Maverick Spend Explained: Causes, Risks and How Procurement Can Reduce It
Maverick spend is purchasing that happens outside an organisation’s approved procurement process, contracts or buying channels. It is usually a symptom of a process that is hard to use, unclear or poorly matched to the buyer’s real need—not simply a discipline problem.
TL;DR
Define maverick spend precisely before measuring it: off-contract, no-PO, unapproved supplier and late-approved spend are different problems.
Investigate why users bypass the route before tightening controls.
Reduce it by making approved suppliers, contracts and purchasing channels easy to use.
What counts as maverick spend?
Organisations use the phrase differently, so the first job is to define it. It can include purchases from an unapproved supplier, spend outside a negotiated contract, an invoice without a required PO, or a commitment made before the required approval. Each needs a different response.
A useful measure separates the behaviour from the root cause. A purchase might be off-contract because the preferred supplier had no availability, because the requester could not find the contract, or because the approved process did not support an urgent operational need.
Why maverick spend happens
Poor discoverability: employees cannot easily find approved suppliers, catalogues or contracts.
Slow or unclear process: the normal route feels slower than buying directly.
Weak data: supplier, contract, catalogue or pricing information is missing or unreliable.
One-size-fits-all controls: routine low-risk purchases face the same friction as complex high-risk decisions.
Legitimate exceptions: an urgent or specialist requirement has no workable authorised route.
Maverick spend vs tail spend
Term | What it describes |
|---|---|
Maverick spend | Spend that bypasses the approved procurement route, supplier or contract |
Tail spend | A fragmented set of smaller purchases, suppliers or categories that may be hard to manage |
Tail spend can be compliant, and maverick spend can be high value. Do not assume they are the same issue.
How to reduce maverick spend
Define the behaviour. Agree what you will count and which team owns the measure.
Find the journey failure. Look at the point where users leave the approved path.
Improve the front door. Guide requests to the correct supplier, contract, catalogue or procurement route.
Segment controls. Apply an appropriate level of review for value, risk and category.
Design exceptions. Give urgent or non-standard needs a clear, documented route.
Review outcomes. Track whether the change improves use of the approved route and reduces avoidable exceptions.
What not to do
Do not treat every no-PO invoice as intentional non-compliance.
Do not increase approval layers before finding the reason for the bypass.
Do not punish users for using a process that the organisation has made impossible to navigate.
Do not claim savings from compliance without connecting the behaviour to a real contracted or controlled outcome.
Frequently asked questions
Is maverick spend always bad?
It signals a control or process gap, but the response should be proportionate. Some purchases may be legitimate exceptions; the organisation needs a route to document and approve them.
Who owns maverick spend?
Procurement usually owns the intervention, but finance, business leaders, budget owners and system owners all influence the data, controls and user experience that determine the outcome.
Can P2P software eliminate maverick spend?
No. Software can make the approved route easier and show where spend happens, but it cannot resolve unclear policy, missing supplier options or poor process design on its own.
Continue exploring
Use this with the forthcoming procure-to-pay guide, purchase-order guide and procurement policy guide.