It is where procurement teams find the least money and the most suppliers. As such, tail spend is a tough nut to crack. Savings are scarce and suppliers difficult to manage and it can be a lot of effort for little return. To make matters worse, stakeholders are prone to ‘go rogue’ when spending small amounts.
Different priorities cause businesses to try different solutions as they seek to bring tail spend under control. But technologies have been developed that can dovetail with existing systems to help deal with some of these unresolved challenges.
Download Procurement Leaders’ Insight: Managing tail spend white paper to find out how leading companies manage tail spend:
- Enhancing the user experience improves spending behaviour, making a greater proportion of tail spend visible.
- Marketplace models deliver the benefits of bulk buying without the burden of creating contracts or onboarding new suppliers.
- Procurement resources can be better deployed on more strategic sourcing by adopting simpler ways of managing tail spend.