Did the marketing department go on another shopping spree without involving the purchasing department—and waste money in the process? This is a clear case of maverick buying. Stopping maverick buying is not easy, but it is a core task of strategic purchasing. The following tips will help you take back control.
Before you start implementing these tips, ask yourself:
- Are the costs and benefits in proportion?
How high is the savings potential and what efforts do you need to make to achieve it? - Do you have “allies” in the company?
Which important departments in the company support the project? - Is the purchasing department able to take on additional tasks?
Do you have enough employees who can handle the new tasks?
Are employees familiar with the subject matter they will be dealing with? - Are your employees adequately prepared?
For possible criticism?
Are everyone aware of the arguments?
For possible extra work?
Can you answer all these questions with “yes”? Then you’re ready to go:
- 1. Identify meaningful, promising areas of activity!
When does it make sense to handle certain procurement areas through purchasing?
Is the procurement volume large enough?
Does the new procurement area promise success for the purchasing department? - 2. Identify the maverick buyers in your company!
Background: Maverick buyers are often not the actual users of a product or service. For example, the division manager instructs the assistant to book a flight and hotel.
The secretary does as instructed—and makes the booking, without consulting the purchasing department, of course. The result: potential quotas remain unused, and that costs money.
Is it due to dissatisfaction with the performance of the purchasing department?
Are the framework agreements, availability, response times, etc. suitable?
Or are personal interests, a favorite supplier, convenience, or friendly/family relationships behind it? - 4. What to do now:
Analyze your internal customer satisfaction using a questionnaire
(a low response rate is also an answer!)
or through direct surveys in the individual departments
Tip: It is best to appoint a neutral person to get the most honest feedback possible.
Incidentally, this is not something you should do just once. Surveys at regular intervals are helpful for improving the quality of your performance in the long term!
The key question here is:
Do the offers and services provided by the purchasing department meet the customer’s requirements?
Examples:
- Do the framework agreements from which orders are to be placed meet the expectations of the purchaser?
- How accessible is the department?
- Are order processing times optimal?
Win over the internal customers of Maverick Buying!
Organize internal “roadshows” and present the purchasing department and its capabilities. This is particularly important for decentralized locations or newly added business areas that you want to work for in the future. Ideally, you should present a successful project and name the specific savings. Or even better: an internal customer with whom you have successfully completed a project takes over this part and demonstrates the advantages and results of the collaboration.
The key factors for the success of a Maverick Buying project:
- Show your colors and actively approach the departments. Don’t wait for the internal customer to come to you!
- Become the direct point of contact: for questions – this will get your foot in the door
- and for criticism. Because every point of criticism that is addressed will no longer be thrown back at you by other internal customers.
- Create transparency regarding the total costs of the procured product.
- Even if your services may be more expensive, demonstrate and communicate the added value of your work, which makes it cheaper overall.
The key to success: your credibility
- The savings must be verifiable.
- And they must be confirmed by a central authority.
Curbing maverick buying—or even stopping it altogether—is a challenging undertaking and requires a lot of persuasion. However, management and individual departments will thank you for the progress you make.
And if you need support with the project, just get in touch with us!