Maverick Spend: What It Is And How To Control It

In the ever-evolving landscape of corporate Procurement,

optimizing spend is a top priority for organizations looking to control costs and boost efficiency. However, Maverick Spend—purchases made outside established procurement channels—remains a persistent challenge. These off-process transactions inflate costs, weaken supplier relationships, and drain resources through administrative overhead.

Fortunately, ServiceNow’s Source-to-Pay (S2P) provides a comprehensive solution to eliminate maverick spend while streamlining procurement operations. With its user-friendly interface, automation capabilities, and real-time visibility, S2P empowers organizations to reduce unmanaged spend by as much as 60%—unlocking significant cost savings and operational benefits.

The Maverick Spend Challenge

Maverick spend arises when employees bypass standard procurement channels, often due to two key issues:

Complex Processes: Employees find traditional systems cumbersome and time-consuming for simple orders.
Urgency: Employees make out-of-process purchases to meet immediate needs.

While these actions may seem justified, they undermine the organization’s strategic sourcing efforts, leading to:

Higher Costs: Purchases at non-negotiated rates drive up expenses.
Diluted Supplier Relationships: Fragmented spending reduces the organization’s leverage with suppliers.
Administrative Burdens: Processing out-of-channel invoices consumes valuable time and resources, often costing hundreds of dollars per transaction.

Addressing this challenge requires more than policy enforcement. It demands a procurement system that’s simple, transparent, and fast—one that employees naturally gravitate toward.

How ServiceNow Source-to-Pay Transforms Procurement

ServiceNow’s S2P platform is purpose-built to combat maverick spend by simplifying and automating procurement workflows. From employee requests to invoice payments, S2P ensures compliance without sacrificing convenience or speed. Key benefits include:

Simplified Procurement: Employees gain an intuitive, Amazon-like ordering experience, reducing the temptation to bypass established processes.
Real-Time Visibility: Procurement teams can monitor spend trends, identify compliance gaps, and intervene proactively.
Data-Driven Decision Making: Analytics uncover actionable insights to optimize supplier performance and negotiate better terms.
Targeted Workspaces: Role-specific tools streamline tasks for procurement, sourcing, and payables teams, ensuring efficiency and focus.

By combining automation, visibility, and ease of use, S2P minimizes maverick spend while enhancing the overall procurement experience.

Unlocking Strategic Value

Organizations that eliminate maverick spend through ServiceNow S2P gain far-reaching benefits, including:

Cost Savings: Consolidated spend under management leads to lower prices and reduced administrative overhead.
Enhanced Supplier Relationships: Increased compliance enables stronger partnerships and better negotiated terms.
Improved Efficiency: Procurement teams can focus on high-value activities rather than chasing non-compliant transactions.

Achieve Faster ROI with Expert Implementation

To maximize the benefits of ServiceNow Source-to-Pay, you need a partner who understands your unique procurement challenges.

With over 25 years of procurement and strategic sourcing expertise, Outcome Driven Solutions (ODS) ensures a seamless S2P implementation tailored to your organization’s needs. From system configuration and process optimization to employee training, ODS accelerates adoption and delivers a best-practice solution.

By partnering with ODS, you’ll reduce maverick spend faster, achieve measurable cost savings, and unlock more substantial ROI – while empowering your team with a streamlined, data-driven procurement function.