OFF-CONTRACT SPEND MANAGEMENT (TAIL SPEND)
GET CLARITY ON YOUR TAIL SPEND WITH A SINGLE SUPPLIER
Through active years of serving some of the worlds prestigious companies, we developed the single creditor model in managing your pool of C-Class suppliers.
Low value spend tend not to be actively managed. It consists of small portions of spend usually between 10-20%, but large number of suppliers are responsible. It usually accounts for 80% of the total transaction, making up about 20% of company’s spend by volume.
YOUR TAIL SPEND IN ONE PROVIDER
The 80/20 rule or the Pareto principle: Procurement departments always have more incentive to focus on large, multi-year contracts because of the larger savings realized. Yet this leads companies to basically ignore almost 20% of their budget. This unmanaged spend is a more traditional definition of tail spend and is typically considered the 80% of transactions that constitute 20% of a company’s spend, otherwise known as the Pareto principle. Some organizations may be at 70/30 or 90/10 but the pattern is generally the same.
Managing your 20% to unlock its hidden benefits is what we represent to you. Such costs are usually:
- Low value/volume
- Spot buys
Simplify your non-contractual purchases with COPS
A simple one-stop place with consolidated catalogues of trusted manufacturers bring you endless products at the press of a button.
Tail spend automated in COPS
The single tool for your entire tail spend, access to an endless list of products. This can be customized to your specification
- One supplier managing multiple (Single creditor model)
- Invoice and supplier base reduction by up to 80%
- More time for strategic procurement
- Get a grip on the overlooked cost
- Decrease internal cost up to 20%
WHAT OUR PARTNERS SAY
- Easy to implement and very convenient.
- Reduction of invoices and suppliers by up to 80%
- Ample time for strategic planning
- Control over what was ad-hoc previously
- Decline in internal cost up to 20%
ADVANTAGES OF THE SINGLE CREDITOR
- One supplier managing several vendors.
- Decline in invoice and supplier base of up to 80%
- Drop in internal cost.
- Ample time for strategic procurement.