Strategic Tail Spend. Spend Analytics.
Strategic Sourcing. Reduce risk. Increase visibility.
Significant cost-saving opportunities might be hiding in the long tail of your supply chain. However, due to its complicated nature and the limited resources within a procurement team, it is difficult to bring this tail spend under control.
If your company is looking to increase the percentage of spend and suppliers under management, our comprehensive and highly customizable tail spend services might be just what you are looking for! Through a tailored combination of technology and services, we will convert your tail into strategically managed spend.
What is the Tail Spend? 80% of indirect suppliers account for 20% of your business spend. These suppliers often have unpredictable demand which makes them uncontrolled suppliers creating unmanaged spend. Managing tail spend means you are improving your supply chain.
Where does the tail come from? The tail can come from a variety of suppliers. Many common categories are Packaging Supplies, Print Services, MRO, and Facilities Management.
Lower Total Spend
Streamline Supplier Invoicing
We take a strategic spend approach to accounts payable to achieve one invoice with flexible terms that are favorable to your business or organization. This is achieved through our procurement function known as e-Procurement management platform that can integrate with your ERP system to extract strategic supplier information. Once we identify your supplier base, we create supplier profiles in our management software where we track purchase orders, pending invoices, and past transactions.
We will resolve any discrepancies or issues, and consolidate all information into one invoice. This simplifies your accounts payable process and improves your bottom line by controlling tail spending!
- Centralize accounts payable.
- Invoice verification and processing.
- Consolidated payment terms.
- Maximize discounts and volume savings.
- e-Procurement portal with supplier portals.
Create Cost Reduction
Control Maverick Spend
Maverick spending occurs when purchases are made outside of a negotiated contract or without going through the proper procurement process. When a department or individual purchases materials or services independently, it generally results in a higher purchase price. This probably happens more than you think.
To better control maverick spending, our procurement professionals have created a highly configurable e-Procurement portal. With purchasing and spend controls, you can establish rules that create spending limits at a user or account level. You can also decide which suppliers and categories users are able to purchase.
Manage Suppliers and Inventory
After cleansing the data, we will work to streamline your inventory which includes standardizing part identifications and eliminating obsolete SKUs.
Supplier rationalization, also known as supply base reduction, is the process of reducing the number of active suppliers. The goal is to consolidate spend with fewer suppliers to enable greater buying power and create better relationships with preferred suppliers.
One of the most important aspects of tail spend management is supplier management. Once we have categorized your spend threshold and verified tail end suppliers, we will onboard them into our e-Procurement platform. From there we will continually foster the preferred supplier relationship and monitor their performance.
- Vetting and onboarding
- Online portals
- Performance management
- Save time.
Spend Analysis. Spend Matters.
Get More Out of Your Data and Create Significant Savings
To truly understand what is going on with your tail-end suppliers, we will need to perform a spend analysis. Spend analysis enables us to identify how much you are spending with which suppliers and in which categories. It also provides visibility into contract compliance.
To perform a thorough analysis, we collect supplier data from a variety of resources within your company. After creating a single repository, the data is cleansed for accuracy and spend categories are created. From these categories, we identify cost saving opportunities such as supplier consolidation and modified payment terms.
- How much are you spending?
- Who are you spending it with?
- Are you getting the agreed to product or service?
LET'S GET STARTED!
We'd love to tell you more about your Tail Spend and how to get it under control!
Given its intricate complexities and the constraints of limited resources within a procurement team, taming tail spend proves to be a challenging endeavor. Understanding tail spend management and all aspects of the supply chain is critical for your business. Our Supply Chain articles can help you understand trends, insights and other important information to take control of your supply chain processes.