Tail spend : Overview of the transportation and storage industry

Updated on February 2nd, 2021
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In its latest barometer, Manutan analyses the purchasing habits of 63 major French companies in the transport and storage industry, in order to assess their maturity in managing tail spend. With an average Savin'side® rating of 3.17/5, management in the industry appears to be relatively well structured, with three main areas for improvement: product optimisation, deployment of the agreement and quality control.

Infographic of Class C purchases barometer : transportation and storage industry

Supplier rationalisation: 2/5

The companies in our supplier base are under-utilising the breadth of products offered by Manutan. In fact, only three out of eight product families are being widely purchased. For the other categories, they tend to use specialist providers. This shows that while the market is well structured, they could go even further by streamlining their supplier portfolio for already optimised categories, in order to reduce their "unscheduled purchases".

Product optimisation: 3/5

In the industry, high-end products are fairly dominant with an average rate of 29%. The trend is reversed for best-in-class companies that purchase more mid-range and Manutan-branded products. This highlights that there is plenty of room for improvement.

Digitalisation of transactions: 3/5

The transportation and storage sector has clearly already begun digitalising its processes. On average, 61% of transactions recorded are paperless and take place via an e-procurement solution. Best-in-class companies carry out up to 84% of paperless transactions, as they have already accelerated the digitalisation of their orders.

Supply chain optimisation: 5/5

This area is, without doubt, the industry's greatest strength. All of the companies involved record less than one delivery or receipt per week. In fact, users tend to place orders in bulk, enabling them to optimise the processing of product flows and increasing productivity across all teams.

5. Deployment of the agreement: 2/5

Across our supplier base, only 17% of sites make optimal use of their contract. This means that they account for expenditure in excess of the estimated potential per employee, per year (€120) from a single supplier (Manutan). The fastest and most effective means available to companies for encouraging deployment across all sites remains digitalisation (email campaigns sent by the buyer, training via customised webinars etc.).

6. Quality management: 4/5

The transportation and storage sector has an estimated service rate of 89%. This figure is affected in particular by an increasing number of project launches relating to invoice digitalisation.

Despite the diverse nature of the companies in this industry, their management of tail spend is relatively well structured. A basic trend is emerging: the rise of digitalisation. Through this process, procurement departments are aiming to gain increased control over their tail spend while simultaneously improving their performance.

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