How to Make Unplanned Spend a Thing of the Past
By Cindy Rittel | May 21, 2021
Before we get started, it’s worth pointing out that there’s really nothing wrong with spot buying in procurement. Sometimes the situations we find ourselves in, or the way the market behaves, makes it completely unavoidable.
A couple of purchases here and there for those exceptions aren’t likely to break the bank. A few (hundred) dollars’ worth of unplanned spend is probably ok, as long as your procurement strategy accounts for the requirements so they’re not unplanned in the future.
Issues arise when unplanned spend becomes the norm and all of those purchases add up to a large amount that comes as a surpise.
The problem with unplanned spend
Get unplanned spend under control
- Understand where the spend is being made
- Find out if there are any repeat offenders or recurring requirements
- Formalize a more proactive approach which can then be added to procurement’s strategic buying activities.