BLOG

Is Managed Services the Optimal Solution to the Tail Spend Problem?

Oct 10, 2017

Tail spend can be a nuisance to deal with, as it comprises of multiple low-value spends which have to be managed with valuable organizational resources. The time that could be utilized for strategy formulation is consumed by a tedious process of tail spend management. It all starts with the needs of the end consumer within the organization and then guiding them to accomplish their goal within the company policy. There are few alternatives available to them in order to take care of their tail spends, outsource the process, use managed services, or turn towards technology.SE_Demo2

Outsourcing
Outsourcing has been the norm across all organizations in the developed parts of the world. However, outsourcing the tail spend results in the process being managed by new resources. Such a shift usually involves a learning curve that can slow production, incapable resources, or incompatible technology. Finally, outsourcing agents may not possess industry-specific knowledge or expertise that results in inefficient spend management.

Technology
Various ERP systems have burst onto the scene in order to curb the tail spend in an organization. Organizations are increasing their dependency on eProcurement tools, P-cards, helpdesk, and automation to leave the hassle of tail spend up to technology. Technology can assist tail spend management program in a proactive, reactive, or iterative manner. For instance, by studying existing contracts and spend analysis of ERP data organizations can proactively identify savings opportunity. However, enabling technology to take care of tail spend requires a huge commitment in terms of finances and other resources.

Managed Services
Organizations opting for managed services can perhaps be the best option to control their tail spends. Managed service providers are experts who provide technical expertise and service consistency and flexibility across multiple vendors, geographies, and technology. They can help with the overall operations using existing organizational resources to reduce overheads and improve efficiency. Managed services provider offer an extensive suite of services that includes managed collaboration and productivity services, managed CX services, and multi-vendor management. Managed service providers can identify the problems faced by the organization and redefine policy changes, increase service level expectation, reclassify category spend, reduce maverick spends, and consolidate spend management by centralizing it.

Organizations can take better control of their tail spend by turning towards managed service providers who use technology to segment spends to analyze how buying performance (cycle time, savings, etc.) is affected by different input variables (business unit, source system, spend type, among others). Managed service providers using such technologies can help achieve high levels of savings in tail spend by monitoring the spends and automating tasks.

For more information on how organizations can curb tail spend using managed services:

Get More Info

Related Articles:

Recent Blogs

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars