Leaders from Source One and Buyers Meeting Point Discuss Strategic Tail Spend Management
Discussing strategic spend management on the Source One Podcast.
Organizations differ in how they define ‘tail spend.’ For some organizations, ‘tail’ refers to any spend that’s not covered by a contract. Others apply the Pareto Rule and label the 80% of spend covered by 20% of their suppliers as ‘tail.’ Still others call all of their indirect spend ‘tail.’ Regardless of how they define the term, nearly every organization takes a similar approach to managing tail spend. That is to say, they leave it out of sight and out of mind.
While it’s often easy to ignore, tail spend is just as often a source of hidden value. On this episode of the Source One Podcast, Director Anthony Mignogna joins Buyers Meeting Point Founder Kelly Barner to advocate for a more strategic, hands-on approach to tail spend. Throughout the discussion, they advise Procurement professionals to treat tail spend as if its the organization’s only spend. Doing so, they suggest, could reveal considerable opportunities to reduce costs, optimize supplier relationships, and provide for sustainable process improvement.
Kelly and Anthony just scratch the surface of what a new, more strategic approach to tail spend management can mean for your organization. Want to learn more? Reach out to Source One’s team of spend management consultants today. Whether your tail spend includes purchases from just a few select select categories, or constitutes the bulk of your indirect spend, we’re here to help you take back control. Since 1992, we’ve armed leading organizations with the category expertise, market intelligence, and cutting-edge technology they need to generate maximum value. Together, we’ll build a compelling business case for approaching tail spend strategically and assist your team in carrying out comprehensive initiatives.
Tail is often defined in many different ways depending on the company and the industry. Some describe Tail Spend has anything that's not covered by a contract. Others describe it based on the Pareto Rule as the 80% of spend that is covered by 20% of suppliers. Regardless of how it is defined, it is often an area of spend left un-managed.
In this episode of the Source One Podcast, Procurement experts and thought leaders, Kelly Barner of Buyers Meeting Point and Source One Director, Anthony Mignogna present the business case for tackling Tail Spend. They discuss the trends in approaching this spend differently, with a more strategic approach.
Organizations differ in how they define 'tail spend.' For some organizations, 'tail' refers to any spend that's not covered by a contract. Others apply the Pareto Rule and label the 80% of spend covered by 20% of their suppliers as 'tail.' Still others call all of their indirect spend 'tail.' Regardless of how they define the term, nearly every organization takes a similar approach to managing tail spend. That is to say, they leave it out of sight and out of mind.