Fairmarkit is a SaaS platform that helps procurement departments take control of their unmanaged spend. Fairmarkit’s platform uses machine learning to automate processes and increase visibility into customers’ tail spend, making it easier than ever to source and purchase low-value items. Since day one we’ve worked with our customers to design our platform around their procurement challenges. The result of this collaboration is software designed to streamline all aspects of tail spend management. With Fairmarkit, you can expect to see significant cost savings, increased operational efficiency, and simplified compliance.
We define tail spend with the 80-20 principle. Tail spend is the 80% of purchases that account for 20% of an organization’s yearly spend. Each organization will set this threshold differently, but the commonality across industry and size is this: tail spend does not have a formal purchasing procedure.
There’s a reason many companies don’t have a tail spend management strategy. By nature, tail spend accounts for a high volume of transactions across all categories. The sheer number of items in the tail can make it difficult to apply best practices, but procurement would be wise to prioritize tail spend management. Handling tail spend on an ad hoc basis leads to wasted employee hours and missed opportunities.
With Fairmarkit, tail spend will not go unmanaged. Our platform delivers these benefits:
- Cost Savings – By taking control of their tail spend, our customers see a 6-12% cost savings.
- Increased Efficiency – Fairmarkit’s machine learning platform finds and vets suppliers for you, leading to a 30% increase in operational efficiency. This frees up time to negotiate core accounts and strategically manage other spend.
- Improved Visibility – If you can see it, you can manage it. Fairmarkit helps businesses understand where their spend is going, and gives them the tools to act. It automatically selects trusted vendors and provides unprecedented visibility into your full supply chain.
- Reduced Risk – Many procurement departments are just as concerned with compliance as they are savings. Fairmarkit ensures that you only do business with trusted vendors. It reduces the amount of time spent meeting regulations and vetting new suppliers.
- Expanded Supplier Database – Fairmarkit’s machine learning technology finds suppliers for you. It uses information from several databases to give you up-to-date vendors for all of purchase orders. This way you can spend more time on the strategic end of “strategic sourcing.”
- Enhanced Data Analytics – Fairmarkit collects and organizes data about your procurement activities. It integrates with any ERP or P2P to put your tail spend strategy in perspective. All of this leads to better analytics, stronger leverage, and more informed decisions.
No matter your tail spend challenges, Fairmarkit is optimized to help you bring all spend under management. We’ve helped customers streamline purchasing, grow savings and consolidate vendors. How can we help you?