Tail Spend Management

Presented by:

Vatsal Deladia (20181017)

Kaushik Patel (20181021)
Bansi Kotecha (20181022)
Shubham Likhite (20181024)
Nitin Joshi (20181036)
Utsav Patel (20181040)
 What is Tail Spend?

• Millions of purchases that are too small to be handled by procurement or

too infrequent to be included in catalog systems

$50000-
$2,000—
$1M <$2,000
$200,000
 Why Tail Spend Management ?

Effective
Spend coverage Process
management of
and savings Optimization
Spend
Benefits of TSM
TSM Process
Sourcing Structure for TSM
2*2 Matrix
 Segment Specific Considerations

Head of Middle of Tail of the

Hidden Tail
the Tail the Tail Tail

Automa- Alternate
Task Force Task Force
tion Channels

Supplier Self
New Spot Buy
Consolida service
Contracts Desk
-tion Systems

Mitigation
Measures
Segment Specific Considerations
Case Study : TSM for a Global Electronics Firm

Challenge Objective Solution Benefits

Indirect Spend Tail spend of

10-15%
Spend - € 6 Coverage & € 1.1 Billion
savings
Billion Savings identified

Process Reduce off Additional

70,000+ Improvement contract volume
Suppliers & spend discounts
Optimization
Process
Consolidation
Harmoniza-
of suppliers
tion

Shift Reduction in
Purchasing or maverick
Negotiate spend
 Conclusion

Identify Deploy Implement

Segment
your Tail TSM specific
Spend Process Solutions