SDI International’s Brendan Curran and Joaquín Morales discuss empowering procurement innovation and the importance of effective tail spend management. Plus, how its Master Vendor programme transforms the function
In a world of greater complexity and risk, technology adoption and digitalisation, and an ever-evolving compliance and regulatory environment, procurement teams still grapple with a constant challenge: cost reduction. Which is why tail spend management – often overlooked and unmanaged while procurement focuses its attention on strategic, high-spend categories – is so important. Taking effective control of costly, one-off buys and high-volume, low-value purchases involving numerous suppliers can deliver 5% to 10% of cost savings.
But tail spend, by its nature, is complicated. It requires significant focus to effectively manage high volumes of data, often has a perceived lack of strategic importance. Tail spend lacks visibility, involves vast numbers of transactions and many product categories. It can also bring potential compliance risks because of poor onboarding processes or inconsistent terms and conditions.
Tackling the problem can be hard. But, according to SDI International, it doesn’t have to be. The organisation, one of the world’s largest diversity and woman-owned procurement outsourcing and technology providers, delivers industry-leading holistic tail management solutions. Based on a successful formula SDI simplifies, digitalises and innovates. Its Master Vendor programme provides procurement teams looking to tackle their tail. It offers a one-stop solution that leverages the latest technologies. Its solution handles supplier onboarding and on-time payment, and manages the entire tail supply chain, stakeholder servicing and escalations. The result is a procurement department better able to drive cost saving, efficiencies, and more strategic outcomes…
