Author Archives: Chirag Shah, Simfoni



What Exactly Is in the Tail Spend?

BuyerQuest

At a headline level, I think most procurement folks are now familiar with the concept of tail spend: the low-value spend items that are non-core but still essential to the smooth operation of an organization. And of course, as the segment matures, even the tail itself comes under greater scrutiny or micro-segmentation with expressions such as tip of the tail, tail of the tail, mid-tail, tactical spends, spot buys, catalog buys, guided buying, “precision buying” (Simfoni’s own attempt to join the party!) and so on.

So what exactly are we talking about in terms of the items that fall under all these different expressions? In this article I’d like to offer a simple model that describes the types of spend that reside within the tail spend category, and propose the optimum technique for how best to address each one.