Cut hidden costs,
maximise savings on your smallest purchases!

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".

Visible expenditure vs. hidden costs

How long tail spend drives hidden costs

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.

The many sources of hidden costs

From product research to its utilisation, long tail spend results a series of hidden costs or extra management time. Their amounts are difficult to assess and control without a dedicated methodology.
  • Delivery
  • Number of suppliers
  • Invoice matching
  • Out-of-process purchase
  • Number of transactions
  • Customer service
  • Loss & theft
  • Long tail
  • Reception & provision
  • Error & return