Managing low value spend

Tail end spend – also called long tail, or low value spend – is the 20% of spend that typically goes unmanaged within an organisation. This 20% tends to be low value transactions, spread across multiple spend categories, and with many suppliers. In fact, tail end often accounts for 80% of all an organisation’s suppliers. 

By using our tried and tested procurement processes across all categories of low value spend, we're able to generate significant savings quickly, throughout the supply chain. We currently deliver savings of around 8% on the value of tail spend, on top of the efficiencies we deliver from processing improvements and economies of scale.

We can also help you build a business case for change, using our vast benchmarking datasets to show how much value we can deliver.

Read our Q&A with Kieran Sullivan

How to control uncontrolled tail spend

Lack of control over tail end spending is a significant yet surprisingly unknown problem for many organisations whose internal structures have changed in recent years and have devolved procurement.

Capita’s procurement solutions business brings plain English to a complex organisational issue for companies and the public sector in our latest white paper.

Download whitepaper
Strategically managed spend

TAIL procurement service

Unlock new insights and value in your tail spend with our TAIL procurement service.

As companies mature and continue to grow, finding additional value across the procurement process becomes increasingly difficult without a higher level of detail. But there lies an opportunity. There's more in your tail than you might think, it could offer significant untapped value, and unlocking its potential is what we do best.

At Capita we think the difference is in the detail. Our TAIL procurement service helps you unlock new value from your tail spend, by enabling you to go a level deeper, providing richer insights and a better understanding of your tail.

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Contact us now to see how we can help with you tail spend!

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