A new report has uncovered powerful insights into the phenomenon of rogue spending within manufacturing organisations, revealing how big a problem it is; why it happens; and the overall business impact.
The Rogue Spending in Manufacturing 2023 report, researched and produced by The Manufacturer in partnership with ServiceNow, takes a deep dive into the unmanaged, uncontracted, and non-compliant expenditure which occurs within manufacturing organisations outside of procurement mandates, contracts, or policies.
Key findings:
- 40% of manufacturers said travel/entertainment is the area where rogue spending occurs the most
- 44% of manufacturers believe pressure to meet production targets is a top reason for rogue spending
- 39% of manufacturers say improving automation/data sharing between systems and increasing employee training and education are two key steps businesses can take to prevent/detect rogue spending
- 47% of manufacturers believe a lack of understanding of procurement processes and procedures is the number one reason for rogue spending
You can download your copy of the Rogue Spending in Manufacturing 2023 report below. The full report contains detailed insights gleaned from interviews with manufacturers to provide valuable context to the data.
