Managing Tail Spend

Tail spend, sometimes called indirect or low value spend, can be up to 20% of total spend that typically goes unmanaged within an organisation.

Made up of high volumes of low value ad hoc transactions with hundreds of suppliers, these individual purchases are often made outside purchasing controls.

tail spend management

Managing tail spend is a tall order for procurement teams. Our services enable enterprises to unlock previously untapped potential, whilst reducing risk and improving compliance.

The customers we work with typically achieve:

Up to 30% savings on procurement costs
10-25% reduction in managed third-party spend
40-80% reduction in invoices
Operational savings in the region of £5K per year, per supplier

Unlocking the value of tail spend

Providing an end-to-end service that features advanced analytics, supplier consolidation and management, and e-catalogues that boost the efficiency of procurement processes for end-users, we drive efficiencies and strategic initiatives that generate measurable results in lower value spend areas.

Our Approach

Discovery [Find the Money] - Using state-of-the-art tools we capture data from systems across the enterprise, we deliver full transparency into the organisation’s tail spend and the potential opportunity to make savings.

Transformation [Get the Money] - We rationalise and consolidate the the supplier base on a category-by-category approach, negotiating a preferred supplier framework to enable organisations to access savings immediately. Consolidating the supplier base to aggregate spend with pre-selected and approved vendors is just the start. We also initiate tailored processes that streamline the purchasing process and ongoing management of suppliers going forward.

Optimisation [Process Efficiency] - To capture demand across the organisation, we deploy e-catalogues and marketplaces that give your employees access to the products and services they need from pre-approved suppliers. In addition to making the requisitioning process easy and straightforward for end-users, we also handle the entire purchasing process – everything from the initial purchase request to PO creation to issuing goods receipts.

Our tail spend management services enable organisations to rapidly cut procurement costs, save time and take back control.

To find out more about tail spend management contact us or click here.

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Tail spend, sometimes called indirect or low value spend, can be up to 20% of total spend that typically goes unmanaged within an organisation.

Unlocking the value of tail spend

Our Approach

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