Tail Spend

Tail Spend

Tail Spend

76% of procurement leaders who participated in a recent study* said that increasing spend influence was either a major or critical objective for them. It was identified as a critical development area. This means tackling long tail spend is now high on the agenda of procurement leaders. Long tail spend can be defined as all spend that is not strategically managed or under-management.  This means any spend under the involvement limit and without a contract framework agreement or negotiated work order. In organizations that have invested significant effort into strategic category management, managed spend tends to be around 80% of all expenditures, leaving long tail spend at 20%.

*The Hacket Group (2016): 2016 Key Procurement Issues Study