Tail Spend

Articles, videos, presentations and infographics about Tail Spend

Tail Spend

Here is a selection of articles, white papers and infographics looking at managing tail spend. We look at what tail spend is and provide strategies for how to manage your tail expenditure.

White Paper: An Introduction to Tail Spend

Tail Spend Challenges

Tail Spend usually constitutes the 20% of spend that is ignored and not actively managed. It is usually composed of  low value, low volume and non-critical commodity products. These products could be anything like uniform, apparels, office furniture, or papers....

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5 Reasons to Tackle Tail Spend

The traditional view of procurement, promoted by large consultancies, is to focus on managing the top 80% of spend and ignore the 20% of spend in the tail. The argument for ignoring spend is that there are few opportunities for savings.  However, as "sourcing doctor"...

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Stop chasing your tail

Are you still chasing your tail spend? Does your business spend millions on ad hoc and unpredictable low cost products and services?

You know the kind of things that most businesses don’t plan for, but still spend 10-20% of their revenues on. The type of transactions that are too small for procurement to bother with but too numerous to ignore.

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Complex Tail Spend Management

Complex indirect spend categories or ‘Tail Spend’ present unique sourcing challenges to most organisations. These categories are characterised by being unpredictable in their demand, they require accurate specifications, are deadline driven and often have a low average order value.

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Manage your tail spend more effectively

Tail spend is a phrase that is commonly used to describe the spend that a company is making but not accounting for or managing strategically through the company’s procurement policy. This is the spend that falls outside the main purchasing categories.

Often these purchases are made by employees who may not have the time or skills to make effective purchasing decisions.

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