating or searching for alternative suppliers.
Furthermore, with FACURA you avoid creating your own receipts and always order in accordance with your purchasing process. You no longer need to worry about orders without invoices or private expenses. With FACURA, all orders are processed with a valid invoice without exception. Thanks to standardized invoices for your online shop orders, the purchasing process is further simplified.
Maverick buying is a complex problem that requires both technical and cultural solutions. The combination of digital tools, clear processes, strategic supplier management, and a strong compliance culture is key to success.
Companies that proactively combat maverick buying can not only achieve significant cost savings but also strengthen their long-term competitiveness. In a time when every euro counts, companies simply can no longer afford reckless purchases.
Investing in modern procurement solutions like FACURA not only pays off through direct cost savings, but also lays the foundation for a future-proof, digital procurement strategy. The first step is often the most important – start analyzing your procurement processes today and identify areas with maverick buying risk.
