Rogue Spending in your Company?
Posted on 24th July 2018 at 09:33
Rogue spend could cost a business in the way of lost savings or opportunities not realised.
What is considered to be Rogue Spend?
This type of spend is when employees circumnavigate the formal process (raising requisition, have the spend authorised and then converted into a purchase order). It may be because they don't like the contracted supplier; it might because they find the process too cumbersome; it might be because they weren't aware that there was a process to follow; it might be simply because they can and your ERP system allows them to.
This type of spend will not stop until you have put in place appropriate process, that are clear, simple and communicated to all employees. Your ERP system can have access blocks put in place or spend approval limits that will drive the right kind of working. It's about making it harder to do it the wrong way.
By making it easier to follow the correct process, employees are more likely to follow it.
Pro-Outsourcing can help you to not only identify rogue spend within your business but also work with you to devise a process that stops this from occurring. #roguespend #cost #process #procurement #maverick #spend
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