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.
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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.
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."
Chief Procurement Officer
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.
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.