Optimization Beats Leverage

Optimization Beats Leverage

We’re often asked by clients what real benefits are derived from outsourcing the management of tail spend. Is it process costs, labor arbitrage, price savings etc.? Whilst all of the above contribute significantly, meaning in the range of 2-15% of the total procured cost, by far and away the...
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Does Tail Spend Really Matter?

Does Tail Spend Really Matter?

The generally accepted definition of “tail spend” is the bottom 20% of purchases made by an organization (by value, volume, or both). The Pareto rule is also usually applied to tail spend in regard to suppliers, i.e. tail spend purchases represent the bottom 20% or purchases, but very often 80% or...
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When is Reality of Global Procurement Illusion?

When is Reality of Global Procurement Illusion?

The scientific community that is working on answering the question of “what is our reality — the universe — made of?” is increasingly coming to the conclusion that the underlying matter of particles, that make up our reality appear to be layers built upon something...
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