The benefits

Initial focus must always be on high value, high importance suppliers. Preceding this it is important to get control and manage spend within the rest of your supply chain. As your business grows it is usual to develop a vast sea of smaller suppliers to support your ongoing operations.

High volume, low value transactions need to be controlled for maverick spend and minimise associated processing costs.

Although it can seem overwhelming, understanding your tail end spend enables significant cost saving, efficiency improvement, consolidation, and better contract management.

If you are part of a larger organisation or have multiple sites, understanding tail end spend enables the creation of shared services and centralised consolidated negotiation.