Tail Spend Management Service
Many organizations fail to realize that the tail spend management can deliver considerable incremental savings. At a time when companies are struggling to find ways to reduce costs, the tail can make a useful contribution to reach your goals.
Organizations make numerous purchases that are too small to be managed by procurement. This is called a tail spend. It can also be the purchases that are not frequent and are left unmonitored.
It is a problem with almost all companies regardless of their industry and size. They leave the low cost, low-value purchases unmanaged and they end up paying the maximum for them. The other challenges that they face include maverick spend, non-compliance and off-contract spend, etc. Unknowingly, sometimes the tail spend can end being the costliest transaction.
GainEdge can help you simplify the management of your non-core transactions. This will create more time and resources for you to negotiate on your strategic procurement.
We have helped clients save a considerable amount in tail spend. Our specialists apply the latest sourcing tools and methodologies to provide a highly efficient buying experience. We maintain a huge supplier database and use a flexible catalogue platform to ensure you get the best deals without sacrifice in quality.
You save plenty of time by optimizing your tail spend. In most businesses, while 80% of the expenditure is managed through strategic spend and completed, the rest of 20% of total expenditure is left uncontrolled from several suppliers and vendors.
Lack of resources and expertise is one reason why companies fail in tail management. They think the time and resources this requires cannot be justified. Like mentioned earlier, we have helped companies save big money by tackling and managing their tail spend. Benefits include
– On average, 15 to 30 percent savings on total spend,
– Greater visibility and control over spending
– Refining compliance in contracts
– Control on future costs and prevent spend rise.
We remove the small suppliers by asking them to work through prime contractors on a category or geographical basis. Each time a spend analysis is run, a small suppliers are slowly eliminated. However, the small supplier may not be willing to deal with a third-party contractor. You may have to talk with them or change suppliers.
Utilize custom technology
Our easy to use spend management platform assures reduce the cost of handling the tail. You get greater visibility of your spend and we assist you in managing your supplier base.
Outsourcing your tail spend management
It means handing over your problem tasks to a service provider. They have their own methodologies, automation tools, and strategies to manage spend better than the client.
GainEdge is a team of experienced and qualified professionals. We have helped all kinds of businesses take advantage of the newest procurement technology to minimize costs and improve efficiency.
You will not be on your own. Our consultant will work with you and help you identify new opportunities of saving within your tail spend maximizing your procurement spend.