Tail-spend Management

Reshaping the future of tail spend

Given the ongoing economic challenges and the emphasis on cost reduction, the most rapid and fruitful opportunities for savings can often be found in the realm of indirect and MRO spending, an area that has historically seen less scrutiny compared to heavily negotiated critical material purchases.

75% of a company's tail spend is purchased online

B2B market statistics show that 75% of all tail spend goods are purchased online or in a multi-seller store such as Amazon Business and eBay Business Supply. B2B online purchases will keep increasing, consequently, to harness the full potential of online procurement, buyers must ensure appropriate processes and technology within their operations.

5 to 20% savings on P2P costs remains untouched

Managing tail spend remains a headache when there is no PO to match, missing receipts, lack of budget approvals, or preferred supplier selection and price negotiation upfront. We see that the ideal tail spend process combined with a correct categorization can already save 5 up to 20% in procure-to-pay costs for indirect materials.

Average cost is between €100 to €500 per supplier

Dealing with a large number of suppliers causes labor-intensive data management for low-value or one-time vendors and often leads to unnecessarily high costs. A recent study evaluated the average annual cost of vendor data management to vary between €100 to €500 per supplier, although the level of data accuracy may still be low.

Current challenges:

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Transforming non-strategic spend into value streams

Bring your tail spend under management

Typically, tail spend involves a vast number of transactions, many product categories, and a huge, largely anonymous, supplier base. Many suppliers will only be frequented once or twice per year and might become inactive afterwards, but procurement has no option to suggest better alternatives since there is no formal requisition process in place. With Q-Card we can provide upfront visibility and control, streamline and automate the process, rationalize the number of suppliers and facilitate spend compliance.

To maximize adoption and use case coverage, we leverage widely accepted virtual payment card schemes like Mastercard® and Visa®, as well as wire transfers via Banking-as-a-Service. Simplify your procurement landscape today and enjoy the benefits of a more efficient solution for tail spend management.


Business Case Workshop

Do you want to save costs and leverage the full potential of bringing your tail spend under management? Book a complimentary workshop today and run a profound exercise with each stakeholder to see in which spend categories you can start saving money. 

How the efficacy of digital continues to grow

Discussing digitalization in procurement today

“As with many corporates, we see a large variety of small indirect and direct purchases in different parts of the organisation, leading to inefficient processes and various payment methods. We are happy to kick-off this project together with Q-Card and modernise our tail procurement with such an intuitive and flexible solution, that will be fully integrated with out finance system."

Job Verkerke
Chief Procurement Officer

Our approach

We integrate with any ERP or accounting solution

Instant control over your finances

Our approach involves a lean and agile business process that streamlines the integration and monitoring of targeted tail spend expense categories, all while adhering to your company's accounting policies. By incorporating flexible coding and pre-approval rules, companies can expand their spend under management and empower budget holders. This eliminates the need for cumbersome after-the-fact processing of expenses, and manual ERP vendor master and purchase order creation, and avoids lenghty purchase requisitions. Moreover, it provides effective control through a globally compliant and integrated payment platform.

Article 10 Minutes of reading

CPO Strategy - Issue 41

Heijmans & Q-Card: Constructing Procurement

Heijmans developed an influential relationship with the Q-Card App at the beginning of 2023. The firm opted for Q-Card's virtual cards to bring their spend under management. By adding Q-Card to its 2023 digital agenda, Heimans is extending its P2P process, improving upfront visibility and cost control for a wide range of indirect spend categories throughout multiple departments. 

Keep exploring

Do you also have too many suppliers?

Bring your tail spend under management

Simplify your procurement landscape today and experience the benefits of a leaner, more efficient solution for tail spend management. Contact us now to run a business case on your spend categories and learn how Q-Card can transform your day-to-day operations.