Maverick Spend Percentage

Measures the percentage of procurement spend that occurs outside of approved processes or contracts, often resulting in unapproved purchases.

What it Measures ?

Measures how much spend goes outside approved processes.

Relevant StakeHolders

Compliance Teams, Procurement Managers

Why it Matters ?

Reduces non-compliant spend across procurement.

In-depth Use Case / Real-world Example

A manufacturing company producing steel beams tracks Maverick Spend to determine how much of its procurement budget is being spent outside of approved supplier contracts or purchase processes. For example, if the company spends ₹100 crores on procurement, but ₹10 crores is spent on purchases not made through the approved procurement process, the Maverick Spend Percentage is 10%. High Maverick Spend indicates inefficiencies and risks in the procurement process.

Sample Formula