Regardless of company size, tail spend is not inconsequential. It makes up 20% of the average company’s overall annual procurement spend. Fairmarkit was created to optimize tail spend for organizations of all sizes with varying procurement models.
Tail spend does not discriminate based on company size. For organizations that categorize themselves as small, we would argue that every dollar and employee minute is that much more critical to success and growth. The ability to automatically generate extra savings and realign precious hours to revenue driving activities makes all the difference early on.
We generally group mid-sized companies into two categories: high growth mid-sized and highly sustainable mid-sized. For high growth companies, profitability often takes a back seat to speed, which is why they look to Fairmarkit to reduce manual cycles necessary to complete tail spend transactions. In highly sustainable organizations, we’ve observed a healthy mix between valuing both time and savings.
By nature, even outside of the world of tail spend, large companies tend to be more complex. So it’s unsurprising that this complexity can bring greater inefficiencies. Through speaking with some of the largest companies around the world, we’ve learned that the inefficiencies associated with tail spend are real and painful. Not only can the sheer number of tail spend purchases in the 10,000s+, they also make up hundreds of millions or even billions of dollars. Also, they are typically completed across multiple isolated or decentralized buyers and individual, internal shoppers.
The problem is beyond human scale which is why technology adoption is so important. The key value triggers for these organizations are usually not single-threaded and includes initiatives such as cost savings, time savings, de-risking vendor selection, vendor consolidation, performance tracking and disadvantaged business inclusion.
Using the AWS Cloud, Fairmarkit spans 55 Availability Zones within 18 geographic Regions around the world. Additionally, Fairmarkit’s Tail Spend Management Platform crosses borders worldwide, eliminating tribal knowledge or different SKU prices cross border. Any language is easily accessible within Fairmarkit’s Tail Spend Management Platform.