What is Tail Spend?
Posted on 30th July 2020 at 10:03
Businesses focus a significant amount of time on their strategic suppliers which often makes up 80% of their spend. But what about the other 20%?
This is what is considered to be a business's tail spend. It comprises low volume, low value items which tends not to be covered by contracts, falls across most of spend categories and can cause issues in production if it isn't managed.
Focus is not often given to this category and costs can increase without question. This means that with focus, cost reductions can be achieved. By applying purchasing principles like supplier consolidation to increase buyer power, savings can be achieved.
Pro-Outsourcing Ltd is able to manage your tail end spend, putting focus on finding the savings and ensuring that supply is maintained. to edit it.
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