New Paper Outlines Nuisance Spend, Tail Spend, and How to Address These Issues

Tail spend, as it is narrowly defined, does not include the entire bulk of “nuisance” spend that many companies must endure. In a new research paper titled “Re-thinking and  Re-claiming ‘Tail Spend,’” Chief Research Officer Pierre Mitchell delves into the importance of process design, proper tools, and flexible resourcing models.

Here’s an excerpt: “The idea of ‘tail spend’ doesn’t seem very complicated at first. Run a pareto analysis on your spend categories and suppliers to make a cut off at, say, the 80 percent that represent only 20 percent of your spend. Your numbers will of course vary, but the idea is to find a way to better manage such ‘nuisance’ low-dollar spend that doesn’t detract from your efficiency, or worse yet, from spending time managing the truly strategic spend categories more deeply.” Read more.

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