What Does Well-Managed Tail Spend Look Like?

What Does Well-Managed Tail Spend Look Like?

In our previous post, we discussed why tail spend is important, as well as the negative impact poorly managed tail spend can have on an organisation. Obviously, a well-controlled procurement “tail” is important and will have a beneficial effect on the business, but acknowledging this also raises...
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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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