Indirect spend, also known as tail spend, is often an overlooked issue for financial professionals. According to research conducted by The Gartner Group in 2012, “For the average company, a 5% savings on tail spend can be the equivalent of a 10% increase in profit. Eliminating Maverick spend; or ‘uncontrolled buying’, by automating indirect spend processes can result in significant cost reduction.
“Companies that better manage their tail spend will find that such efforts can have a direct impact on the firm’s bottom line.” This, according to The Reverse Auction Research Center in a published white paper, which spotlights what tail spend is, and why it is so important for companies of all sizes to focus upon today. MANAGING THE “LONG TAIL”.
Better indirect spend management means smarter processes, visibility, control, managed supplier relationship, and better prices for organizations of all sizes. Companies looking to reduce costs, improve efficiency, and maximize profitability can clearly benefit from the latest technology innovations for the indirect spend lifecycle.
At ISS Group we recognized the need for such Business Process Improvement (BPI) solutions well over a decade ago, and today, ISS Group continues to deliver to the QAD EA community Agile Business Process Improvement (BPI) solutions, such as e-Procurement, which digitize business processes to connect people and processes via the cloud, mobile devices, and social networks, for Mid-market and Divisions of Fortune 1000 Manufacturing and Distribution organizations.
STAY TUNED for an upcoming presentation on Managing Pricing Controls and Eliminating Maverick Spend…!