Uncontrolled Spend Capture Flashcards
What is uncontrolled spend?
Unauthorized or unmanaged purchasing activities outside established procurement processes
What are the two primary categories of uncontrolled spend?
- Maverick spending
- Tail spend
Define maverick spending
When employees bypass approved procurement channels due to perceived inefficiencies or urgent needs
Define tail spend
Low-value, high-volume transactions that typically represent 20% of total spend but consume 80% of procurement resources
What percentage of potential savings do companies lose due to maverick spending?
10–20%
What is a significant challenge identified by 91% of procurement leaders?
Maverick spending
List some financial consequences of uncontrolled spend
- Missed volume discounts
- Inefficient resource allocation
- Audit penalties
What percentage of companies attribute spend management challenges to human error?
29%
What are the operational impacts of uncontrolled spend?
- Fragments supplier relationships
- Reduces negotiation leverage
- Diverts 15–20% of procurement time to compliance issues
What primary driver contributes to uncontrolled spend?
Absence of clearly communicated procurement policies
What percentage of companies face employee resistance to procurement policy adherence?
69%
What role do cultural factors play in uncontrolled spend?
Departments with historically autonomous spending practices often resist centralized oversight
How do legacy procurement systems exacerbate uncontrolled spend?
They lack integration with accounts payable and ERP platforms
What percentage of organizations using outdated software experience maverick spending rates exceeding 15%?
44%
What is a best practice for mitigating uncontrolled spend?
Mandating purchase orders (POs) for all transactions
What is the effect of enforcing purchase orders according to Procurify’s 2025 data?
Reduces maverick spending by 40% within six months
What is the purpose of preferred supplier lists (PSLs)?
Contracting with vetted vendors for common categories to enable volume discounts
Fill in the blank: Implementing hierarchical approval workflows based on _______ prevents unauthorized high-value purchases.
transaction size
What is the benefit of regular procurement audits?
Identifying policy gaps and maverick spend hotspots
What technology can automate spend analysis?
AI-driven classification tools
What are the key features of automated procure-to-pay (P2P) platforms?
- Guided buying interfaces
- Real-time budget dashboards
- AI-powered invoice matching
What is the effect of guided buying interfaces in P2P systems?
Reduces rogue spend by 65%
What do modern expense management platforms like Capture Expense do?
Embed policy enforcement into payment methods
What is an example of a dynamic card control?
- Merchant category blocks
- Real-time alerts
- Auto-generated expense reports
