This week's episode of the Source One Podcast welcomes Kelly Barner as guest host. The Founder and President of Buyers Meeting Point sits down with Source One Director Anthony Mignona to examine the value of better, more strategic tail spend management.
Organizations differs in how they define their organization's "tail." For some, it's the 80% of spend represented by 20% of their suppliers. Others employ a far broader definition and label all of their indirect purchases as tail spend. However they define tail spend, most organizations have one thing in common - they don't pay enough attention to it.
At a glance, tail spend purchases can look tactical and low value. Taking the effort to dig into it rarely looks worthwhile to Procurement teams who are already juggling a cross-functional workload. Mignona suggests, however, that these organizations could be holding themselves back. He advises listeners to rethink the way they approach tail spend and develop strategies for addressing it. It's an effort that could uncover a wealth of hidden value and help Procurement make a case for itself as an asset to the business.
Subscribe to the Source One Podcast today to hear the full conversation.