Maverick spend: How much is your company wasting?

Many companies allow employees to make purchases of up to $2,000–$4,000 without going through the procurement department.

At first glance, this might seem efficient—streamlining internal processes and saving time. But have you ever stopped to consider the actual impact of this practice?

Research shows that uncontrolled, decentralized purchasing can lead to significant financial losses. According to The Hackett Group (https://lnkd.in/dvyZUXtv), organizations lose up to 16% of negotiated savings due to off-contract purchases.

Additionally, APQC (https://lnkd.in/dh7TW8Fn) highlights that decentralized processes greatly increase operational costs and order cycle times, resulting in inefficiencies and waste.

These challenges may seem inevitable—but they’re not.

Supplify has developed an intelligent engine for our requisition module, specifically designed to tackle these issues through artificial intelligence.

How does it work?

1. Automatic Suggestions: Supplify recommends contract-approved products with pre-negotiated prices, ensuring compliance and cost savings.

   
   

2. Lowest Price Priority: If no contract is available, Supplify suggests the most affordable and popular option. You can also configure the system to prioritize other criteria according to your company’s needs.

   
   

3. Intelligent Semantic Search: Even with incomplete data or vague product descriptions, users can easily find the right item. This helps prevent unnecessary or duplicate purchases. In the example image, the requester types only an acronym, and the system recognizes it and links it to registered product descriptions. It also works with synonyms, abbreviations, and variations.

   
   

By implementing this solution, companies significantly reduce uncontrolled spending, improve operational efficiency, and gain full visibility into costs—ensuring every dollar spent aligns with strategic goals. And this is just one module of Supplify.

Want to learn more about how Supplify can help your company save and streamline procurement? Let’s talk!