How Your Company Can Tame the Tail Spend Beast

Is your company familiar with the concept of tail spend? Even if you’re not familiar with it, you have it.

Simply put, “tail spend” refers to approximately 20% of non-core procurement transactions that are largely left unmanaged, usually due to a high volume of suppliers and limited in-house resources. The best way to illustrate tail spend is through the Pareto Principle, wherein 80% of an organization’s spend is strategically managed with 20% of the suppliers. This 80% spend typically includes the cost of goods, tooling, and other capital expenditures, insurance, occupancy, and utilities.

ERA Consultant Paul Zaleski addresses critical aspects of tail spend every company should be aware of, including:

  • The first step in identifying tail spend
  • Why tail spend can be challenging to manage
  • Starting a tail spend opportunity assessment

Tail spend can be a labor-intensive task for many companies. However, executive leaders should keep it top of mind to ensure sustainability and future success. Download the full article today to gain the competitive advantage your company needs to tame the tail spend beast.

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"Executives might reason that tail spend is too costly to manage from a process point of view, but that’s the reason they should not ignore it, as it’s too costly from a business point of view."

Paul Zaleski, ERA Principal Consultant and Author of “How Your Company Can Tame the Tail Spend Beast”