‘Tail End’ spend typically encompasses the bottom 20% of an organisation’s spend with 80% of its suppliers. Our Tail End Management service consolidates a ‘long’ tail end supply base to optimise the efficiency of procurement.
Defining Tail End spend and Tail End Management.
Many organisations necessarily concentrate supply chain management on their areas of largest spend, leaving their lower value purchases, or ‘tail end’ spend, at risk of generating disproportionate costs.
Defining ‘tail end’ spend. We define ‘tail end’ spend as the spend within any organisation, and primarily within a procurement-driven organisation, that forms the bottom part of the organisation’s spend. This typically encompasses 20% of spend with 80% of suppliers and includes purchases where organisations believe that common procurement rules can not be applied.
Organisations with a ‘long’ tail end spend typically purchase a small number of goods from a large number of suppliers, generating a high volume of administration that drives down productivity and increases cost. The burden of dealing with numerous suppliers means that staff often have neither the time, nor the resources to identify the most appropriate products or achieve the best prices.
Bates Tail End Management. Our Tail End Management service delivers a fully integrated solution to control and leverage purchasing expertise to generate both direct and indirect savings. We achieve this through a structured and transparent methodology to provide a tailored solution that consolidates tail spend and optimises the efficiency of procurement and supply chains.
- Tail end spend comprises:
- Off-contract spend
- Fragmented spend
- Low-value spend
- Non-PO (non-purchase order) spend
- Unauthorised spend
- Tail End Management:
- Identifies, analyses and rationalises tail end spend
- Leverages tail spend and improves purchasing efficiency
- Increases fiscal transparency and mitigates hidden costs
- Reduces risk and aids compliance
The NHS, along with all public sector organisations, faces growing challenges in the delivery of services, the need to rationalise and contain procurement costs has never been greater.
We reduce your costs by addressing the way you buy.
Consolidating your purchasing through our Tail End Management service reduces both the price of the products you buy, and the high cost of purchasing from a complex and fragmented network of suppliers.
As the NHS, along with all public sector organisations, faces growing challenges in the delivery of services, the need to rationalise and contain procurement costs has never been greater.
Large procurement-driven organisations like the NHS inevitably develop management systems that focus on their highest value/volume spend; spend that typically involves large purchases from relatively few suppliers.
Small and low value purchases, or ‘Tail End’, spend is often more devolved, with a greater number of staff purchasing from a wide network of suppliers. The quantity and complexity of transactions at this level can reduce the efficiency of spend management and generate disproportionate costs.
Our benchmark service provides a robust, tailored framework for Tail End Management, founded on extensive industry experience, proven methodology, intelligent delivery, consistent monitoring and transparent reporting.
Our service identifies and rationalises the ‘Tail End’ of your spend, directly reducing the cost of supplies and the cumulative cost of procurement.
- Reduced product costs
- Reduced administration and management costs
- Reduced delivery costs
- Increased visibility of expenditure
- Improved cost control
- Improved strategic buying and targeted spend
- Reduced rogue spend
- Improved product consistency and compliance
- Consolidated and rationalised spend
- Lower cumulative procurement costs
As your supplier base grows the costs, and therefore financial risks, of tail end spend escalate. The more procurement-driven the organisation, the more crucial Tail End Management becomes.
We enhance your efficiency with single-source procurement.
The financial benefit of consolidating a large supplier base into a single managed source may seem obvious, but it is the hidden costs of tail end spend that make Tail End Management so crucial.
Our Tail End Management service can identify and reduce the ‘hidden’ costs associated with tail end procurement. These costs include sourcing supplies, managing vendors, processing large volumes of invoices, managing multiple deliveries and the cost of processing orders.
Consolidating a tail spend supply base rationalises numerous suppliers into a single source for procurement, significantly reducing administration, man hours, rogue spend and unauthorised purchasing.
We provide access to an enhanced range of products through a single source, with dedicated support, expert advice and sourcing, improved product consistency and quality management.
In addition, our Tail End Management service provides an established framework for real time monitoring and reporting – making it easier for you to control your procurement spend.
- Single source procurement
- Dedicated customer support 24/7/365
- Expert sourcing and enhanced product choice
- Improved quality and consistency of products
- Same day and next day deliveries to point of use
- Bespoke stock management and replenishment
- Reduced administration – one order, one invoice
- Improved scope for staff to focus on core duties
We are uniquely placed to deliver Tail End Management through an established framework of flexible, integrated services with a robust and proven infrastructure.
Our Tail End Management framework and services.
Countess of Chester Hospital NHS Foundation Trust’s Commercial Procurement framework allows NHS and other public sector authorities to procure Tail End Management services, and expedite management of their tail end spend.
The Countess of Chester Hospital NHS Foundation Trust’s Commercial Procurement framework allows NHS authorities and other public bodies to procure Tail End Management services, including purchasing, supplier management, delivery and reporting with no further competition. This will enable Trusts to expedite the management of their tail end spend.
The framework is available for use by all NHS bodies and other public sector organisations in the United Kingdom who are referenced within the OJEU award notice. OJEU Number 2016/S 200-360874
Our methodology. We identify Tail End Spend and deliver Tail End Management through a process of five key steps: Analyse Spend; Define Tail End Spend; Identify Savings Opportunities; Source and Contract; Measure and Report Improvement.
Implementation. We understand that no two organisations are the same and we are uniquely placed to identify and address the specific challenges faced. We implement tailored solutions through a flexible yet robust and proven infrastructure of fully integrated services.
Delivery. From the ground up, our services are delivered by experienced professionals who are invested decision makers with a wealth of industry expertise.
- Fully integrated Tail End Management services
- Experienced procurement and supply chain management teams
- Dedicated product specialists
- Dedicated sourcing helpdesk
- Dedicated account managers
- Approved supplier database
- Proven quotation methodology
- Focused on value for money
Our Tail End Management solution provides single-source continuous performance monitoring, offering greater visibility and control over tail end purchasing.
Driving performance through real time monitoring and reporting.
Our Tail End Management solution provides real time monitoring and reporting across more than 40 key performance indicators, and offers bespoke reporting across key account activities.
Key performance indicators (KPIs). As part of our audited ISO9001 and ISO14001 management system, we have our own internal management tools for measuring our performance. At the heart of our KPI management is a customised application designed to give an instant real time performance report against more than 40 different KPIs including: order fulfillment, quotation tracking, delivery success, call answering time, query resolution time, stock performance reporting & timed delivery accuracy.
Bespoke frequency and scope of reporting against KPIs. We generate a bespoke reporting framework based on your specific requirements in order to deliver continuous improvement.
Management information and reporting. We offer regular business intelligence reports across key areas of procurement activity. These would typically include: Total Spend, Spend by User Location & Cost Centre, Product Alternative Report, Volume of Orders by Location, Savings Report, KPI Monitoring Information.
- Audited ISO9001 and ISO14001 Management System
- Real time reporting for over 40 Key Performance Indicators
- Bespoke frequency and scope of KPI reporting
- Management reports across key areas of account activity
- Regular engagement with stakeholders and end users
- Continuous assessment and auditing of suppliers
- Performance analysis and driven service improvement
- Bespoke delivery service
- Stock and inventory management options
- National distribution from UK locations
- UK company
- Ethical and environmental credentials
Thank you for taking the time to learn about our business services. If you would like to know more, please talk to us.
A1-A4 Knights Park Industrial Estate
Phone: 01322 550167
Fax: 01322 525227
Vale Business Park
Vale of Glamorgan
Phone: 01978 358613
Fax: 01978 362509
Stoke-on-Trent Environmental House
Oldfield Business Park
Stoke on Trent
Phone: 01270 256891
Fax: 01270 505029