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
- Increased spend under management
- Improved purchasing experience for end users
The University of Michigan is a large, decentralized organization ... GEP is helping Michigan be successful by diagnosing our spending patterns and working with us to develop new business processes and practices that will save millions of dollars that can be channeled back to our core missions.
– Sr. Finance Lead, University of Michigan
Success Requires Experience
Tail spend is fraught with characteristics that render traditional sourcing approaches ineffective. Poor data visibility, low volume, time sensitivity, unique and often unstable specifications — just to name a few. And what's more, apart from the natural dearth of contracted suppliers, non-compliance and maverick buying often lurk here.
In contrast to abstruse conceptual and theoretical frameworks, GEP brings field-tested methodologies to bear on tail spend — proven methodologies that bring real results. Our approach is iterative and leverages our industry-leading strategic sourcing and transaction management capabilities, and proprietary tools, to deliver sustainable results:
- Billions in tail spend managed for leading global enterprises
- Unmatched track record of success, measured in hard dollars
- State-of-the-art, artificial intelligence-based spend analysis and sourcing tools
- RFQ templates, sourcing methodologies and category best practices
- Rapidly expanding global supplier database
- Highly flexible eCatalog platform
- Unrivaled category expertise and transaction management capabilities
The saying goes “when all you have is a hammer, every problem is a nail.” GEP has the most comprehensive set of procurement solutions available anywhere – a full range of tools. So, in contrast to companies that answer before the question is asked, we listen. And together we figure out what makes most sense for you.
Our tail-spend management methodologies can be custom-configured to your organization’s existing processes, organization and systems nuances. And they’re designed to rapidly deliver sustainable positive cash flow — so you start seeing savings fast.
Spend Analysis: 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.
Filtering: Deep-dive analysis within the tail spend to reclassify the tail and identify appropriate strategies to tackle the spend at a category or supplier level.
Sourcing: 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.
Tail Spend Reduction: Reducing maverick buying at source by implementing online and punch-out catalogs, P-cards and improved compliance reporting. SMART by GEP®, our powerful procure-to-pay platform, allows you to to easily implement catalogs and provide a delightful buying experience to users.
GEP is the only leading global provider of procurement services and software focused exclusively on procurement. Our tail-spend management programs are designed, managed and executed by experienced procurement professionals. We hit the ground running from Day One.