Most organisations have robust, efficient systems and processes around their revenue generation or their direct spend on raw materials and stock, but few have the same degree of focus around their indirect spend. Employees are often allowed a large degree of freedom to buy what they require, with the main reason being to avoid introducing any controls that result in a delay to the provision of goods or services.

This typically produces a set of significant problems for Finance, with many manual processes and procedures in place, purchases made without authorisation, a subsequent lack of visibility of commitments until an invoice arrives, possible coding errors, and budgets often overlooked until well after the event. This maverick spend can be damaging enough but can be worsened through malicious and fraudulent behaviour which can run unchecked through these gaps.

The Procurement team similarly suffers; they will have negotiated pricing, and perhaps agreed tiered volume contracts with key suppliers, but witness a lack of spend against those contracts as employees continue to buy from unapproved sources at higher prices.