It’s interesting to see how many organisations are still contending with the various process and financial inefficiencies resulting from ‘tail or maverick’ spend. It seems the biggest headaches experienced by the many delegates we spoke with were; categorisation of expenditure, capturing requirements efficiently, lack of reporting and overcomplicated platforms.
Some delegates also suggested that, frustratingly the cost of consultancy often offset the savings made from any resulting software implementation!
Some interesting sessions too, with SAP Ariba suggesting “the cost of purchasing a trivial £5 consumable could in reality cost in excess of £200 to a business”. Another interesting highlight was that “tail spend in the Manufacturing industry is predicted to have reached as much as 45%”.
On a lighter note, we did come across some surprising stories of ‘tail spend woe‘ during
eWorld so we decided to share some…
A cheap generator valve cripples an entire plant!
What is seemingly a straight forward purchase and installation is suddenly transformed into a business crippling catastrophe due to an antiquated purchasing process restricting the acquisition of trivial service parts!
Just two batteries could costs us hundreds (and we make them!)
Obviously manufacturing and administration are located separately and to the unfamiliar it would be the assumption that you would be able to simply request a packet of batteries from the warehouse.
Unfortunately, due to an inability to manage tailspend, head office could only order replacements by the pallet. This resulted in a “maverick spend” where the end user visited a local supermarket to buy some by debit card!
We met so many new contacts at eWorld but surely missed the opportunity to meet and greet everyone.
If you would like to see a working demonstration of the Claritum platform, please get in touch;