What is Tail Spend

Tail Spend is the Organisational spend

that falls outside of the main strategic

purchasing categories that are associated

with the main business line of an organisation

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.

Tail Spend falls outside of the main purchasing categories associated with the direct business line of an organisation and is usually not effectively managed by the procurement team, as it is seen as non Strategic spend.

Tail Spend can fall into a number of categories, for example:

  • Print and Packaging
  • Signage and Display
  • Business Services
  • Marketing Services
  • Professional Services
  • Office Products
  • Uniforms and Apparel
  • Facilities
  • Gifts and Premiums
  • Temporary Labour

The following table compares Tail Spend to Stratgeic Spend to highlight the major differences:

Focus Area

Tail Spend

Strategic Spend

Number of suppliers in the market

High

Low

Number of suppliers being used

High

Medium

Number of categories of spend

High

Medium

Average transaction $

Low

High

Number of transactions

High

Low

Number of decision makers

High

Low

Procurement control

No

Yes

Number of requisitioners

High

Low

Number of suppliers per Procurement Manager

High

Low

Maverick spend issues

Yes

No

Multiple Business Units and many people involved

Yes

No

Achieving impact (savings / controlled growth)

Difficult

Easy

Streamline your sourcing, procurement and billing

Into one easy-to-use cloud based platform. Claritum’s solution is easy to use which increases rapid adoption by users.

Achieve cost savings

Control every penny of your complex category expenditure through our integrated online sourcing, procurement and invoicing platform.

Reduce risk and waste

Manage the procurement of specialized categories and tail spend. Control pricing and eliminate maverick spend.

Get granular visibility of every transaction

Get detailed reporting on every transaction, globally and in real time.

Get control and visibility of your spend today.

Sourcing

Claritum’s sourcing features provide a combination of a structured closed-bid RFx and contract allowing buyers to establish a ‘market’ or baseline ‘volume’ price and take advantage of market variances through ‘spot pricing’ RFxs.

Supplier Management

Keep up to date with supplier changes and monitor supplier performance.

Invoicing

Keep in control of your cash-flow and track what’s pending and what’s outstanding.

What is Tail Spend Claritum
What is Tail Spend Claritum

Procurement

Automate your sales order and purchase order procurement processes for improved efficiency.

Reporting

Get visibility of every penny of every transaction with flexible, customisable real time reports.

Storefronts

Capture orders, aggregate demand and centrally control local buying from multiple approved suppliers with easy to use, highly configurable storefronts.

Claritum is trusted by over 150,000 users in 35 countries to deliver significant savings and efficiencies

What is Tail Spend Claritum
What is Tail Spend Claritum
What is Tail Spend Claritum
What is Tail Spend Claritum

Get control and visibility of your spend today.

The Claritum system has been superb!

Jamie W

Senior Buyer, GREENWICH COUNCIL

Wow! Claritum has helped us save 30%.

Marketing Procurement Buyer

Category lead-marketing services, BRAND OWNER

What is Tail Spend ClaritumClaritum have been named as a Provider to Watch 2016 by Spend Matters.

Worldwide Offices
Head Office Claritum Limited
Unit 5
Riverside Court
Bath
BA2 3DZ
United Kingdom
T: +44 (0)1225 851666

North America
4500
140th Avenue North
Suite 101
Clearwater
Florida 33762
United States of America
T: +1 (646) 736-0838

Pin It on Pinterest

Share This