The Art of Tail Spend
With ASM you can reduce the number of vendors you need to work with.
With ASM you can reduce the number of vendors you need to work with.
Reduce costs, improve operational efficiencies, and mitigate risk whilst giving your teams more time to focus on core activities. We help procurement departments see the wood from the trees and salespeople can spend more time customer facing rather than supplier facing.
We work with 1000’s of vendors across the technology sector so you don’t have to.
Some of the worlds leading IT resellers, VARS and Systems Integrators have already unlocked substantial savings and efficiencies – see the improvements you could make to your business by contacting us to set up a call with an expert.
Tail spend is often defined as nonstrategic, off contract, maverick purchases with low value, one-off requirements. Lines of business now have such an influence on technology spend it has resulted in ballooning supply chains in order to procure technologies and deliver a competitive advantage. Tail spend may only represent 10-20% of the overall spend but has large amounts of suppliers accounting for it. In the technology category, tail spend isn’t just low value items.
One off, higher value purchases for specialist products, emerging technologies and disruptive products are also categorised as tail spend. These transactions typically range from £50k to £5m.
The hidden tail is where spend has been mis-categorised and is being fulfilled by non-specialist, on contract suppliers for a premium. This often creates margin on margin potential and poor performance issues as it’s not the supplier’s core business.
Tail spend is our core business. Our entire organisation is structured and designed to optimise tail spend. It’s not an upsell or just a department, it’s our key focus.
We’ll reduce costs and simplify the purchasing process for your stakeholders whilst remaining compliant. You’ll have access to a wider portfolio of products and give your team freedom to focus on strategic spend.
70% Supplier attrition in the tail, most transactions will not be repeated in 12 months’ time.
The Hackett Group suggest that supplier onboarding costs are between £3-8k depending on the organisation size.
72% of technology decisions are influenced and/or made by line of business executives. This is expected to grow to 90%. (Gartner)
In 2018 there were over 100,000 software companies across Europe. This could exceed 1m by 2024. (Gartner)
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Windsor House
Gadbrook Business Centre
Northwich, Cheshire
CW9 7TN
United Kingdom
