Tail spend management for procurement teams

Tail spend and C-suppliers: frequently asked questions

What is tail spend?

Tail spend is the large group of small, non-strategic purchases that fall outside your main contracts. It is spread over many C-suppliers and accounts for most of your suppliers and invoices, but only a small share of your total spend, which makes it expensive to manage.

What are C-suppliers?

C-suppliers are the many small suppliers you buy from occasionally, often for C-parts, one-time purchases or spot buys. They make up the bulk of your supplier base but only a small part of your spend. Spot Buy Center replaces them with one supplier and one single creditor.

How does Spot Buy Center help procurement teams with tail spend?

We take over the sourcing, ordering, follow-up, invoicing and payment of your tail spend and spot buys. Your organisation works with one supplier and one single creditor instead of hundreds of C-suppliers, so your procurement team can focus on strategic suppliers.

What does one single creditor mean?

Instead of creating and managing every small supplier in your ERP, you only have Spot Buy Center as a creditor. That means fewer vendors to onboard, fewer invoices to process and one point of contact for all follow-up.

Do we stay in control of what is bought?

Yes. Thanks to the no PO, no order principle, nothing is ordered without an approved purchase order. You get full transparency on what is bought, by whom and at what cost.

Can outsourcing tail spend improve working capital?

Yes. You apply your own payment terms without negotiating with each supplier, which can generate up to 90 days of extra working capital.

Which service levels does Spot Buy Center offer?

You choose how much you outsource: Self-service, Admin service or Full service. Tail catalogues are included in every plan, and our platform integrates with your ERP or works as a standalone solution.