Corporate

Tail Spend Management

Often overlooked, tail spend management is becoming increasingly important in the growing world of marginal gains.

Most big businesses these days have some form of Procurement or Purchasing team - however, they rarely have enough resource to manage all of the company’s purchasing activities... leaving tail spend suppliers and contracts to be managed by the budget holders alone.

But why?

It's all because of the little-known fact that procurement departments are resourced according to the Rule of Pareto - i.e. their team will only ever be big enough to manage the top 20% of the company's supplier base, as this usually equals around 80% of the overall spend on suppliers.

This all makes sense... until you realise just how BIG that tail spend can be. Your marketing department alone could be spending in excess of £100 million per year, meaning there is at least £20 million going unmanaged in just one department.

Not only that, good purchasing is just as much about managing business risk as it is getting the best deal - just one bad contract can have a devastating impact across the whole business.

If your procurement team is unable to manage all of this extra tail spend, then it certainly won't have the time to be able to train budget holders throughout the business on how to best manage things themselves either...

This is where we can help.

We have developed a Procurement Course to train & develop employees on cost reduction, risk & supplier spend & management. It is specifically aimed at employees with little or no commercial experience, and can have a real impact on your tail end management.

The course contains over 4 hours of engaging content covering the purchasing process, negotiation, and supplier management - everything needed by employees working with suppliers on a day to day basis.

Our procurement course is available for 12 months so you can revisit specific modules for a quick recap, whenever needed.

Online Video Course

All of our training and consultancy services are intended to work as an extension to your current procurement team and processes - not replace them. Your company's professional buyers do a great job... but they can't be everywhere at once.

In fact, employees who have benefitted from our training will actually work much better with their in-house procurement team than before. A new understanding of purchasing best practice, tools and processes mean bigger projects will run smoother and faster, and at the other end of the budget sheet, tail spend management can also be attained.

Explore our services...