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Optimize tail spend

Controlling tail spend is a complex issue due to the very nature of these one-off purchases. Yet they represent the largest portion of a company’s transaction costs, often between €100 and €250 per order. In this document, we explain to you what is tail spend and how to optimize them.

optimize tail spend

Tail spend can be optimized

Tail spend is a complex issue due to the very nature of these purchases. They are fragmented over numerous product and service purchasing families, and are managed for the most part by users scattered throughout the company. They are also costly in terms of administrative management. These are purchases that are not related to the company’s direct activity. For example, for a car dealership, the purchase of office equipment, supplies or hygiene products do not fall into the category of strategic purchases for the company. Finally, tail spend expenses remain difficult to manage and control, due to their complex, fragmented and non-strategic nature. Through this document, we present you how to optimize your company tail spend.

What you will find in this document:

1

Levers of gain

2

Realization of an internal diagnosis of tail spend

3

Ways to optimize tail spend

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