Tail spend management program rollouts are not always successful. As with most new programs, there are many technological and human factors that can make a tail spend initiative complicated. Despite this, there is one common thread that exists in every successful tail spend management implementation: the process was automated as much as possible.
There are three commonly present hurdles associated with these rollouts that are important to identify before starting a tail spend management initiative:
The three hurdles listed above explicitly highlight why automation is critical for success:
To clarify, automation should not replace your team. Your team is crucial for strategic and complex purchases and they are needed to make a value-based award on a sourcing event completed by an automated solution. No artificial buyer can digest and factor the unique circumstances around each sourcing event. Thus, finding solutions that empower buyers to be more efficient, while ensuring they can make final decisions, is crucial for implementing a successful tail spend management program.