Certification in Supplier Diversity Practice Exam

What does the term 'maverick buying' refer to in supplier management?

1. Identifying new suppliers without prior assessment

2. Engaging in unauthorized spending that undermines the supply chain

3. Purchasing without consulting with marketing teams

4. Building relationships with multiple vendors for better pricing

The correct answer is: Engaging in unauthorized spending that undermines the supply chain

The term 'maverick buying' refers specifically to engaging in unauthorized spending that bypasses established procurement processes and policies. This practice can undermine the supply chain by creating inconsistencies in supplier relationships and potentially leading to issues such as increased costs, compliance violations, and lack of accountability in purchasing decisions. When employees procure goods or services on their own without proper oversight, it can lead to fragmentation in spend management, making it challenging for organizations to maintain control over their sourcing and negotiate favorable terms with approved suppliers. The other options do not fully capture the essence of maverick buying. Identifying new suppliers without prior assessment may involve a lack of due diligence but does not necessarily convey the unauthorized nature of maverick buying. Purchasing without consulting with marketing teams, while possibly a deviation from collaboration, does not inherently disrupt the overall procurement process or violate spending controls. Finally, building relationships with multiple vendors for better pricing is a strategic approach to supply chain management and negotiation, contrasting sharply with the ad hoc and potentially risky nature of maverick buying.