Tail spend refers to a group of low-value purchases that a company makes with a large number of suppliers, but each supplier only accounts for a small percentage of the company's overall spend. These purchases are typically for items or services that are not core to the business and are often unmanaged or poorly managed.
While each individual tail spend purchase may be small, collectively, they can account for a significant portion of a company's total spend. Managing tail spend is becoming increasingly important for companies as they look for ways to reduce costs and increase efficiency. By consolidating suppliers and optimizing procurement processes, companies can reduce the number of suppliers they work with, negotiate better pricing and terms, and improve spend visibility and control.