Supplier management: How to keep tail-spend from turning into tail-spin

Purchasing leaders often face a classic example of the 80/20 rule: Roughly 80% of annual spending comes the top 20% of their supplier base. But the remaining 80% of suppliers accounts for only a small amount of purchases — and that "tail-spend" portion can require significant time, resources and effort to manage.

If your tail-spend efforts are quickly turning into tail-spin, Group O can help. We provide proven solutions to manage tail-spend procurement, allowing our clients to focus on their top suppliers. 
Our process includes onboarding, vetting and managing suppliers to ensure consistency, quality, compliance and speed-to-market. And our MySupply® portal helps bring together buyers and sellers with fingertip access and deep visibility into your supply chain.

What you can expect from an O-Sourcing® supplier management solution:

  • Spend aggregation to maximize discounts
  • Cost-reducing supplier consolidation
  • Low-cost sourcing — leveraging our worldwide supplier network
  • Inventory and material financing
  • Purchase order processing
  • Quality audits and testing
  • EDI-enabled technology integration
  • Automated track and trace technology

How do you benefit from tail-spend management?
By managing 80% of your suppliers, we can remove 80% of the headaches, allowing you to focus on managing your top suppliers. Other benefits include:

  • Reduced costs and improved efficiencies
  • Improved compliance and quality
  • Enhanced speed-to-market and on-time delivery

Why do Fortune 100 companies choose Group O for supplier management? Billions of reasons.
Group O manages billions of dollars in supplier spending annually for some of the world's best-known brands. From tail-spend to key supplier relationships, we work to ensure consistent, compliant, hassle-free relationships. Our experience includes:

  • Existing relationships with more than 7,000 suppliers worldwide — and rapid ability to vet and add new resources
  • Established credit lines with strategic suppliers totaling $850 million+
  • More than 120,000 purchase orders processed annually
  • Tailored portals created and hosted for both suppliers and order-placers
  • Real-time metrics with crystal-clear transparency throughout your supply chain

Is an O-Sourcing tail-spend solution right for your business? Contact one of our supply chain experts today to learn more.

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