Work out tail spend consolidation saving instantly with clear inputs, formula shown and shareable results.
Tail spend consolidation delivers two savings: a modest price improvement from aggregating volume, and a much larger administrative saving from eliminating supplier relationships that each cost real money to onboard, maintain and pay.
Price saving
Price saving = Tail spend x Expected saving %
Administrative saving
Admin saving = Suppliers removed x Annual cost per supplier relationship
Because each supplier consumes onboarding, compliance checks, master data maintenance and invoice processing regardless of how little you buy from them.
Reducing the tail supplier count by 60-80% while retaining coverage, usually through catalogues, marketplaces or a managed service provider.