Tail Spend Management
Tail Spend Management
Procurement doesn’t want to become a bottleneck for lower-value spend when there are bigger issues to attend to.
Centralized or centre-led Procurement team with specializations and tools to manage strategic spend. Seeking a Tail Spend technology solution to control, manage and realize savings across indirect and also lower value direct spend.
Manage Tail Spend Now!
With businesses spending 70% of Revenue with suppliers, Procurement
is a top priority for everyone.
Tail Spend Automation
Stop Chasing the Tail. Capture It.
Tail spend typically comprises indirect and lower value direct spend that accounts for 20% of spend but over 90% of suppliers and transactions. Controlling the tail has been a perennial challenge for Procurement as it takes-up valuable time and resource and is hard to analyze and control without specialist tools. Procurement doesn’t want to be a bottle-neck for lower value spend, so advanced Procurement teams are turning to Simfoni’s specialist solution for tail spend.
TAIL SPEND MATTERS
Unmanaged tail spend represents risk and untapped value.
Procurement functions are right to focus efforts on managing top suppliers and contracts for this is probably where the greatest value and risk lies. However, organizations are always left with a big rump of unmanaged tail spend which often flies under the radar, but when you add it all together the tail can be the size of a top 4 category, or a top supplier.
SPECIALIST TOOLS TO TACKLE THE TAIL
Savings from a dedicated tail spend solution are significant.
Simfoni’s Spend Automation platform is a purpose-built solution to control and optimize tail-spend. The Platform can operate alongside other eProcurement solutions and ERPs and is super easy to implement and connect with APIs. Simfoni’s Spend Automation platform is an ideal solution to control and optimize tail-spend. It can run alongside, and work with, other spend management solutions and ERPs.
UNMANAGED SPEND CONTROL
Autonomous sourcing and employee self-sourcing controls previously unmanaged spend.
The platform automates over 75% of the quotation management process, meaning that more spend can be competed, wringing out significant savings from previously unmanaged low value spend. Users have direct access to our Marketplace with catalogs and preferred suppliers with options to deploy Safe Harbor Sourcing where personnel can run their own sourcing events within a controlled environment.
Support for minority and diverse suppliers
The ability to source from minority and diverse suppliers is important to us. Our regional BuyDesks operate across the US, Europe, Australia and the Middle East which means that we can source from local markets, which is especially important when sourcing lower value tail spend requirements which can be purchased from such suppliers which is tracked and reported in analytics dashboards.