Tail Spend is a phrase that is commonly used to describe the spend that a company is making but not accounting for or managing strategically through the company’s procurement policy.
Tail Spend falls outside of the main purchasing processes associated with the direct business line of an organisation and is usually not effectively managed by the procurement team as it is seen as non-Strategic spend.
Tail Spend can fall into a number of categories, for example:
- Print and Packaging
- Signage and Display
- Business Services
- Marketing Services
- Professional Services
- Office Products
- Uniforms and Apparel
- Facilities
- Gifts and Premiums
- Temporary Labour
