Spot Buy

Sourcing & RFx

Definition

A one-off, ad-hoc purchase made outside any framework or contract, usually for an urgent or infrequent need.

Shop related products

Explanation

Spot buys are unavoidable but should be minimised: they miss negotiated pricing and add processing cost. Mature functions channel spot buys through a guided marketplace so even one-off purchases stay controlled and captured.

Example

An urgent replacement pump is a spot buy from a general supplier because no framework covers it.

Related terms

Maverick Spend — Purchasing done outside agreed processes, contracts or preferred suppliers — 'off-contract' buying.
Tail Spend — The large number of low-value transactions and suppliers that together make up a small share of total spend but a big share of effort.
Spend Under Management (SUM) — The proportion of addressable spend that is actively managed by procurement through contracts, sourcing and controls.

Related concepts

Tail Spend Management — Bringing the long tail of small, fragmented, low-value purchases under control through visibility, consolidation and catalog-driven self-service.

Frequently Asked Questions

What is Spot Buy?

A one-off, ad-hoc purchase made outside any framework or contract, usually for an urgent or infrequent need. Spot buys are unavoidable but should be minimised: they miss negotiated pricing and add processing cost. Mature functions channel spot buys through a guided marketplace so even one-off purchases stay controlled and captured.

Can you give an example of Spot Buy?

An urgent replacement pump is a spot buy from a general supplier because no framework covers it.

Back to the procurement glossary | Procurement concepts | Contact us