Tail Spend Management
Tail spends are majorly defined as low-value items resulting by the large number of smaller-value transactions, that collectively account for a significant number of suppliers associated with the procurement function.
In manufacturing industries, tail spending includes Office supplies, safety items, MRO (maintenance, repair, and operations) items, and services. Effective management of tail spend can result in the following benefits,
a. Streamlined procurement processes,
b. optimizes the overall procurement efficiency,
c. Controlling the procurement budget,
d. Optimizing the PR – Delivery Turnaround Time (TAT).
Instatenders provides various operating models to manage the tail spending effectively and efficiently using the in-house tail spend management tool and enabling following benefits.
a. Cost savings,
b. Reduction in total cost of ownership, and
c. Free up resources to focus on strategic initiatives that drive growth and innovation to the organization.
