eProcureAI / Platform / Control maverick spend

Use case

People buy around the process
when the process is slower

Maverick spend is almost never defiance. It is arithmetic. Make the compliant route the quickest one and most of it disappears without a single policy reminder.

Nothing gets blocked. Blocking pushes spend onto personal cards where you can see none of it.

Off catalog requestSomebody needs something
The situation

Nobody wakes up planning to breach procurement policy

Ask somebody why they bought outside the process and the answer is almost always the same. They needed it, the proper route was going to take a week, and somebody they knew could get it that afternoon.

That is worth taking seriously rather than treating as a compliance failure. If your compliant path takes twenty minutes to start and a week to finish, and the informal one takes a phone call, people will keep choosing the phone call no matter how many reminders go out.

The usual response is to tighten. Block off catalog purchases, require more approvals, send another policy note. It rarely works, and when it does work it often works badly, because spend moves onto personal cards and expense claims where you have no visibility at all.

The other approach

Make buying correctly the fastest option available. Put the things people actually buy in a catalog at agreed prices. Let low value catalog purchases clear with no approval at all. Keep raising a request to about two minutes.

Then leave the off catalog route open, but route it for review with the reason captured. You get the purchase, the record and the reason, instead of losing all three.

Why it happens

Four reasons, in the order they matter

Reason 1

The compliant route is slower

Twenty minutes of form filling against a two minute phone call. People are optimising their day, not undermining your controls.

FixA two minute request
1
Reason 2

The catalog is too thin

If half of what somebody needs is not in it, they stop checking. A thin catalog quietly teaches people to go around it.

FixLoad what people actually buy
2
Reason 3

Approval is required for everything

Requiring sign off on a box of pens tells people the process is not calibrated, and they treat the rest of it accordingly.

FixNo approval below a threshold
3
Reason 4

Nobody sees the consequence

Off process purchases surface at year end, if at all. By then the conversation is archaeology rather than a decision.

FixLeakage visible by category
4
What changes

Three things, none of them a rule

Buying correctly becomes the fast option

Catalog items at agreed prices, with no approval needed under a threshold you set. For most everyday purchases the compliant route is now genuinely quicker than asking somebody.

  • Catalog carries the negotiated price
  • No approval needed below your threshold
  • Request takes about two minutes
  • The informal route stops being faster
Catalog purchaseLive
ItemFrom the catalog
PriceContracted
Approval neededNone below threshold
TimeAbout two minutes
Faster than askingWhich is the whole point

Off catalog is reviewed, never refused

People still need things nobody anticipated. Those requests go through with the reason captured, so you keep the purchase, the record and the explanation.

  • Off catalog requests route for review
  • The reason is captured on the request
  • Nothing is blocked outright
  • Repeat requests reveal catalog gaps
Off catalogLive
ItemNot in the catalog
RouteReview
ReasonCaptured
BlockedNo
VisibleYes
Kept in the systemRather than pushed outside it

Leakage becomes a number

Buying from a contracted supplier at non contracted prices is the version that hides best, because the supplier name on the report looks correct.

  • Off contract purchases identified by category
  • Price premium calculated against the agreement
  • Transactions attached so it can be checked
  • Feeds the next negotiation with evidence
Category leakageLive
CategoryIT peripherals
Contracted supplierNot used
PremiumCalculated
EvidenceTransaction level
Visible by categoryNot discovered at audit
Where leakage hides

Five patterns, easiest to hardest to spot

The first two are obvious once you look. The last three are the ones that survive for years.

PatternWhat it looks likeHow it is spotted
Entirely new supplierA name nobody recognises appearing on invoicesObvious in the supplier list, easy to challenge
Personal card and expensesPurchases appearing as reimbursements rather than ordersVisible when procurement and expense data are compared
Contracted supplier, wrong priceThe right name on the invoice at the wrong ratePrice variance against the agreement, by category
Right supplier, wrong itemBuying an item outside the agreed catalog from an approved supplierOff catalog flag on the request
Split purchasesSeveral smaller orders staying below an approval thresholdRepeat purchases from the same requester over a short window

The last one is worth watching deliberately, because it usually means a threshold is set at a level that does not match how people actually buy.

Making the compliant path fastest

Six changes that shift behaviour

Catalog

Load what people actually buy

Start with the fifty items that account for most requests. Anything missing is a reason to go around the process.

Start withThe common fifty
Threshold

Let small things through

Below a figure you choose, catalog purchases need no approval. This single change moves more behaviour than any policy note.

EffectLargest single shift
Mobile

Let people raise from anywhere

A request that needs a desktop gets postponed, and postponed requests become phone calls.

WhereOn a phone
Speed

Keep the form short

Six fields, most of which remember themselves. Every extra field is an argument for the informal route.

FieldsSix
Review

Never block outright

Blocking moves spend somewhere invisible. Reviewing keeps it in the system with a reason attached.

BlockedNever
Grow

Follow the off catalog list

Items requested off catalog repeatedly are telling you exactly what to add next.

GuideWhat people ask for
Who does what

The short version of everyone's job

You cannot police your way out of maverick spend. You can out compete it on speed.

What people do

Pick from a list, or explain why they cannot. Neither takes long.

The human partLive
RequesterPicks from the catalog
RequesterOr explains why not
ProcurementReviews off catalog
ProcurementAdds what keeps coming up
Two minutesOr a short explanation

What eProcureAI does

Applies the price, routes the exception and keeps score by category.

The automatic partLive
Apply contracted priceFrom the catalog
Skip approvalBelow your threshold
Route off catalogFor review
Flag price varianceAgainst the agreement
Report leakageBy category
Behaviour shiftsWithout a policy campaign
0to raise a compliant request
0needed below your catalog threshold
0off catalog is reviewed instead
0leakage reported with the premium calculated
FAQ

Questions people actually ask

Should we just block off catalog purchases?
We would advise against it. Blocking moves spend onto personal cards and expense claims, where you have no visibility, no contracted pricing and no audit trail. Reviewing keeps the purchase inside the system with a reason attached.
How big does the catalog need to be before this works?
Smaller than most people expect. Fifty to a hundred lines usually covers the majority of repeat requests. Start there and let the off catalog requests tell you what to add.
What threshold should catalog purchases clear without approval?
It depends on your risk appetite, though most teams land somewhere that covers everyday consumables. The test is whether requiring approval on that amount is genuinely useful or simply habit.
How do we spot buying from a contracted supplier at the wrong price?
Price variance against the agreement, reported by category. This is the pattern that hides best, because the supplier name on the report looks entirely correct.
What about people splitting purchases to stay under a threshold?
Repeat purchases from the same requester over a short window are visible. When it happens regularly it usually means the threshold is set below how people actually buy, which is worth fixing directly.
Will this work without a policy campaign?
In most cases yes, and that is rather the point. When the compliant route is the quickest one, behaviour shifts without anybody being told to change.
How do we measure whether it is working?
Spend under management and the share of purchases going through the catalog. Both are visible monthly rather than argued about annually.

Bring a category you suspect is leaking

We will show what the leakage looks like when the transactions behind it are attached.

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Related: All solutions and Catalog