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Genpact Data-Led Tail Spend Optimization

Elimination of tail spend provides strategic focus and reduction of costs

The Genpact Data-Led Tail Spend Optimization application creates a data-driven solution to eliminate tail spend. The application identifies transactions that are using the wrong supplier, buying channel, or process for fulfillment, highlighting the cost associated with maverick spend and the opportunity that a company can realize through proper management of rogue transactions. Companies applying these principles to tail spend typically achieve 4โ€“7% savings when redirecting the transaction to the proper supplier, buying channel & potential labor arbitrage.

The tool aggregates transactions based on value, providing a count of suppliers, transactions, and spend in each user-defined segment. Users are provided with the opportunity to apply user-defined addressability factors and savings percentages to each segment, providing estimated impact from eliminating tail spend.

This is where Celonis and Genpact Combine their Strengths

  • Highlight the complexity in the procurement processes

  • Quantify the tail spend savings potential

  • Identify the number of suppliers, transactions, and total spend by spend bucketsย 

  • Provide insights to reduce the number of tail spend onetime suppliers

  • Reduce maverick buying

Features & Capabilities

Utilize the framework to identify and aggregate low dollar transactions based on predefined segments. The analysis highlights focused vendors and categories with significant tail spend.

Genpact - Identify Tail Spend by Vendor and Commodity

Dashboard provides ranking of tail spend suppliers based on transactions and spend. This allows the impacted material groups to be segmented for prioritization of actions.

Genpact - Prioritization of Top Vendors & Materials Groups

The analysis shows the impact of moving low-dollar transactions to either tactically source or move the transaction to a preferred supplier. As a result, dynamic tail spend analysis gives you the flexibility to adjust addressability and savings.

Genpact - Project Savings from Tail Spend Elimination
Genpact - Identify Tail Spend by Vendor and Commodity
Genpact - Prioritization of Top Vendors & Materials Groups
Genpact - Project Savings from Tail Spend Elimination

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