Maverick Spending
Maverick Spending (also known as rogue spending or tail spend) refers to purchases made outside established procurement processes, policies, or contracts. These unauthorized or non-compliant transactions bypass negotiated agreements and control mechanisms designed to optimize organizational spending.
Common causes of maverick spending include:
- Cumbersome procurement processes
- Lack of awareness about existing contracts
- Insufficient contract coverage for needed items
- Emergency or rush purchases
- Decentralized purchasing authority
- Inadequate policy enforcement mechanisms
Advanced procurement platforms combat maverick spending by simplifying purchasing processes, increasing contract visibility, implementing automated controls, and providing intuitive user interfaces that make compliance easier than workarounds.
Related Terms
Cost Per Unit (CPU)
Cost Per Unit (CPU) represents the total expense incurred to produce, store, and...
Learn moreTotal Cost of Ownership (TCO)
Total Cost of Ownership (TCO) is a financial estimate designed to help buyers an...
Learn moreZero-Based Budgeting (ZBB)
Zero-Based Budgeting (ZBB) is a method of budgeting where all expenses must be j...
Learn moreExplore More Supply Chain Terms
Enhance your procurement knowledge with our comprehensive glossary
Browse Full GlossaryReady to streamline your procurement process?
Start your free trial today and see how AuraVMS can transform your vendor management.