PROACTIS News

PROACTIS Launches Tail-Spend Management Platform for Effective Cost Control

News Facts
 
  • PROACTIS, the specialist in Spend Control and eProcurement, today launched PROACTIS Tail-Spend Management (TSM), a cloud-based platform to help Procurement and Finance executives address tail-spend categories together, to deliver significant savings in terms of both reduced unit prices and process improvements - both of which free up money and valuable resources.
  • The term "tail-spend", is derived from the Pareto principle, which states that only 20 percent of suppliers will account for 80 percent of an organisation's spend. Accordingly, tail-spend represents the bottom 20 percent by value and typically fits criteria such as: low value, non-contracted spend, high invoice volume, suppliers that the Procurement team have not heard of, and so forth.
  • PROACTIS TSM is designed to enable executives to tackle the large number of tail-spend categories that have not yet been formally addressed; by applying a professional, methodical approach and by using the right combination of eProcurement technology combined with appropriate outsourced and/or managed services.
  • PROACTIS provides everything needed to increase the range of 'spend under management', reduce the volume of suppliers, orders and invoices where possible, and much more efficiently manage the remaining volume of suppliers, orders and invoices associated with tail-spend.
About the Solution
  • The PROACTIS TSM platform offers the following capabilities:
  • Rapid spend review service that quickly provides you with insight into your tail-spend, including a clear picture of the biggest opportunities for savings.
  • Streamlined sourcing tools to perform accelerated sourcing events suitable for smaller spot-buys, including rapid RFx and Quick-Quote capabilities.
  • Streamlined supplier management tools using an online supplier portal suitable for handling a high number of suppliers, such as supplier self-registration, certification workflows, self-service catalogue management, etc.
  • Purchase-to-pay tools such as supplier catalogue and punch-out capabilities that make it easy for employees to find and buy exactly what they need from the right supplier - even across hundreds of thousands of tail-end items.
  • Spend visibility gained by capturing all purchase activity through PROACTIS Purchase-to-Pay. Over time, this provides the basis for even closer analysis to continually identify incremental and emerging savings opportunities.
  • Specialised category supply partners that specialise in ensuring the lowest prices and best value for various categories such as stationery, paper, catering and janitorial items, work wear, workplace environment products, lighting, print services, in-house print management, business machines, office furniture, promotional items and more.
  • Managed service and outsourced sourcing partners that specialise in handling specific categories your team may not have experience with on an as-needed basis.
  • Electronic invoice capabilities to reduce the invoice capture and processing burden associated with tail-spend - a wide range of tools suitable for both low and high volume suppliers, suppliers with both modest and sophisticated technology capabilities, suppliers with whom you use PCards, energy suppliers, and more.
  • Invoice capture services to reduce the workload and improve accuracy for the remaining paper invoices.
  • Self-service supplier account enquiry using the online supplier portal to dramatically reduce the workload associated with answering supplier calls and emails requesting invoice and payment status.
Supporting Quotes
  • "We have developed a unique proposition," said Simon Dadswell, Director of Marketing of PROACTIS. "PROACTIS TSM helps Finance and Procurement executives to effectively squeeze savings from the most fragmented 20% of spend."
  • "Allowing your organisation to spend that 20% (tail-end) of total expenditure with little or no sourcing support, and with little focus on the large number of invoices involved, results in higher prices and a higher cost base."
  • "PROACTIS TSM helps procurement executives to execute effective sourcing strategies across a diverse supplier base while maximising efficiency, and reduces the administrative burden in Accounts Payable and other areas from a large invoice-handling workload" continued Simon.
 
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