The DouglasMatrix

10.11.2018

Procurement Analysis Tool: MAVERICK SPEND VS PROCUREMENT CONTROL ANALYSIS

In my experience, Maverick spend has been undermining Procurements' output for a long time. Mainly in countries where Procurement hasn't had a proper and professional development, recognition and positioning, internal customers "play being expert buyers", with no proper training to do so, based only on their "technical expertise" on the category given to manage. Furthermore, the business' top management team seldom recognizes the potential opportunities being missed by allowing internal third parties to manage and negotiate categories under no strategic procurement standards or processes. These potential opportunities are not only related with savings (maybe the most usual Procurement KPI worldwide). In the Procurement field, we all know that our potential surpasses this, since we are able to add value (other than cost) in supply assurance, quality, service, innovation, regulatory or legal guarantee, social responsibility and ecological aspects.

Hence the above, the purpose of the DOUGLAS R Matrix (Maverick spend vs Procurement Control Analysis) is to provide Procurement practitioners and business top management team members with an insight and understanding of the approach definitions, behaviors and risks involved in the analysis of contrasting the involvement of Procurement in the company's spend with the volume of expenditure and/or savings potential and the actions required to achieve an optimal relationship between these two factors.

Here is the DOUGLAS R Matrix ©, for the Procurement community. I hope it will be useful and would appreciate your feedback and comments to douglasregueros@hotmail.com