In the world of strategic sourcing, realizing 5 to 8% savings is considered to be impressive. After all, these are the high-spend categories and are supposedly already well-managed and frequently revisited for improvement opportunities. In contrast, when our clients work … Read More
Tail Spend
Technology to Solve Procurement’s Persistent Tail Spend Problem is Available.
Tail spend frustrates many procurement groups. It’s messy, it’s complex and it’s time-consuming to tackle. Inking big deals and keeping stakeholders happy seem like far better priorities for the typical category manager, since that’s how he can turn executive heads and make his daily life simpler. … Read More
Tail Spend is too good to be true – and that’s a problem!
[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text] Simfoni manages tail spend for clients all over the world and across many different industries. But regardless of geography or sector, I have gained 2 important insights that are vastly out of sync with the common theory … Read More
Why Mid-Size Companies Need On-Demand Solutions to Conquer Tail Spend
Procurement has firmly entered the tail spend era, and with necessary tools now available to tackle this persistent purchasing problem, supply organizations are finally consolidating costs, cracking down on unauthorized spend and clawing back lost time to deliver real value to their businesses. At least, that’s what the picture is starting to look like at large manufacturers and corporates. … Read More
Simfoni Tail Spend team delivers OS&E packages for the Louvre Abu Dhabi Museum
Simfoni Tail Spend managemnt team of professionals were given responsibility to source a wide range of Operational Supplies and Equipment (OS&E) and Furniture Fittings and Equipment (FF&E) for the new Louvre museum in Abu Dhabi, which opens its doors to the public on the 11th November, 2017. … Read More
How Important is Catalog Procurement in the Management of Tail Spend?
So far in this series, we have discussed the importance of tail spend and the implications of managing it badly, and what well-managed tail spend looks like. This time around, we will consider whether procurement catalogs have an important role to play … Read More
Why it is Important to Properly Manage Tail Spend – Studies and Expert Opinion, Part 3: From the Pareto Rule (80/20) to the Long Tail to Tail Spend
Just about every person in the business community is familiar with the Pareto Rule, also known as the 80/20 rule, i.e. that approximately 80% of a business’s sales and profits will come from approximately 20% of sales or customers. When … Read More
Do You Really Understand What It Means to Manage Tail Spend, and Why is There so Much Interest in this Practice Lately?
Up until recently, most companies focused almost all of their procurement effort and analysis on their biggest suppliers and purchasing categories, basically the 20% or so of suppliers or categories that consume 80% of the total procurement spend. … Read More
Why it is Important to Properly Manage Tail Spend – Studies and Expert Opinion, Part 1: Manage Your Tail Spend Better and Save Up to 10% on Purchasing Costs
Over the last few years, the importance of managing tail spend has become a regular talking point among business managers and owners. This issue is especially relevant to businesses in which procurement plays an important role in the company’s overall … Read More