What is the key benefit of adopting best practices for Contract Management regarding Maverick Spending?

The key benefit of adopting best practices for Contract Management in relation to Maverick Spending lies in the ability to monitor supplier compliance with contract terms. When an organization implements effective contract management practices, it establishes clear guidelines and expectations for supplier performance. This oversight ensures that employees adhere to the agreements that are in place, reducing the occurrence of Maverick Spending, which refers to the purchasing of goods and services outside established contracts or procurement processes.

By closely monitoring compliance, organizations can identify instances where employees may be engaging in unapproved spending, which often leads to unnecessary costs and inefficiencies. Additionally, it promotes accountability and encourages adherence to negotiated pricing and terms, thus maximizing the value derived from supplier contracts. This enhanced visibility and control ultimately contribute to better decision-making and cost management in procurement activities.