Long tail spend is too often neglected by procurement departments as it is considered "non-strategic". However, while it only represents a tiny fraction of a company’s overall expenditure, long tail spend accounts for the bulk of the hidden costs that weigh on "corporate profitability".
Long tail spend alone accounts for most of the number of orders, with a countless number of suppliers and procurement processes. This results in considerable operating costs, which often go beyond the reach of procurement departments and inflate their total cost of ownership.