Introduction
Maverick spending is becoming a difficult problem for procurement and supply chain leaders, particularly in industrial businesses where a missing replacement part can interrupt production.
A technician facing a malfunctioning machine does not have much time to navigate complicated purchasing systems. If locating a replacement component requires multiple screens, confusing product descriptions and lengthy approval processes, buying from an unapproved supplier may seem like the quickest solution.
One purchase may look insignificant. Multiply that behavior across hundreds of employees, several facilities and thousands of transactions, however, and the financial consequences become harder to ignore.
This is the challenge explored by SDI in its October 14, 2026 article, General ERPs vs. Purpose-Built Procurement Platforms to Reduce Maverick Spending. The company argues that conventional enterprise resource planning (ERP) systems are valuable for managing broad business operations but can struggle with the unpredictable purchasing requirements of maintenance, repair and operations (MRO) teams.
SDI’s central recommendation is to combine the financial control of an existing ERP with a specialized procurement platform that makes approved purchasing easier.
The idea raises an important question for modern supply chains: should businesses replace their existing enterprise systems, or improve the purchasing experience around them?
Background and Context: What Is Maverick Spending?
Maverick spending describes purchases made outside an organization’s approved procurement policies, supplier agreements or purchasing channels.
It can happen intentionally, but it is not always the result of employees deliberately ignoring company rules.
In many cases, the problem begins with a process that does not support the way people work.
Consider a manufacturing facility that needs a replacement bearing to repair a production machine. The company’s procurement department has negotiated supplier agreements, but the part is difficult to locate in the internal catalog. The purchasing system uses an unfamiliar product description, and approval may take several days.
The maintenance team has two choices: wait for the formal process or find the component through a local supplier.
When production is at risk, the second option can become tempting.
This is how maverick spending can develop, even when employees have no intention of undermining procurement policy.
Common examples include:
- Purchasing from suppliers that have not been approved.
- Buying products outside negotiated supplier contracts.
- Using corporate purchasing cards instead of established procurement channels.
- Placing emergency orders without following normal approval procedures.
- Ordering duplicate parts because existing inventory cannot be located.
- Purchasing from alternative vendors because approved catalog information is incomplete.
Maverick spending should not be confused with all tail spending.
Tail spending refers to the large number of smaller or less frequent purchases that can be spread across many suppliers. These purchases may be completely legitimate and compliant. Maverick spending, by contrast, describes whether the purchasing process or policy was bypassed.
The two categories can overlap, but they are not interchangeable.
Latest Update: SDI Questions Whether Traditional ERP Procurement Can Keep Up
In its October 14, 2026 article, SDI compares general ERP procurement modules with purpose-built electronic procurement platforms.
The article focuses particularly on MRO purchasing, where demand is often unpredictable and individual requirements can change quickly.
SDI identifies several reasons why traditional ERP procurement workflows may create problems for maintenance teams.
The challenge of unpredictable purchasing demand
Direct materials used in manufacturing are often connected to production schedules, bills of materials and forecasting processes.
MRO requirements are different.
A maintenance team might need a replacement motor, sensor, bearing or electrical component because equipment has unexpectedly failed. The purchase may be urgent, and the required part may not appear in a standard purchasing forecast.
That makes MRO purchasing more difficult to manage through processes designed primarily around planned procurement.
Complicated product searches
Another issue is product data.
A technician may search for a part using a familiar abbreviation or manufacturer reference. The company’s ERP catalog may contain the same product under a different description.
For example, a search for a bearing using a short part description might not return a result because the internal catalog uses a standardized technical name.
The item may be available, but the employee cannot find it quickly.
SDI argues that this kind of catalog friction can encourage off-contract purchasing.
Slow approval processes
Procurement controls are important, but excessive delays can create operational problems.
If a replacement component is needed to restore production, a slow approval process can encourage employees to bypass the official purchasing route.
The result is a conflict between two business priorities:
- Procurement wants spending to remain visible, controlled and compliant.
- Maintenance teams want to restore equipment as quickly as possible.
SDI’s argument is that companies should not have to choose between these objectives.
Read the original article: General ERPs vs. Purpose-Built Procurement Platforms to Reduce Maverick Spending.
Expert Analysis: Why Purpose-Built Procurement Platforms Are Gaining Attention
The debate is not necessarily about choosing one software system over another. It is about giving employees a purchasing process that is both convenient and controlled.
1. General ERP systems have a different primary purpose
ERP platforms such as SAP, Oracle and Microsoft Dynamics support multiple areas of enterprise operations.
Depending on the implementation, they can manage:
- Financial accounting.
- Inventory records.
- Supplier information.
- Purchase orders.
- Production planning.
- Human resources.
- Business reporting.
They provide a central system of record for important business information.
However, managing an enterprise’s financial and operational data is not identical to helping a maintenance technician quickly locate a replacement part.
An ERP procurement module may support the required purchasing controls but still offer an experience that is difficult for some operational users.
This distinction is central to SDI’s argument.
2. Purpose-built eProcurement platforms focus on the purchasing experience
Electronic procurement platforms, commonly called eProcurement systems, are designed to support digital purchasing processes.
Depending on the software, they can provide searchable supplier catalogs, guided buying, approval workflows, purchase tracking and integration with enterprise systems.
For industrial companies, specialized platforms can also support MRO-specific requirements.
SDI highlights its own ZEUS eProcurement platform as an example. The company describes features including:
- Mobile-friendly purchasing.
- Product search and item identification.
- Catalog management.
- Automated approval routing.
- Supplier integration.
- Purchasing visibility.
- Integration with existing enterprise systems.
These capabilities are presented by SDI as part of its commercial solution. Their effectiveness will depend on implementation, data quality, integration and employee adoption.
The wider principle is more important than any individual product: the approved purchasing channel should be easier to use than the workaround.
3. Integration can be more practical than ERP replacement
Replacing a large enterprise system can involve significant cost, technical work and organizational disruption.
For many companies, a more practical approach may be to add specialized procurement technology while keeping the existing ERP as the financial system of record.
SDI describes ZEUS as a platform that can integrate with enterprise systems such as SAP, Oracle, Coupa and IBM Maximo through APIs and cXML PunchOut connections.
The purpose of this arrangement is to give maintenance teams a simpler purchasing interface while keeping purchasing information connected to the company’s wider financial and operational systems.
A well-designed integration should allow relevant information to move between platforms, including:
- Purchase requisitions.
- Approved supplier information.
- Product and catalog data.
- Purchase orders.
- Pricing information.
- Approval status.
- Invoice and transaction records.
The exact integration capabilities depend on the software products and implementation.
4. Better product data can prevent unnecessary purchases
Technology alone cannot solve every procurement problem.
If a company has duplicate supplier records, inconsistent product descriptions and outdated catalog information, a new purchasing interface may simply make those problems easier to access.
This is why master data management matters.
A standardized MRO catalog can help employees identify products more accurately, compare available suppliers and locate parts already held in inventory.
For large organizations operating across several facilities, consistent product data can also improve inventory visibility and purchasing coordination.
SDI emphasizes data cleansing and catalog standardization before implementing its procurement platform.
ERP vs. Purpose-Built Procurement Platform: What Is the Difference?
| Evaluation area | General ERP procurement module | Purpose-built eProcurement platform |
|---|---|---|
| Primary purpose | Broad enterprise resource and financial management | Specialized purchasing and procurement workflows |
| Product search | Depends on ERP configuration and catalog quality | Can offer specialized search and product identification |
| MRO requirements | May require additional configuration | Can be designed around industrial purchasing needs |
| Supplier catalogs | Often managed through ERP procurement functions | May support specialized multi-supplier catalog management |
| User experience | Designed for wider enterprise processes | Can prioritize buyers and operational employees |
| Approval workflows | Enterprise procurement controls | Purchasing workflows designed for specific buying situations |
| Integration | Central enterprise system | Often connects to existing ERP and financial systems |
| Best use | Enterprise-wide business records and control | Specialized purchasing experience and execution |
The table describes general differences. Actual functionality varies by vendor, software configuration and implementation.
Broader Implications: Maverick Spending Is a Supply Chain Visibility Problem
Maverick spending is often treated as a procurement compliance issue. But its impact reaches further into the supply chain.
When employees buy outside approved channels, the organization may lose visibility into where money is going, which suppliers are receiving orders and whether products are being purchased at negotiated prices.
That can create several problems.
Supplier fragmentation
A company may already have negotiated favorable prices with preferred suppliers. When different departments purchase similar products from separate vendors, those agreements may lose their value.
The organization also has more supplier relationships to manage, monitor and reconcile.
Inventory duplication
Poor visibility can cause employees to order items that are already available elsewhere within the organization.
A facility may purchase a replacement component without knowing that another location has the same part sitting unused in its storeroom.
Over time, this can increase inventory costs and make stock management more difficult.
Financial reporting challenges
When purchases are made outside established channels, finance teams may have to reconcile transactions across purchasing cards, invoices and different supplier records.
This makes it harder to understand total spending and compare actual purchasing activity with budgets and contracts.
Operational risk
Buying from an unapproved supplier can introduce additional questions about product quality, warranty coverage, delivery reliability and supplier qualification.
That does not mean every alternative supplier is unsuitable. It means purchasing decisions should follow a process that captures the relevant information and approvals.
Amazon Business’s September 2026 guide, Maverick spend: How to find and control it, recommends consolidating purchasing data, comparing transactions with approved contracts and validating potential exceptions before classifying purchases as maverick spending.
That last step is important. A purchase should not automatically be treated as noncompliant simply because it does not match a contract record. Procurement teams need to check whether the transaction was legitimate, whether the contract applied and whether the supplier information was complete.
Internal link suggestion: Link this section to The Tech Marketer’s related article, How to Reduce Maverick Spending in Supply Chain Procurement. It provides a natural internal link for readers interested in the causes and prevention of uncontrolled purchasing.
The Financial Impact: What Uncontrolled Purchasing Can Cost
Maverick spending can affect more than the price of an individual item.
The financial impact may include:
- Loss of negotiated supplier discounts.
- Higher prices from emergency or off-contract purchases.
- Additional freight charges.
- Duplicate inventory purchases.
- Manual invoice reconciliation.
- Increased administrative workload.
- Reduced visibility into supplier performance.
SDI’s October 14 article includes several financial estimates to illustrate the potential scale of the problem.
The company states that MRO purchasing can account for a large share of supplier transactions while representing a smaller share of total spend. It also cites potential price premiums of 15% to 25% for off-contract spot purchases and estimates that maverick purchasing can account for 20% to 40% of indirect purchases in some enterprise environments.
These figures are SDI’s reported estimates and should not be treated as universal industry benchmarks. Actual results vary by industry, purchasing category, company size, contract coverage and how maverick spending is measured.
The company also cites internal processing costs of $75 to $150 for individual purchase orders. Such estimates depend heavily on the organization’s workflow, automation and accounting processes.
For procurement leaders, the practical lesson is to calculate the cost using their own purchasing data rather than applying a general industry estimate.
How Businesses Can Reduce Maverick Spending
A procurement platform can help, but companies should begin by understanding why employees are bypassing the existing process.
The following steps provide a practical framework.
Step 1: Audit historical purchasing data
Start by reviewing transactions across departments, facilities, purchasing cards and supplier accounts.
Look for:
- Repeated purchases from unapproved vendors.
- Transactions outside negotiated contracts.
- Duplicate supplier records.
- Frequent emergency orders.
- Purchases with missing product descriptions.
- Repeated buying of items already held in inventory.
This creates a baseline for understanding the problem.
Step 2: Clean up supplier and product data
Standardize supplier names, product descriptions and inventory records.
For industrial organizations, MRO catalogs should use consistent product identifiers and descriptions so that employees can locate parts accurately.
Where appropriate, include manufacturer part numbers, technical specifications, approved substitutes and supplier information.
Step 3: Make approved purchasing easier
Procurement systems should help employees find what they need without unnecessary complexity.
Useful improvements may include:
- Searchable product catalogs.
- Mobile purchasing interfaces.
- Clear preferred supplier options.
- Pre-negotiated pricing.
- Simplified requisition forms.
- Faster approval workflows for urgent requirements.
The goal is to make the compliant purchasing route the most convenient route.
Step 4: Integrate procurement tools with existing systems
Purchasing information should not become isolated in another software platform.
Connect the procurement system with the ERP and relevant financial applications so that purchase orders, supplier information and transactions can be tracked consistently.
Before implementation, companies should establish which system owns each important record and how information will be synchronized.
Step 5: Monitor performance continuously
Procurement teams should track whether the changes are actually reducing unauthorized purchasing.
Useful metrics include:
| KPI | What it measures |
|---|---|
| Maverick spend rate | Share of addressable purchasing outside approved policies or channels |
| Contract compliance | Share of eligible purchases made through approved agreements |
| Purchase order cycle time | Time taken to move from requisition to purchase order |
| Supplier concentration | How purchasing is distributed across suppliers |
| Duplicate purchase rate | Frequency of repeat purchases where existing stock may have been available |
| Catalog search success | Whether employees can locate the products they need |
| Emergency purchase rate | How frequently urgent or unplanned orders occur |
The definitions should be consistent. For example, a company should not classify every purchase outside a preferred contract as maverick spending if the contract did not cover the item or an approved exception applied.
What Happens Next: The Future of Procurement Technology
Procurement technology is moving toward more connected systems, improved data management and increasingly automated purchasing workflows.
Artificial intelligence may help identify products from incomplete descriptions, recommend suitable suppliers, classify purchasing transactions and detect unusual spending patterns.
However, AI should support rather than replace procurement governance.
A system may recommend a replacement component, but the company still needs to verify technical compatibility, supplier qualification, pricing and approval requirements.
The same applies to automated purchasing. Faster transactions are useful only when they remain within the organization’s purchasing policies and financial controls.
The future of procurement will likely depend on how effectively companies combine three elements:
- Enterprise systems: Maintaining reliable financial and operational records.
- Specialized procurement tools: Making purchasing more accessible to employees.
- Clean data and governance: Ensuring that decisions remain visible, compliant and measurable.
For businesses with large MRO operations, the biggest opportunity may not be another major ERP replacement. It may be improving the way employees interact with the systems they already have.
Conclusion: Better Procurement Starts With Making Compliance Easier
Maverick spending is not always a sign of poor employee discipline. Sometimes, it is a sign that the purchasing process does not work well enough for the people expected to use it.
SDI’s October 14, 2026 article highlights the gap between traditional ERP procurement modules and the fast-moving requirements of industrial maintenance teams.
Its proposed approach is to keep the ERP as the central enterprise system while adding specialized eProcurement technology to simplify purchasing, improve catalog access and strengthen compliance.
That approach will not work automatically. Companies still need clean supplier data, reliable integrations, sensible approval rules and employees who understand the process.
But the underlying principle is straightforward: procurement controls are more effective when they support business operations rather than slow them down.
For supply chain leaders, reducing maverick spending is therefore not just about restricting purchases. It is about creating a purchasing environment where employees can get the right products from the right suppliers, at the right time, with the right level of visibility.
FAQ
1. What is maverick spending in supply chain management?
Maverick spending refers to purchases made outside approved procurement policies, supplier agreements or purchasing channels. It can reduce cost visibility, weaken negotiated pricing and make supplier management more difficult.
2. Why do employees engage in maverick spending?
Employees may bypass official procurement systems because product catalogs are difficult to search, approval processes are slow, approved suppliers cannot meet urgent needs or purchasing policies are unclear.
3. Can an ERP system prevent maverick spending?
An ERP system can support procurement controls, supplier management and purchase approvals. However, its effectiveness depends on configuration, data quality and user experience. Some organizations use specialized procurement platforms alongside their ERP systems to simplify purchasing.
4. What is the difference between ERP and eProcurement software?
ERP software manages broad enterprise processes such as finance, inventory and purchasing. eProcurement software focuses more specifically on digital purchasing workflows, including product catalogs, supplier selection, requisitions and approvals.
5. How can companies reduce maverick spending?
Companies can reduce maverick spending by auditing purchasing data, improving supplier and product catalogs, simplifying approval workflows, offering accessible procurement tools and monitoring purchases against approved policies.
6. What does MRO mean in procurement?
MRO stands for maintenance, repair and operations. It refers to the supplies, spare parts, tools and services required to maintain equipment, facilities and everyday business operations.
7. Does a company need to replace its ERP to improve procurement?
Not necessarily. A company may be able to improve purchasing by integrating a specialized procurement platform with its existing ERP. Whether this is appropriate depends on the ERP’s capabilities, integration options, business requirements and implementation costs.
Sources & References
- SDI, Ron Fijalkowski, “General ERPs vs. Purpose-Built Procurement Platforms to Reduce Maverick Spending.”
Published October 14, 2026.
https://www.sdi.com/resources/blog/general-erps-vs-purpose-built-procurement-platforms-to-reduce-maverick-spending/ - Amazon Business, “Maverick Spend: How to Find and Control It.”
Published September 2, 2026.
https://business.amazon.com/en/blog/maverick-spend - Amazon Business, “Spend Management: What It Is and How to Improve It.”
Published August 11, 2026.
https://business.amazon.com/en/blog/spend-management - SDI, “Tackling Maverick Spend: How Procurement Leaders Can Regain Control.”
Published July 9, 2024.
https://www.sdi.com/resources/blog/tackling-maverick-spend-how-procurement-leaders-can-regain-control/ - Chartered Institute of Procurement & Supply, “Why Now Is the Right Time to Finally Tackle Maverick Spend.”
https://cips-download.cips.org/why-now-is-the-right-time-to-finally-tackle-maverick-spend
