Maverick buying

Maverick buying in the supply management arena is the purchasing outside of standard procurement processes, also known as off-contract buying.

The standard processes always tries to minimize this type of practices, because if an organization use it in an excessive way it has fatal consequences. But in some cases it is necessary to be flexible because you can face the situation where a remote location requires an urgent purchase to avoid to shut down its operation.

To try to recognize this practice, measure it, analyze it and understand the cases and volumes of Maverick buying your organization has, is something you should do.

The main reasons of buying off contract are: buyers prefer a local supplier, an item is required in a hurry, it is thought that you are saving money by purchasing a lower-priced item, or the buyer do not know there is a discount on the standard process.

There are two main types of structure for purchase departments:

  1. Centralized operating structure: where all is executed from this organization and does not enable the participation of other specialized teams that can contribute on specific types of purchases.
  2. Center of excellence organization, that focuses on corporate sourcing strategy, and communications with all the procurement people.

Both have advantages and disadvantages with respect the Maverick buying practices.

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