How Refteck Solutions Can Help in Tail Spend Management?

Jan 17, 2024

In the broad and dynamic landscape of the supply chain, tail spend is a hidden gem.

It is often disregarded in the purchasing group that can account for up to 80% of transactions by volume but just 20% of overall spend value.

Businesses can find considerable savings opportunities, increase efficiency, and lower risk by putting efficient tail expenditure control tactics into practice. For instance, when the economy is struggling, and cost-cutting is a top priority, the largest potential for reductions is in indirect expenditure categories like tail spending. 

So, what can be done to understand how much money is being leveraged by organisations in their day-to-day routine?

The answer simply lies in bringing tail spend under control.

Today, in this blog post, we will learn about how Refteck can help you with tail spend management solutions.

Let's get started.

Definition of Tail Spend

Because every organisation and business unit have a different expenditure profile, there is no universal definition for tail spend across firms or even within a single corporation. In some categories, the tail spend may not be the same as in others. These purchases tend to be both rare enough not to be included in catalogued systems and too little to go via procurement. 

There are numerous definitions of tail spend, and there is no right or wrong one. There are also various names for tail spend; these include rogue spend and maverick spend. Tail spend typically refers to low-value or covert purchases that an organisation undertakes outside of the agreements it has with its primary suppliers, frequently without the procurement team's knowledge.

Tail Spend Management Solutions

How to manage tail spend procurement?

Effective tail spend management can result in significant cost reductions and process improvements. Offering complete tail expenditure management solutions, Refteck Solutions leads the game. Companies can establish a more effective supplier base and gain more insight into their spending and savings by implementing tail spend management.

Let's understand the key strategies implemented by Refteck Solutions to help you make some big savings. You can choose from a wide range of tail spend management solutions, each tailored for a specific kind of organisation. Their unique solutions offer an all-encompassing strategy for tail expenditure control, from dynamic supplier management to automated procurement procedures. 

1. Analyse your spending:

The first step involved in the tail spend analysis is to understand its makeup and trends. Refteck Solutions analyses your procurement data using modern analytic tools and methods. We offer insightful data into your tail expenditure landscape by classifying purchases, identifying maverick spending, and locating cost-saving options. 

2. Determine any supply chain risks that exists:

You should also examine the risks to your supply chain as part of your analysis of spending. Find out what tail spending entails for each business unit in your company so that procurement may take the proper action to manage, optimise, and measure it efficiently. You have a chance to get past limitations and delays that are beyond your control if you have dependable backup suppliers and diversify those providers. You are also less likely to do this by straying from your structured procurement channels and into the tail expenditure.

3. Consolidate your internal processes:

Ineffective internal procedures are one way you can lose money unnecessarily. This might be the case if your systems are old, if your organisational structure is too complex, or if your procurement procedures are too disjointed when they could be integrated. Are your departments using small transactions to streamline their operations and better serve the needs of the company? If so, it might be because of operational inefficiencies that, if they were solved, would eliminate the need for these purchases. So, another tail spend strategy is streamlining your internal processes effectively, and Refteck can help you with that, too.

4. Implementation of Strategic Procurement Policy:

Effective tail spend procurement is based on creating and enforcing strong procurement regulations. Refteck Solutions works directly with clients to create policies that support their corporate goals. These regulations ensure compliance and cost management by addressing everything from preferred suppliers to approval processes.

5. Use of Technology and Automation Use:

Modern procurement depends heavily on technology, and Refteck Solutions recognises this. To automate repetitive activities, enforce compliance, and provide real-time visibility into spending patterns, they use cutting-edge procurement software. This not only increases productivity but also makes it possible to make decisions based on facts.

6. Outsourcing Tail Spend Management:

Tail spend management outsourcing can be a game changer for an expert company like Refteck Solutions. In this way, internal procurement teams are able to concentrate on major projects by outsourcing the day-to-day management of low-value purchases. Refteck Solutions' experience, tools, and supplier relationships result in considerable cost savings. Therefore, outsourcing tail spend control is an excellent method to free up some cash, especially when we are in charge.
Tail Spend Strategy

Benefits of outsourcing tail spend to Refteck:

  • Refteck Solutions stands out among other tail spend management companies because of its focus on the needs of the customer and dedication to providing measurable outcomes. We have become a reliable partner in tail spend optimisation because of our demonstrated success in assisting companies from a variety of industries to realise considerable cost savings. 
  • Refteck Solutions provides a wide range of tail spend management services such as procurement automation process, supplier performance monitoring, compliance management, and contract negotiation. Utilising our knowledge will enable you to change your tail spend from a cost centre to a source of competitive advantage.  
  • Maximising the value of each procurement dollar spent is the ultimate objective of tail spend management. Refteck Solutions uses a continuous improvement methodology, improving tactics and procedures on a regular basis to provide additional cost savings and efficiency benefits. Their dedication to constant optimisation ensures that your company maintains its competitiveness in a fast-paced market.


Any successful procurement strategy must include excellent tail spend management. One such leading provider is Refteck Solutions, which assists companies in maximising tail spend and achieving procurement excellence. 

Take charge of your procurement future by collaborating with Refteck Solutions today.

More Interesting Blogs, News & Updates