How Tail Spend Technology makes its significant place in Procurement?

Our country has become smart technology wise in most of the fields and so has become the tail spend technology in Procurement & Supply Chain. Things that make it unique are many but for most of the firms; the driving force behind it remains savings.

Savings, generally are very essential. When we attempt a purchase, we expect some level of saving to bring ourselves satisfaction. Coming to the terms of a company, a company works better, earns better when it has to spend less on goods and returns are more. Otherwise, there would have been no business at all. It is all about taking risks and following a well patterned and organized set of small steps that turn out big profits.

There’s no wonder that many businesses make additional savings and the secret is hidden in how it  works. Once you get to know the defects and eradicate them, there will no longer be a painful experience with business.

Tail Spend technology is very advanced and is a one-stop solution for all the woes that are responsible for the failure of a firm. The spending of the firm is optimized by putting the existing vendors into proper use. No doubt, if the firm keeps inviting new vendors every six months or four months, the stability will never be seen in the savings too. The recent contracts are negotiated again and again to ensure the reduction of costs.  Orders are accepted in bulk and this significantly reduces the volume of transaction.

Usually companies neglect the small transactions and these slowly let us loose a big saving. Instead of focusing on heavy volume transactions or the commodities that are costly or in bulk, attention is drawn to the small ones, the low-value purchases.

What’s on focus and why?

The tail spend technology’s main focus is on these low- value purchases. This enables them to look for multiple benefits, saving time and efforts. The costs eventually fall down and the staff is released from the burden of working on the activities of high value.

The experience with low transactions is really a happy one for the firms not only get additional savings but also the price drop of purchase of commodities. The firm can now spend less and save more.

Once this cycle with the help of Tail spend solution sets in motion, what it does the?

• Hardly any problem is faced by the firm.
• The deeper insight enables the eradication of evils that once prevents the good opportunities to knock .
• Simplicity in the working brings ease and positive results.
• Waste from any side is checked and using the tail spend technology a wise budget is set up.
• The procedures of the buying of commodities become easier with little or no hassle and the vendors’ focus on small than big brings multiple benefits for them and the company as well.

Spend analysis is done periodically that flashes the current list of opportunities. Sourcing through the Tail spend technology is formal and strategic. It happens in three ways :  a three vendor purchase by bidding, mini RFP or sole sourcing. Another is iterative sourcing that takes place continuously presenting improvement with its every session. The tail spend technology is sufficient to put an end to the maverick spend that eat a lot of money and time. It is beneficial from every aspect.

Contact us today to know more about how Simfoni’s technology and processes can help your organization achieve world-class Spend Analytics , Savings Tracking & Tail Spend Management Solutions