Spend control comprises the measures an organisation uses to ensure that spend arises only through intended routes, under defined rules and with clear responsibility.
Levers. Policies and approval thresholds, contracts and master agreements, a defined procurement process, transparency over current and planned spend, named owners.
Two approaches. The restrictive approach works with blocks, additional approvals and mandatory use. The enabling approach makes the intended route so easy that going around it becomes pointless. Restrictive controls raise the effort even for legitimate requirements. Where the process is seen as too burdensome, maverick buying arises. In practice both approaches are combined, and the balance is what matters.
Where it sits. Spend control is the activity. Spend under management is the metric, maverick spend the symptom of missing control, and spend visibility the prerequisite.
For services. Control has to take effect before the engagement is awarded. Once the invoice arrives, spend can only be documented, no longer steered.