For procurement departments in financial services, risk mitigation is as important as cost control. Because tail spend, also known as nonstrategic spend, constitutes up to 90% of an organization’s spend by volume, it represents a significant source of risk. Thus, procurement departments within financial services organizations stand to gain from adopting a robust tail spend management strategy. Further, the trend toward large-scale digitization in financial services provides incentives for procurement to be early adopters of digital solutions.
For procurement departments in financial services, risk mitigation is as important as cost control. Because tail spend, also known as nonstrategic spend, constitutes up to 90% of an organization’s spend by volume, it represents a significant source of risk. Thus, procurement departments within financial services organizations stand to gain from adopting a robust tail spend management strategy. Further, the trend toward large-scale digitization in financial services provides incentives for procurement to be early adopters of digital solutions.
