Tail Spend Management: Food Manufacturer

By reducing the number of tail end suppliers, employees use the existing supplier base, spend less time setting up new supplier records, and the end-to-end internal purchase-to-pay costs are reduced.

Client overview

Ebit worked with a large food manufacturing business with sites in the UK and Europe on a tail spend management project, which involved a combination of spend consolidation, incumbent supplier negotiation and process and policy improvements.

Our approach

We analyse existing spend to identify opportunities for supplier consolidation, in order to identify an appropriate management strategy. We also consider improvements to policy and process control to future-proof tail spend management.

Value delivered

  • Seven-figure savings delivered
  • Increased spend consolidation
  • Leveraged existing contracts
  • Mandated 60-90 day payment terms
  • Future-proofed procurement process by implementing a new triage process to funnel demand based on spend, improving governance
  • New policy of “No PO, No Pay” applied to all suppliers

Work With Us

We can deliver significant savings for your business