What is maverick spend in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

SAP Term: maverick spend

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: The money spent by organizations on buying products individually, bypassing approved methods of the purchasing department. By spending money in this way, organizations cannot take advantage of the cost savings and greater volume discounts that could be available.

Smart SAP Assistant

• Key Concepts: 
  Maverick spend is a term used to describe the purchase of goods or services outside of the company’s established procurement process. It is often done without the approval of the procurement department and can lead to higher costs and inefficiencies. 
  
  How to use it: 
  In SAP SRM-Sourcing and Contracting, maverick spend can be managed by setting up a system of checks and balances that requires approval from the procurement department before any purchase is made. This ensures that all purchases are made in accordance with company policy and that any potential savings are realized. 
  
  Tips & Tricks: 
  It is important to ensure that all employees are aware of the company’s procurement policies and procedures. This will help to reduce the amount of maverick spend that occurs. Additionally, it is important to have a system in place that allows for quick and easy approval of purchases from the procurement department. 
  
  Related Information: 
  Maverick spend can be managed through the use of SAP SRM-Sourcing and Contracting. Additionally, there are other tools available such as e-procurement systems, which can help to streamline the purchasing process and reduce maverick spend.