One of the reasons that tail spend continues to plague procurement is its complexity. The high number of low-cost transactions is just the beginning of the challenge. This spend often finds its way into the tail through multiple ‘wrong turns,’ each of which requires a different approach by procurement and a correspondingly different resolution. There is no one ‘cause’ of tail spend and therefore there is no one solution.
Companies that have mature tail spend programs leverage automation wherever possible and then dedicate a formal lead or tail spend manager to the effort. This person can ensure that each type or category of tail spend is addressed or reduced - ultimately generating an ROI that includes both savings and risk mitigation.
On September 28th, we will be joined for an AOP Live session featuring Jean-Baptiste Anne, Head of Enterprise Sales and Professional Services Teams for Amazon Business, and Vishal Patel, VP of Product Marketing at Ivalua. They will answer your live questions about