Tail Spend expenses of a purchasing department refers to the 50% of transactions non-strategic (representing only 5 per cent of the value of purchases) that are not managed, usually due to a high volume of suppliers and a limited number of internal resources to manage them.
In fact, many of these transactions are too trivial or infrequent to be handled by the Internal Buyers in charge of strategic sourcing. Effective management of category C purchases represents a great challenge, but also an opportunity for many purchasing services. Improving process efficiency and better allocation of resources and time, C categories can lead to savings significant and a better return on investment across the enterprise.
Thanks to our solution Sourcing Force, we help you take advantage of our services of supplying optimized to take advantage of the many benefits of managing your Tail Spend expenses more effectively. By using our extensive supplier network, as well as our technology and strategic sourcing solutions, you can optimize all transactions associated with one-time expenses. This means significant savings in time, resources, and costs for your business.
Sometimes we can buy directly from the OEM, without going through the distribution network or the system integrator of an item. For example, we saved 49% on a mercury lamp from a photolithography repeater photo by buying the item directly from the lamp manufacturer, rather than from the company that made the photo repeater.
In general, a one-time purchase for you is a strategic buying for us, and you benefit from the savings. For example, we saved 14% on three units of a logical analysis system by leveraging our relationship with the largest manufacturer of test and inspection equipment.
Category C purchases have a relatively low value, they may require a large number of suppliers, and they generally do not offer significant differentiators for your business. Our teams of buyers and suppliers manage these purchases for you, thus reducing your supplier integration and maintenance costs.
Your procurement staff can therefore focus on value-added projects, while offering savings thanks to our optimized prices. We're replacing hundreds of smaller suppliers, and you get the benefits associated with lower procurement costs, faster response times, and better supplier prices.
Our on-site service is a truly unique component of our offer procurement outsourcing. Our procurement experts position themselves as an integral part of your extended purchasing organization and interact with your stakeholders to achieve significant savings. Without changing the fundamental nature of your business or the critical supports you need, we help you identify and implement the best procurement processes to save money on a wide variety of items and products.
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Sourcing Force's procurement outsourcing service has existed since 2012, and acts primarily as an extension of the customer's procurement department.