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WANT TO ENHANCE YOUR PROCUREMENT PROCESSES?

Say Goodbye to Time-Draining Non-Strategic Suppliers

We can empower you to optimise and automate low-value purchases, freeing up your time from manual and repetitive tasks.

Prioritise what truly matters – schedule a free consultation today.

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Discover How To Reclaim Precious Time for Your Strategic Priorities

Free up your procurement team’s time to focus on strategic suppliers that bring added value to your business, while saving time, reducing administrative effort, and cutting costs. With our expertise, you can mitigate risks and drive efficiencies in your procurement processes.

Tail Spend Management in a nutshell

Tail spend management refers to the practice of actively managing and optimising the low-value, high-volume transactions that take place within an organisation.

It involves consolidating the 80% of suppliers in your supply chain that only make up 20% of your procurement spend.

Some common terms used include: Non-strategic spend management, Maverick spend control, Indirect procurement optimisation, Low-dollar spend consolidation, Tactical sourcing management, etc.

No matter how you refer to it, our tailored solutions can help you effectively address these challenges and achieve optimized procurement processes for your business.

The power of Tail Spend Management

By implementing tail spend management strategies, businesses can effectively control and streamline their tail spend, leading to improved financial performance and operating margins.

This approach involves identifying maverick or unmanaged spending, centralising supplier relationships, and implementing processes to gain visibility, control, and cost savings.

Taking a proactive approach to tail spend management enables organisations to optimise their procurement practices, reduce costs, mitigate risks, and enhance overall performance.

Top 5 risks you cannot afford to overlook

Don’t gamble with your company’s future. Ignoring the importance of tail spend management can pose significant risks to your business. Here are the top 5 risks you should be aware of:

1. Inefficient processes:

Ignoring tail spend can lead to inefficient procurement processes. Fragmented supplier relationships, manual and time-consuming tasks, and disparate systems can augment complexities in managing your procurement operations. This inefficiency slows down your operations, hampers productivity, and can negatively impact your bottom line.

2. Lack of visibility:

Neglecting tail spend can result in a lack of visibility into your procurement activities. This makes it difficult to track spending, identify potential areas of waste, and make strategic decisions based on data-driven insights. Without visibility, you may be unaware of hidden risks or missed opportunities.

3. Supplier non-compliance:

Without proper management, your tail spend may expose you to risks associated with non-compliant suppliers. This includes issues related to quality control, certifications, labor practices, and environmental sustainability. Non-compliance can lead to legal and reputational consequences that can harm your business.

4. Increased costs:

Without effective tail spend management, you could be overspending on low-value purchases. Dispersed and uncontrolled tail spend can lead to higher procurement costs, missed opportunities for savings, and inefficient use of resources.

5. Missed sourcing opportunities:

Neglecting tail spend can result in missed opportunities for strategic sourcing. By not actively managing your tail spend, you run the risk of overlooking potential suppliers who could offer better pricing, improved quality, or innovative solutions. This can hinder your ability to stay competitive in the market.

Experience the Top 5 Benefits of Tail Spend Management

Streamlined procurement processes

Tail spend management streamlines your procurement processes, reducing the time and effort spent on manual tasks such as supplier onboarding, contract management, and invoice processing.

Automation and standardised workflows enable faster decision-making and more efficient operations.

Enhanced supplier relationships

By handing the management of your tail spend to CXC, you can focus on building stronger relationships with your strategic suppliers.

Consolidating your supplier base allows you to negotiate better terms, drive volume discounts, and incentivise suppliers to provide higher quality services or products. This can lead to improved supplier performance, increased collaboration, and ultimately, better outcomes for your business.

Risk mitigation

Managing tail spend helps mitigate risks associated with supplier performance, compliance, and sustainability.

By choosing reputable suppliers, monitoring their performance, and ensuring compliance with regulations, you can minimise the risk of disruptions and reputational damage to your business.

Cost savings

By effectively managing your tail spend, you can achieve significant cost savings.

Tail spend typically represents a significant proportion of a company’s overall spend, and by optimising processes, consolidating suppliers, and leveraging data analysis, you can reduce costs and improve your bottom line.

Visibility and control

Tail spend management provides you with enhanced visibility and control over your procurement activities.

By centralising your tail spend, you can gain a clear understanding of your purchasing patterns, identify potential areas of waste, and implement strategic sourcing strategies.

Can You Afford to Waste More Time on Non-Strategic Tasks?

In business, time is a precious resource. As procurement professionals, your strategic tasks and relationships matter greatly. That’s why implementing efficient tail spend management is crucial. By streamlining your procurement efforts, you can save valuable time and redirect your focus towards the tasks that truly drive your organisation forward.

We can empower you to optimise and automate low-value purchases, freeing up your time from manual and repetitive tasks.

With our streamlined processes and technology-driven solutions, you can swiftly navigate procurement operations, allowing you to dedicate your energy to strategic decision-making, building strong supplier relationships, and driving overall business growth.

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Say Hello to Business Efficiency and Profitability with CXC

Implementing effective tail spend management can unlock these benefits and more, enabling you to optimise your procurement processes, reduce costs, and drive sustainable growth.

Our tailored solutions are designed to help you harness the full potential of tail spend management and achieve maximum value for your business.

Ready to Make Procurement Fun Again?

Let us help you regain control of your time. – Book a consultation today and start simplifying your day-to-day operations for a smoother, more enjoyable work experience and improved business performance.