Tail Spend Management

  • Efficient procurement through supplier consolidation
  • Worldwide supply network
  • Custom tail spend portal

What Is Software Tail Spend?

Software Tail Spend works in a similar way to the Pareto principle of factor sparsity, in that approximately 80% of software costs are related to core purchases from a small number of strategic suppliers, while the other 20% are distributed among countless non-core purchase processes that require a degree of management and data maintenance that the software purchase department cannot effectively deploy.

The Challenge

Because a procurement department’s focus usually lies with strategically important core suppliers, there are often not enough resources available to effectively manage the large number of suppliers and transactions involved in the tail spend.

Tail spend issues include:

  • Low purchase volumes that do not justify comprehensive supplier management
  • ‘Maverick buying’ that doesn’t adhere to established processes
  • ‘Exotic’ products require licensing expertise that is often lacking and is difficult to acquire on the job
  • Difficulty complying with multiple payment terms

Let the Experts Manage Your Tail Spend

Let our sourcing services department procure and manage your software tail spend.

We put your purchase requests to tender efficiently and transparently, and select the most cost-effective purchase route. We also consolidate and manage the supply chain and use our unparalleled experience in license and contract management to check the suitability of the licensing terms before the software is installed.

We manage your software contracts and ensure that you don’t miss any important maintenance renewals or overlook other significant regulations, regardless of the purchase volume involved.

Benefits of CCP’s Tail Spend Management Service:

  • Reduced licensing costs
  • Increased managed spend
  • Increased efficiency through process automation
  • Improved compliance
  • Increased customer satisfaction

CCP manages tail spend for a growing number of companies, helping them to save money and free up resources for strategic core purchasing processes. Get in touch to find out more.