TAIL SPEND MANAGEMENT
Eliminate fragmented spend
At AMP Procurement, an important part of our supply chain services is Tail Spend Management; working with customers to reduce tail spend across the business as a whole. We work closely with suppliers to bring consistent service and materials to the end consumer, whilst driving down costs.
WHY IS TAIL SPEND IMPORTANT?
When it comes to optimising supply chain, it often makes sense to focus on the largest contracts.
However, Tail spend – or low value spend – can hide maverick spending, waste and even fraud, which is why many organisations are now realising the benefits of tackling it.
Tail Spend is the 20% of spending that can typically go unmanaged within companies – and yet accounts for 80% of all suppliers. This can represent the majority of transactions a large business can make, which can cover a huge range of product and service categories.
UNLOCK THE VALUE OF TAIL SPEND MANAGEMENT
Working with our clients within the defence sector, government agencies and the NHS, we’ve found that managing your tail spend can achieve:
- Cost reductions from 5% to as high as 20%
- Increase control over organisational spend
- Increased process efficiency
- Reduced risk across the supply chain
- Improved organisational compliance with procurement processes
- Increased visibility across the procurement process
- Improved management of suppliers
AMP has built a reputation with our clients of offering a value for money approach, being flexible: quick to react but also ensuring the highest standards of product quality.
We use the latest sourcing tools, best practices, tactical sourcing, and a growing supplier database – a full range of tools, to provide a highly effective buying experience to users. The result is a highly tailored solution for tackling one of your biggest sources of incremental savings available.
We work with you and your supply chain leads to bring about the required tail spend objectives in both a highly effective and professional manner.