Optimise tail-end spend

and gain control over your IT procurement

Tail-end spend refers to the smaller, high-volume transactions that account for about 80% of procurement activity but only 20% of overall spend. These purchases often include spot buys, low-value orders, or unplanned expenses.

Why Tail-End Spend Matters

Tail-end spend, if left unmanaged, can lead to uncontrolled purchasing as buyers deviate from established procurement contracts, resulting in fragmented orders that miss opportunities for bulk discounts.

Additionally, the decentralised nature of such spending creates a lack of visibility, making it difficult for organisations to track and control expenditure effectively.

The Impact of Unmanaged Tail-End Spend

Tail-end spend poses several challenges for organisations:

Lack of Data Visibility

With numerous small transactions spread across departments, tracking and understanding overall spend becomes challenging.

Maverick
Spending

Unmonitored buying behaviour results in purchases outside of approved contracts, significantly inflating costs.

Supplier
Sprawl

Managing an excess of suppliers for low-value purchases creates unnecessary inefficiencies and added complexity.

Missed
Savings

Failure to consolidate purchases prevents organisations from benefiting from volume discounts and lower pricing.

Time
Inefficiencies

Procurement teams spend too much time on smaller transactions, tracking orders, and resolving delivery issues, reducing focus on strategic goals.

How Our Procurement Platform Helps

Our Procurement Platform provides a powerful solution to tackle tail-end spend, offering tools to consolidate suppliers, enhance visibility, and enforce governance with ease.

With the Probrand Procurement Platform, organisations can centralise control and streamline processes. Features like order consolidation, supplier rationalisation, and automated workflows drive cost savings and operational efficiency.

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Tail-End Spend Analysis

Tail-end spend analysis allows procurement teams to gain visibility into smaller transactions and uncover hidden savings opportunities. The Procurement Platform assists spend analysis, helping to:

Identify trends

Identify suppliers or categories driving unnecessary costs & take control of your spend.

Classify spend

Analyse & address rogue, unmanaged, and maverick spending across departments efficiently.

Highlight savings

Combine orders or switch suppliers effortlessly to secure better pricing and volume discounts.

Search & reorder

Reorder quickly by searching for previously purchased products and adding them to your basket.

Build product lists

Save time by adding tail-end items to customised lists for faster, repeated purchases.

Pricing Entitlement System (PES)

Our Pricing Entitlement System (PES) allows for pre-agreed pricing on tail-end products, potentially offering discounted rates.

With PES, users can avoid negotiating prices each time, ensuring a faster and more efficient purchasing process.

Supplier Rationalisation and Risk Reduction

Managing a large number of suppliers increases risk and inefficiency.

Our Procurement Platform enables organisations to:

Reduce supplier sprawl

Manage fewer, more trusted suppliers with negotiated terms.

Control rogue spending

Ensure that all purchases go through pre-approved suppliers.

Improve compliance

Limit purchasing to vetted suppliers, reducing fraud risks and ensuring adherence to company policies.

Benefits of Tail-End Spend Management

Effective tail-end spend management through the Procurement Platform offers:

Cost
Savings

Automated discounts, vendor promotions, and price comparisons help reduce costs on every transaction while driving overall savings.

Increased
Efficiency

Streamlined order tracking, invoicing, and detailed order history simplify managing high-volume orders, saving time and cutting administrative tasks.

Risk
Reduction

Minimise exposure to unapproved suppliers, ensure compliance with contracts, and reduce the risks of unethical purchasing.

Improved
Satisfaction

User-friendly tools and intuitive processes simplify procurement for internal teams, improving their experience and overall satisfaction.

Frequently Asked Questions

What is tail-end spend?
Tail-end spend refers to smaller purchases that make up 80% of transactions but only 20% of the total spend.

How does Probrand's Procurement Platform help with tail-end spend management?
Probrand's Procurement Platform provides governance, consolidated purchasing, and cost-saving opportunities for tail-end spend.

What cost savings can be achieved?
Automated discounts, live pricing, and vendor promotions help reduce costs, even on small-value purchases.

How can I identify my organisation's tail-end spend?
Start by analysing your procurement data to determine which transactions account for 80% of purchases but only 20% of total spend.

What role does data visibility play in managing tail-end spend?
Data visibility allows procurement teams to track and consolidate purchases, ensuring better governance and cost control over smaller transactions.

What types of purchases fall into tail-end spend?
Tail-end spend includes one-off purchases, maverick or rogue purchases outside contracts, purchasing card buys, and e-catalogue spend.

How can Probrand's Procurement Platform help reduce rogue spending?
Probrand's Procurement Platform creates user-specific catalogues and purchase limits, ensuring purchases are made from approved suppliers and within contract terms.

Want to find out more?

See how the Procurement Platform can transform your tail-end spend management.

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Learn more about Tail End Spend with these helpful resources.

Getting to grips with tail spend

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