Tail Spend Management

Unlock supply chain efficiencies with Office Depot

Managing the ‘long tail’ of your supply chain – indirect goods, small value orders, and one-off purchases is essential for efficiency and cost reduction for your organisation. While such purchases make up about 80% of a company’s suppliers, they only account for 20% of its spending. However, due to the highly transactional nature of tail management, this 20% often requires more time and resources to manage than the remaining 80%. As cross-border trade continues to rise, many manufacturing organisations are working with a growing number of suppliers to meet customer demands, making tail management all the more challenging. Buying goods from numerous suppliers often leads to excess inventory, which actually adds very little value, and costs more money. To tackle this, supply chain and procurement professionals have begun outsourcing tail management to specialists who can take a holistic view to improve efficiency and reduce costs, allowing businesses to focus on further growth.

At Office Depot, we offer tailored tail supply chain management solutions, seamlessly integrating into your finance or procurement teams. By consolidating your supplier base across essential products and services, we empower your staff to redirect their focus towards revenue-generating tasks.

Ready to streamline your procurement processes and unlock hidden efficiencies?

Schedule a discovery call with our expert team today to explore how we can optimise your tail spend management and drive tangible results

The endless benefits of tail spend management

Cost reduction

A well-executed tail spend management program can deliver cost savings of 5% – 10%, making it a valuable strategy for cost reduction.

Increased efficiency

Consolidating suppliers and implementing automated buying channels enhance both productivity and efficiency.

Reduced supplier risk

By controlling transactions and streamlining supplier bases, organisations can mitigate risks associated with rogue spending and unreliable firms.

Improved stakeholder satisfaction

Rationalising supplier databases and providing intuitive tools improve satisfaction among internal stakeholders.

Keen to get started on your tail spend management journey?

Here’s the Office Depot approach…

1 - Initial audit

Meet with key stakeholders to understand your unique requirements and challenges.

Identify category and supplier issues.

An in-depth analysis of your current practices and processes helps identify areas for improvement.

We analyse purchasing volumes and pricing to develop a tailored strategy.

2 - Audit

Thorough price comparisons ensure cost-effectiveness and value for money.

We explore alternative products to optimise your procurement process.

A detailed report outlines the financial status, providing insights for decision-making.

Access to our extensive logistics network ensures seamless supply chain management.

3 - Planning

We collaborate with your team to create and approve a comprehensive plan with clear timescales.

Customised online ordering platforms are created and tested for efficiency.

4- Implementation

The plan is rolled out across multiple sites nationwide to ensure uniformity and consistency.

Integration with IT systems, supply chain inventory, and invoicing systems ensures smooth operations.

Comprehensive staff training and user awareness programs are conducted to facilitate seamless adoption.

5 - Ongoing management

Regular management reporting and quarterly account reviews ensure transparency and accountability.

We continually explore product alternatives and innovations to enhance efficiency.

Proactive measures are taken to improve service levels and address any issues promptly.

Our implementation team remains involved for a three-month period post-implementation to address any challenges and ensure a smooth transition.

“We pick, pack and distribute over three million parcels per year, from golf balls and till rolls to point of sale and umbrellas.”

Martin Weedall, Chief Operations Officer, Office Depot

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