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Supply Chain Management:
Maverick Buying,
presented by Dr. Darren Prokop,
Professor Emeritus of Logistics,
University of Alaska, Anchorage.
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What is supply chain management?
It is the linkage
of organizations
in order to meet
some strategic goal.
Linkages could be
achieved through
contractual relationships
or through mergers
& acquisitions.
Linkages could be more
informal and involve
a joint venture
or strategic alliance covering
a more limited
business activity.
In any case, the intent of
supply chain management
is to foster
trusting relationships
whereby the partners
are more valuable
together than apart.
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Companies, which sell their
outputs on a regular basis,
typically buy their inputs
on a regular basis as well.
Inputs bought from vendors
may include raw materials,
subassemblies, finished
goods, and support services.
Since the company's
production pace
depends on a reliable
stream of inputs,
relationships with key vendors
should be codified
within a legal contract.
The intent is to reduce
purchasing costs and
strengthen buyer-vendor
relationships.
Buying only from
company-authorized
vendors can serve
to centralize
purchasing decisions.
However, lower echelon
buyers within the company
may not abide by
the company's purchasing
policy and purchasing process.
This breakdown in the
buyer-vendor relationship
is known as Maverick Buying.
Maverick is an eponym from
Samuel A. Maverick, 1803-1870.
A Texas politician
and rancher who,
unlike other ranchers
at the time,
chose not to brand
any of his cattle.
Hence, the word has come to mean
independent-minded
or non-conformist.
Regarding Maverick buying,
instead of the word 'maverick',
some use the term off-contract
to mean the same thing.
Instead of the word buying,
some use synonyms, such
as spending, purchasing,
or procurement.
Low-priced, low-priority
items such as
