Work out maverick spend percentage instantly with clear inputs, formula shown and shareable results.
Maverick spend is buying outside contracted suppliers, and its cost is the price premium paid on that spend. Because the premium is embedded in the price paid, the leakage is the premium divided by one plus the premium — not the premium applied to the spend.
Maverick spend
Maverick % = Off-contract spend / Total category spend x 100
Value leakage
Leakage = Off-contract spend x Premium / (1 + Premium)
Usually because the compliant route is slow, the catalogue is incomplete, or the requisitioner does not know a contract exists. It is rarely deliberate.
Making the compliant channel the easiest one: complete catalogues, fast approval, and blocking non-catalogue orders where a contract exists.