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Managing the “Long Tail” of Spend: Free Up Money & Valuable Resources (Proactis)
Thursday, February 26, 2015, 10:00am - 10:45am
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Many organizations find that approximately 80% of spend is covered by 20% of suppliers, and conversely, 20% of spend is comprised of a ‘long-tail’ of suppliers (80%), each with progressively smaller amounts of spend.
The tail-end of spend is often a large untapped area for cost savings, efficiency gains and risk mitigation opportunities.
By focusing on this area of spend, Procurement and Finance can determine strategies that will deliver significant savings in terms of reduced unit prices and process improvements – both of which free up money and valuable resources
In this webinar, we’ll explore the different types of tail-spend (misclassified items, low price-high frequency items, maverick spend, etc.), look at the typical challenges faced, and focus on the strategies and tools needed for extracting savings.
- Maximize savings and minimize the total cost of procurement
- Co-ordinate and aggregate purchases across the organization
- Cut down on ‘maverick’ and ‘off-contract’ spending
- Reduce the number of invoices that need processing
- Eliminate administration of managing supplier information