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Sourcing & Procurement

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Tail spend refers to the 20% of purchases that often account for 80% of suppliers—but are typically unmanaged, ad-hoc, or non-strategic. This unmanaged spend can silently leak savings and increase supplier risk. Our Tail Spend Management service helps organizations regain control, consolidate suppliers, and automate low-value transactions—resulting in significant cost savings and improved compliance.

What is tail spend, and why is it often overlooked?
Tail spend includes low-value purchases made across departments without centralized oversight. Since these transactions are small and scattered, they often escape procurement controls, making them a hidden cost center.
Uncontrolled tail spend leads to maverick buying, redundant suppliers, lack of visibility, and higher per-unit costs. Over time, this increases compliance risks and inflates operational expenses.
We start by analyzing spend data to identify tail categories and redundant suppliers. Our approach includes supplier rationalization, catalog-based buying, eProcurement automation, and policy enforcement to bring this spend under control.
We use spend classification tools, ERP-integrated catalogs, and digital procurement platforms that enable centralized, rule-based purchasing with pre-negotiated vendors.

Managing tail spend is no longer optional for organizations aiming for procurement excellence. By bringing visibility, control, and automation to low-value and fragmented purchases, our Tail Spend Management service helps you reduce maverick spend, streamline supplier interactions, and unlock hidden savings. We turn your unmanaged spend into a strategic advantage—driving efficiency and compliance across your procurement operations.