Major Retailer Revamps Tail Spend Purchasing Practices with Advanced Software Solutions

Tail spend purchasing has long been a headache for organizations, often addressed with fragmented methods such as commercial cards, BPOs, and e-marketplaces. Despite the challenges, Chief Procurement Officers recognize the significant opportunities that effective tail spend management can offer. In a competitive landscape, this global retailer faced difficulties in managing a substantial volume of suppliers and micro-purchases while maintaining user-friendliness across various lines of business. The retailer required a solution that met the rigorous demands of its procurement organization while being accessible and easy to use for its employees.

Metasys partnered with the retailer to implement a comprehensive, four-step approach focusing on people, processes, and technology to effectively manage tail spend:

1. Organize: The engagement began with a thorough spend analysis to understand the retailer’s tail spend profile. The results informed a roadmap for managing tail spend and facilitated the onboarding of suppliers onto the Metasys technology platform.
2. Operationalize: With a clear roadmap established, Metasys operationalized the plan by implementing a tail spend technology platform across multiple business units. Comprehensive training was provided to ensure adoption, and a dedicated Buyer’s Desk was created to assist with tail spend purchases requiring additional management outside of the technology platform.
3. Recognize: Once the program was in place, Metasys equipped leadership with analytics dashboards and reporting capabilities for enhanced visibility into tail spend purchasing patterns. Utilizing AI technology, the team conducted post-assessments to identify predictive trends and sourcing opportunities.

Strategize: With a robust tail spend management program established, Metasys collaborated with the retailer to draft policies that ensure sustainable and consistent practices throughout the organization.

The retailer became fully operational with advanced technology and expert support to effectively manage its tail spend. Throughout their multi-year partnership with Metasys, the retailer realized substantial value, including:

• Cost Savings: Access to a broader selection of suppliers and a dedicated Buyer’s Desk to negotiate competitive pricing.
• Compliance: A marked reduction in non-vetted and unapproved suppliers and purchases.
• Control: Enhanced visibility over tail spend purchasing activities.
• Efficiency: Streamlined processes, including automated POs and invoices, along with a significant reduction in the supplier base from over 20,000 suppliers to a single supplier of record.