We talk about tail spend like it is one thing, but procurement knows it is far more complicated than that. Spend can find its way into the tail through one of many ‘wrong turns,’ each of which requires a different approach by procurement and a correspondingly different resolution. There is no one ‘cause’ of tail spend and therefore there is no one solution.
Tail spend management can be a labor intensive effort, a challenge considering the low ROI typically associated with the high number of low-value transactions.
Companies that have a mature tail spend management program leverage automation wherever possible and dedicate a formal lead or tail spend manager to the effort. This person can ensure that each type or source of tail spend is addressed or reduced – ultimately generating an ROI that includes both savings and risk mitigation.
On September 28th at 10am ET, we will be joined for an AOP Live session featuring Jean-Baptiste Anne, Head of Enterprise Sales and Professional Services Teams for Amazon Business, and Vishal Patel, VP of Product Marketing at Ivalua. They will answer live audience questions about how to know you are making the right investment to deliver a tail spend ROI for your company.
Having a dedicated tail spend solution is different than integrating that same capability into a platform, especially since procurement naturally wants to minimize the tail without detracting from the overall ‘customer experience’ they provide. It is therefore absolutely essential to understand what is in your tail spend. That way procurement can re-direct it through self-guided buying options such as Amazon Business, new procurement-led sourcing projects, or incorporation into existing contracts.
Join us on September 28th and ask your questions of Jean-Baptiste and Vishal or submit them in advance when you register by clicking here.