Tuesday, November 11, 2014

Tail spend

Tail Spend is the lower end of expenditure that businesses make.Roughly speaking what is described as ‘Big Spend is 80 % of spend being with 20 % of suppliers. So that means high amount of spend with a low number of suppliers.

The opposite of this scenario is called ‘Tail spend’. This is where 20% of your expenditure is made with with 80% of your suppliers 
Tail spend. Tail spend is a major challenge as well as an opportunity for businesses as it can involve a lot of suppliers, which means it can get out of control and requires a greater management effort. That's what blurgroup can help with.

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