Updated November 2024:

AMP Procurement are pleased to share the Cyber Essentials Plus Accreditation has been renewed for another year from November 2024-2025.

AMP Procurement are delighted to announce that they have achieved Cyber Essentials Plus Accreditation as part of our ongoing commitment to being cyber safe. We have been working with our IT and Security partners over the past 12 months to achieve this.

Cyber Essentials Plus is a UK government information assurance scheme operated by the National Cyber Security Centre (NCSC) that encourages organisations to adopt good practice in information security. It includes an assurance framework and a set of security controls to protect information from threats coming from the internet.

AMP Group Ltd have been accredited by IASME Consortium – the Cyber Essentials Partner of the UK government’s National Cyber Security Centre (NCSC.)

Group Managing Director Martin Peacock said he was really pleased with the result and advised that this demonstrates AMP’s commitment to maintaining the highest level of Cyber Security.

“We deal with Classified information on a daily basis for clients such as Babcock International and BAE systems, this accreditation shows our commitment to securing our IT systems against malicious attacks and protecting our customers data, helping to future proof the business.”

AMP’s core business is centred on procurement predominantly in the Defence Sector and by achieving this shows our continuing commitment to improving our internal processes to achieve the best results for all our clients.

Thank you to all the team involved for their help, Chris Scott & Glen McKnight of Lighthouse IT for a painless audit.

Here you can find all of our Policies and Certifications.

Tail spend refers to the small, low-value purchases that collectively make up a significant portion of a company’s procurement spending. Although each individual transaction may seem insignificant, this can add up quickly and have a substantial impact on the company’s overall expenses.

By focusing on reducing this tail spend, the company aims to generate cost savings and streamline procurement operations.

Data Analysis and Categorisation

To effectively manage tail spend, start by analysing procurement data to identify tail spend categories and their corresponding suppliers. Categorise expenses based on their nature, frequency, and total spending to prioritise which areas to target for cost reduction.

Supplier Consolidation

With a clear understanding of the tail spend categories, consolidate the number of suppliers used for similar items. Reducing the number of suppliers can lead to improved pricing and easier contract management.

Negotiate Better Terms

Negotiate favourable terms and conditions with the chosen suppliers to secure better pricing, discounts, and extended payment terms. By leveraging the company’s total spending potential, the company can negotiate more effectively, resulting in additional cost savings.

Employee Education and Policy Compliance

Educate employees about the importance of adhering to the company’s procurement policies and guidelines. Emphasize the significance of purchasing from approved vendors and discourage rogue spending. Encourage employees to submit purchase requisitions through the e-procurement platform to enhance visibility and control over tail spend.

Continuous Monitoring and Improvement

Implement a robust monitoring system to track tail spend regularly. Analyse spending patterns, identify potential cost-saving opportunities, and make data-driven decisions. Continuously review and adjust tail spend management strategies to adapt to changing business needs and market conditions.

These 5 steps are a great start for managing tail spend, but it is a long and time consuming process which is not always easy. Tail Spend Management is often overlooked as a priority due to the time commitment and the lower cost of tail spend purchases, but in the long run it is worth tackling.

Tail spend management can be time consuming for teams, especially considering the continual review and analysis to fully benefit. It is possible to outsource to procurement specialists who will be better able to negotiate with suppliers and already have policies and quality standards in place.

Manage Tail Spend Example

As an example, we will imagine a medium-sized company that regularly procures office supplies for its various departments trying to manage tail spend more effectively. The finance department identifies that a significant amount of tail spend is allocated to office supplies, such as stationery, printing paper, etc.

Data Analysis and Categorisation: Office supplies are identified as a key tail spend category.

Supplier Consolidation: The company decides to work with a single vendor or a limited number of preferred suppliers for office supplies.

Negotiate Better Terms: Using a sole vendor, the company can then negotiate better terms such as volume-based discounts and develop a better relationship with the supplier.

Employee Education and Policy Compliance: Employees will now follow a process when purchasing office supplies ensuring the correct vendors are used, discounts are applied and purchases are consistent across the company.

Continuous Monitoring and Improvement: The finance team will compare results before and after implementation to note any significant changes. Further improvements will be made for other departments, further discounts and terms will be negotiated and the process will continue.

This example can be applied to many businesses across all industries and sizes, the core principles remain the same. If you have any questions about tail spend management or are interested in working with tail spend specialists you can contact us.

The opposite of tail spend is Strategic spend, where businesses spend more of their budget on less of their suppliers. Strategic spend is heavily monitored and discussed, as these are key business decisions, whereas tail spend will usually have opportunities for improvement as it is monitored less, such as office supplies.

Businesses may find tail spend difficult to manage due to the large number of suppliers. Combine this with the relatively low cost per transaction and you will find why this is often overlooked. Due to being overlooked this will mean a large amount of money will be wasted over time.

The low cost per transaction and difficulty to manage mean it will often be seen as less of a priority than strategic spend. Resulting in unnecessary spending happening due to mismanaged tail spend, but this also offers an opportunity to control your tail spend and gain a competitive advantage.

If tail spend is not properly managed, then problems that may arise:

Overspending for Products: Just because the value of the item is small, does not mean that the cost should be ignored. As this will make up 80% of suppliers, this will quickly add up to a significant cost to the business if not monitored.

Wasted Time and Effort: By not having processes in place, time and effort can be wasted by teams sourcing products which could be better spent elsewhere.

Quality Issues: If proper research is not done, purchases may not meet strict quality assurance requirements. This would mean time is wasted re-ordering to adhere to quality standards and could negatively affect the business and their reputation.

Managing tail spend is important in order to reduce wasted spend, save time and resources for the company but how do you actually manage tail spend?

How to Manage Tail Spend?

There are many ways to manage tail spend, it can be recommended to use a combination of techniques to maximise effectiveness:

Tail Spend Analysis: The most important way to highlight potential issues is to undertake a tail spend analysis. Audit how and when you are spending, look closely at all spending under a certain monetary value which may otherwise be overlooked and analyze if there are potential savings here. Are additional hidden costs sneaking in? Such as having to order and re-order if the original order is not compliant.

Categorization and Classification: Categorize and classify all purchases to identify which fall into the tail spend category. Using a data-driven approach allows you to understand the specific areas and suppliers contributing to tail spend. With this information, you can set priorities for improvement, renegotiate contracts, and consolidate purchases to achieve better pricing and terms.

Outsource Procurement: Using procurement specialists to manage tail spend will shift the burden to the experts to mange suppliers and negotiate terms and prices. This will reduce suppliers in your internal systems and allow your business to focus on core activities. The Boston Consulting Group state “a company that focuses entirely on tail spend is probably able to optimize savings and has better economies of scale than others”.

Understanding and effectively managing tail spend is a key part of the procurement processes. Tail spend represents a significant opportunity for cost reduction, supplier consolidation, and process improvement. Understanding tail spend allows you to take control of your spending and turn it into a source of competitive advantage by removing excess costs.

With the right approach and the expertise of procurement specialists you can reduce costs, enhance supplier relationships, compliance, and overall operational efficiency.

Ryan McGill joins the AMP Group as the new Digital Marketing Manager for both AMP Procurement and AMP Power Protection.

Ryan graduated with a BA (Hons) in Marketing from Glasgow Caledonian University in 2017 and started work in the life science industry. Ryan joins us with a wealth of experience across multiple marketing disciplines and industries and will be responsible for social media, communications, the design and production of marketing materials, reporting and more.

Outside of the office Ryan is a member of his local chess club and competes in tournaments and league matches.

Ayan Mohamed joins the AMP Procurement team as an administrative assistant. She brings valuable administrative experience from her previous role in the mortgage industry, where she developed her customer service skills through client interactions. She is responsible for processing orders, liaising with customers and suppliers, and assisting the accounts team with payment processing to ensure smooth operations.

We wish all the best for the two new starts as they have quickly made themselves at home in the office and proved to be assets to the team.

The contract for the Batch 1 ships manufacture was awarded to AMP Power Protection June 2017 and has been hugely successful.

BAE Systems provided the outline specification and requirements which allowed AMP Power Protection to design and build the best technical and commercially viable UPS Power Package to fulfill the brief.

Delivery of the equipment will be throughout 2023.

AMP Group MD, Martin Peacock said: –

“We are very proud to be associated with this project. The UPS is a critical part of the Type 26 Infrastructure, which will add capability and resilience to the second batch of ships.

We have previously worked with BAE Systems during Batch 1, where we manufactured and supplied UPS Systems that were professionally designed to ensure we met all of BAE’s requirement. The UPS’s we have manufactured will operate safely, effectively, and efficiently within the battlespace environment ensuring the safety of our Royal Navy Personnel.

We are looking forward to delivering these to our client throughout this year and further developing our relationship with BAE in years to come.”

A smooth and constant flow of goods is the trademark of a healthy supply chain.

Disruptions in supply can have serious consequences for the entire organization, both in the short term and the long term. It could lead to a reduction in production, delay in the delivery of goods, a loss of reputation, or other severe consequences and increased costs.

One of the foundations of effective procurement is supplier management. It involves identifying reliable and credible suppliers and nurturing long-term relationships with them.

This has multiple benefits, such as rebates and other cost reductions, along with improved communications, resulting in a decreased chance of disruption in the delivery of goods. 

Please contact us on 0141 406 3154 or info@ampprocurement.co.uk for more information on our current stock, or visit https://www.ampprocurement.co.uk/tail-spend-management/

We understand how important it is to increase your cashflow in regards to operating a successful business. Business managers and entrepreneurs can increase cash flow with already-existing assets through the implementation of innovative supply chain strategies, according to Lisa Anderson, founder and President of LMA Consulting Group, Inc.

“In today’s new normal business environment, cash is king, yet traditional methods to increase cash flow are not working,” said Anderson, who works with executive leaders and management teams to transform people and process into profit.

“When weak sales growth is considered stellar performance and customers are demanding increased service and value for their money, innovative strategies are required to succeed. These supply chain strategies provide readers with a practical approach for increasing cash flow through supply chain improvements.”

Reach out to us today if you believe our services can help your organisation achieve success.

You need it. We get it.

Andy joined the AMP team in November 2022 as our Warehouse & Procurement Technician.

He is heavily involved in looking after the warehouse facility and ensuring all quality checks are in place coupled with being an instrumental part of the procurement team.

As an ex professional footballer and small business owner, he brings a great set of skills to the team. Andrew enjoys spending his free time with his wife, and two teenage sons.

Warehousing and Total Quality Control

AMP Procurement have built a reputation for efficiency and reliability. Warehousing is essential, we understand the critical need for the product lines to be delivered not just on time but correct and with documentation that is complete.

Our 2500sq’ warehousing facility in Central Scotland facilitates storage of product lines to be called off for projects for ‘in time’ and ‘just-in-time’ delivery, and also operates as our quality control hub. We never assume correctness in the product or documentation and have developed a quality process that makes certain lines arrive seamlessly and correct for every order.

Our team are trained to understand key client requirements and empowered to make decisions and intervene when required, creating a procurement service with pride built within its foundation.

Lewis is our new Digital Marketing manager, and will look after all our marketing channels, as well as being heavily involved in the sales side of the business. He holds a degree in Business and Marketing and has a wide range of skills specialising in digital marketing.

He is family orientated and spends most of his free time with his fiancé and his baby girl. We hope your enjoying your first few days and welcome to the AMP Team!