There is perhaps one area of procurement that does not get the attention it deserves – tail spend. Dismissed by some CPOs as “pocket change”, it could be described as the forgotten child of procurement or the one that got away.
Tail spend has been defined as the 10-20% of spend accounted for by 80% of an organisation’s suppliers, so vast numbers of small low-value transactions. But don’t underestimate the value of these transactions – they can represent millions of pounds of spend and large potential savings.
Traditionally, procurement has decided the time and effort required to limit tail spend, let alone eradicate it, is not worthwhile. But the technology now available – with its visibility, analytics and controls – means the cost-benefit analysis must be run again. Read this Supply Management Insider expert report, produced in partnership with GEP, as we explore why procurement organisations need to think differently about their capability.
GEP helps global enterprises operate more efficiently and effectively, gain competitive advantage, boost profitability, and maximize business and shareholder value. Fresh thinking, innovative products, unrivaled domain and subject expertise, and smart, passionate people – this is how GEP creates and delivers unified supply chain solutions of unprecedented scale, power and effectiveness.
Named a Leader in Gartner Magic Quadrants, Winner for Best Procurement Software and Best P2P Provider at the World Procurement Awards, Best Procurement Consultancy at CIPS Supply Management Awards, and Best Provider at the EPIC Procurement Excellence Awards, GEP is frequently honored as an innovator and leader in source-to-pay direct and indirect procurement software by Gartner, Forrester, IDC, Procurement Leaders, Spend Matters and CPO Rising.
GEP is also ranked leader in managed procurement services (procurement outsourcing) by Everest Group, NelsonHall, IDC, ISG, HfS and IAOP. In addition, the primary research firm in the management consulting sector, ALM Intelligence, ranks GEP leader in procurement strategy and supply chain consulting. With 21 offices and operations centers in Europe, Asia and the Americas, Clark, New Jersey-based GEP helps enterprises worldwide realize their strategic, operational and financial objectives. To learn more about our comprehensive range of software and services, please visit www.gep.com.