The finalists for the World Procurement Awards 2018 were released this week and we are pleased to announce that Simfoni – the spend analytics and tail spend management specialist – has been nominated in the category “Best New Procurement Technology”.
Simfoni has been shortlisted in the category “Best New Procurement Technology” for its submission relating to Vitesse – the market-leading innovative tail spend management solution. Tail (or non-core) spend management is rapidly emerging as one of the most exciting areas of procurement focus in recent years as advances in new technology – such as robotic process automation (RPA) improve organizations’ effectiveness in tackling this difficult to manage the area.
Simfoni recognized a gap in the market for a solution to manage spend that lies between strategic and catalog spend. This “tail spend” is not well served by current solutions, and is notoriously difficult to manage.
When procurement tackle tail with a strategic sourcing approach, they find that it drags buyers away from strategic spend. The alternative is to devolve responsibility to the user, which speeds up the process but generates an even longer tail of one-time vendors, which is expensive to manage, but importantly, spend is not leveraged and competed.
Tail spend represents an opportunity goldmine. When you add spot buy purchases to tactical spend, plus low-value adhoc spend, then you realise why tail represents 30% – 40% of spend for some organisations, yet it often flies under the radar due to its nuisance factor.
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Vitesse stands for Vendor Integrated, Tail-End Spend Sourcing Engine and is a purpose-built platform for Tail Spend that automates rapid sourcing activity. Vitesse includes tactical buying software with pre-installed vendor content customised by category and region, with a database of 1m+ deals for frequently requested items.
Deployment leads to a) Significant reduction in purchase cost, b) Reduction in process and management costs, c) Reduction in vendor management costs, and d) Improved compliance and spend visibility.
Vitesse is available as an On-Demand platform, which is how mid-sized organisations deploy the service, with minimal, or zero systems integration and an immediate ROI on day one of usage. Vitesse is also offered as a mobile app enabling users to raise requests on the go and add images using their smartphone.
Enterprise clients with existing ERP/P2P functionality deploy Vitesse as a punchout when the item or service is not found in their existing catalogs.
Simfoni’s Vitesse Tail Spend solution is a purpose-built platform blending buying automation software, vendor & pricing content and category expertise to help organizations to reduce non-core expenditure, reduce the management cost, speed up the user experience, increase transparency and reduce vendor risk.
Contact us today to know more about how Simfoni’s technology and processes can help you in tail spend management.