Your tail-spend is one of the biggest sources of incremental savings available.
In fact, if you stacked up the individual spend on each supplier in that tail, you might find that, taken together, the tail is your biggest supplier.
In an economic and business environment where CFOs are leaving no stone unturned in the quest for cost-reduction, no doubt tail-spend can help you make your numbers.
GEP has helped dozens of leading companies turn their tail-spend into an operational advantage.
In addition to significant realized savings (not just a net positive return on investment), benefits of a tail-spend management program with GEP include:
- Reduced cost of procurement operations
- Increase spend under management
- Improved purchasing experience for end users
No argument here – the 80/20 rule should dictate prioritization of effort.
Still, many enterprise procurement teams have long ago targeted the 20 per cent and tasted rich gains.
End of story? Not by a long shot. Make that a long tail.
Tail-Spend Management Services from GEP not only identify savings in your tail-spend but deliver them to you.
Your level of effort? Call GEP. It’s that simple. So you don’t have to leave money on the table unless you want to.
Blueprint for Savings
Cleansing and classification of data from a variety of source systems using our state-of-the-art spend analysis tool to identify the true “tail”-spend
Deep-dive analysis within the tail-spend to re-classify the tail and identify appropriate strategies to tackle the spend at a category or supplier level
Accelerated execution of identified opportunities that includes bringing tail-spend purchases into the purview of existing contracts and leveraging GEP’s knowledge base of category data, RFQ templates and RFx/Auction tools for faster sourcing
Ongoing Spot Buys
A highly efficient “buy-desk” to extract value from each purchase at the point of requisition — These teams use a variety of tools and methodologies to balance cost savings and business criticality for every purchase
Reduce maverick buying at source by implementing online and punch-out catalogs, P-cards and improved compliance reporting. The Procure-to-Pay function of SMART by GEP® allows you to easily implement catalogs and provide a delightful buying experience to users.