Tail Spend Management for Procurement Success in 2023
Tail Spend: A Top Priority for Procurement in 2023
In 2023, tail spend has emerged as a top priority for Chief Procurement Officers (CPOs) due to various factors. Organizations now recognize the negative impact of poor user experience on procurement's
value perception. Additionally, there has been a shift towards sustainable and socially responsible purchasing, while cost pressures drive procurement to seek additional savings.
This article highlights the urgency of addressing tail spend and the need for organizations to have effective solutions in place for controlling and optimizing this spend category.
Understanding Tail Spend: A Notorious Challenge for Procurement Teams
Tail spend, which represents 10-20% of spend value but accounts for over 80% of suppliers and transactions, has long been a challenge for procurement teams. Traditional solutions like eProcurement,
shared services, and payment methods address only part of the problem. However, there is good news. Tail spend management solutions have evolved to bring more spend under control.
Simfoni uses advanced analytics to segment spend into 'Zones,' enabling a targeted delivery approach. This article delves into the context of tail spend and highlights the importance of effective management solutions.
Solving Tail Spend: Key Components for Success
To effectively solve tail spend challenges, several key components are necessary. A digital, user-friendly interface that provides self-service purchasing, pre-populated deals, and quick quote capabilities is essential.
Additionally, having embedded localized sourcing services and vendor management with integrated payments enhances the solution. Simfoni's comprehensive platform encompasses all these components,
empowering users to source their needs quickly and achieve optimal value. Designing the solution around user experience is crucial, as it directly impacts the perception of procurement's value.
Getting Started with Simfoni: Streamlining Tail Spend Management
Getting started with Simfoni is a seamless and efficient process. The platform seamlessly connects with existing systems to intercept tail spend, ensuring a quick transition to operational efficiency.
Simfoni's solution scales accordingly, offering global coverage. The mission of Simfoni is to democratize spend management and provide organizations of any size with the tools to automate and optimize tail spend.
With a unique PAY AS YOU SAVE (PAYS) commercial model, Simfoni eliminates the friction of traditional licensing and enables self-financing tail spend programs through savings offsetting fees.
Start simplifying and optimizing tail spend management with Simfoni today.