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.
S.T.A.R Procurement 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 S.T.A.R Procurement include:
- Reduced cost of procurement operations
- Increased spend under management
- Improved purchasing experience for end users
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, S.T.A.R Procurement brings field-tested methodologies to bear on tail spend — proven methodologies that bring real results. Our approach to tail-spend management 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 e-catalogue platform
- Unrivalled category expertise and transaction management capabilities
Why S.T.A.R Procurement
Our tail-spend management methodologies can be custom-configured to your organization’s existing processes, organisation, 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 S.T.A.R Procurements 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 catalogues, P-cards and improved compliance reporting.
Our tail-spend management programs are designed, managed, and executed by experienced procurement professionals. We hit the ground running from Day One.