What is Maverick Spend Ratio in SAP SRD-SRM-ANA - SRM-Analytics?

SAP Term: Maverick Spend Ratio

• Component: SRD-SRM-ANA

• Component Name: SRM-Analytics

• Description: A key performance indicator KPI that shows the percentage of the company's spend that refers to purchases that are not controlled by the purchasing department versus the total purchasing value. A manager can use this KPI to analyze the money spent by the company on buying products individually per supplier, bypassing approved methods of the purchasing department.

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• Key Concepts: 
  Maverick Spend Ratio is a metric used to measure the amount of spending that is done outside of the company’s approved purchasing channels. It is calculated by dividing the total amount of maverick spend by the total amount of spend for a given period. This metric is used to identify areas where there may be opportunities for cost savings or process improvements. 
  
  How to use it: 
  The Maverick Spend Ratio can be used to identify areas where there may be opportunities for cost savings or process improvements. It can also be used to track progress over time and compare performance against industry benchmarks. Additionally, it can be used to identify areas where additional training or education may be needed in order to ensure that all employees are following the company’s purchasing policies and procedures. 
  
  Tips & Tricks: 
  When calculating the Maverick Spend Ratio, it is important to ensure that all maverick spend is included in the calculation. This includes any purchases made outside of the company’s approved purchasing channels, such as through personal credit cards or other non-approved vendors. Additionally, it is important to ensure that all spend is included in the calculation, including any discounts or rebates that may have been applied. 
  
  Related Information: 
  The Maverick Spend Ratio is part of SAP SRM-Analytics, which provides analytics and reporting capabilities for SAP SRM (Supplier Relationship Management). It enables users to analyze supplier performance, identify areas for improvement, and track progress over time. Additionally, it provides insights into supplier risk and compliance, as well as visibility into supplier performance metrics such as on-time delivery and quality ratings.