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 4–7% 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 buckets
Provide insights to reduce the number of tail spend onetime suppliers
Reduce maverick buying
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.
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.
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.
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