Uncontrolled procurement brings risks and higher costs. Find out how to get a grip on the procurement process and create value.
Buying outside the process leads to higher costs and unknown risks.
Sourcing, contracts and invoices in one chain make steering possible.
Without visibility on current spend, every measure is a guess.
"Uncontrolled spend outside authorised suppliers and contracts - also known as maverick buying - can pose significant risks,’ says Sander Veenstra, Solution Consultant. ‘Think higher costs, contract breaches and quality risks. This not only makes the procurement process less efficient, but also less transparent."
In this blog, Sander shares valuable insights and practical solutions to manage spend and create more value for the entire organisation.
"By centralising procurement, organisations can negotiate better prices and benefit from volume discounts."
"Structural relationships with suppliers provide opportunities for joint product development and improved services."
"Without insight into expenditure and supplier performance, it becomes more difficult to make strategic decisions."
"When procurement is fragmented, it leads to additional administrative burdens and fragmented responsibilities internally. Streamlining procurement allows employees to focus on their core business and creates more synergy within the organisation."
Discover how to get a grip on spend that now bypasses the process.
"Structuring procurement processes properly and making the best use of data enables more efficient operations and reduces risks," advises Sander. "Applying smart technology and clear guidelines helps to get a grip on the procurement process, without losing flexibility within the organisation."
"By focusing on collaboration and transparency, all stakeholders can benefit from a streamlined process that contributes to cost savings and long-term value creation," he adds.
“Structuring procurement processes properly and making the best use of data enables more efficient operations and reduces risks.”
"Managing uncontrolled spend starts with a strategic approach and insight," concludes Sander. "By deploying the right processes and solutions, organisations can control costs and risks while working towards sustainable and efficient procurement strategies."
Want to receive more valuable insights on how to optimise procurement processes? Then get in touch or download the whitepaper.
Uncontrolled procurement can lead to financial inefficiencies, quality problems and legal risks, such as breach of contract or failure to meet compliance requirements.
Common signs are unexpected invoices, fragmented procurement channels, discrepancies in contract agreements and a lack of oversight in spending.
Software for procurement and spend analytics helps centralise procurement, monitor spending and enforce compliance.
Make the official procurement process user-friendly, clearly communicate the benefits and ensure management support.