But by addressing the tail-end of spend together, Procurement and Finance can deliver significant savings in terms of both reduced unit prices and process improvements – both of which free up money and valuable resources.
“For a typical organisation 5% savings on tail-spend can be equivalent of a 10% increase in net profit.”
A greater focus on tail-spend is required by applying a professional, methodical approach and by using the right combination of eProcurement technology combined with appropriate outsourced and/or managed services.
However, by addressing the tail-end of spend, Procurement and Finance can deliver significant savings in terms of reduced unit prices and process improvements – both of which free up money and valuable resources.
In this paper, we explore the typical challenges of managing tail-spend, and the strategies and tools that make it easy to extract savings so you can achieve:
- Noticeable cost savings
- Better visibility of where you spend money
- A reduction in maverick and off-contract buying
- A sizable cut in the number of invoices that need processing
- A reduction in the time needed to manage suppliers
