Tail Spend Management Definition

What is tail spend management?

Tail spend management is the process of identifying, analyzing, and managing organizational spending on goods and services that are not essential to core business operations. This includes expenditures on non-strategic items such as office supplies, travel, and entertainment.

Organizations often overlook their tail spend because it represents a small fraction of their overall budget. However, this spending can add up quickly and can be a major drain on financial resources.

Tail spend management involves setting policies and procedures for controlling tail spend. This may include centralizing purchasing, negotiating better prices with suppliers, and increasing transparency around tail spend expenditures.

By effectively managing tail spend, organizations can free up funds for more important priorities, improve operational efficiency, and reduce waste.