Topic
Maverick Spending
Instructions
Within the parameters of Supply Management we understand there are many sourcing strategies and opportunities in the effort to procure goods and services.
Maverick spending flies in the face of this.
Read this article and formulate an opinion on why maverick spending could be positive or negative. Use real world examples to substantiate your position. Feel free to use your own or these: a small business office setting and/or a major hollywood film production.
http://spendmatters.com/2015/
Answer preview
Maverick spending has been identified as a problematic occurrence within businesses as it can create a purchasing crisis. This would occur when there are different departments within an organization that are undertaking purchasing and hence creating the challenge for the accounting department in the process of reconciling invoices. As a result of invoices being issued from different departments within an organization, control of the expenses that the organization is undertaking becomes relatively difficult since some of the elements that cause the maverick spending are critical for departmental operation.
Word count: 305