Tail Spend Management
If your answer is yes to one of the below questions we suggest you give us a call asap!
- Is outsourcing the complete tail of your existing supply chain something you dream of but don’t know how or where to start?
- Are certain commodities in your supply chain causing too many headaches?
- Are you confident the prices you are paying your non-strategic suppliers are competitive?
- Is your strategic purchasing team spending too much time being operative rather than strategic?
When it comes to supply chain, an OEM’s tail end makes up 80% of their supplier list but, on average, less than 10% of yearly turnover is ordered through them. Often times, a long list of tail suppliers can take a toll on quality, capability, and warrant a financial situation where efficiency is concerned. Due to high complexity in the tail, classic consolidation and active resourcing does not effectively solve benchmarking efforts. From years of dealing with strategic consolidation, we have found that the following are a few reasons to consider handing off your tail spend management to J2 Sourcing:
- Our organization of your tail suppliers is beneficial to your company because it supports significant and sustainable improvements in sourcing and supply chain management efforts
- By allowing J2 to manage your tail, you accelerate the complex reduction of suppliers
- We consolidate your tail spending through our program and plethora of highly committed people on site who can meet your requirements and future challenges
- J2 analyzes and improves your logistic setups making things simpler for you
- Our dedicated team means higher flexibility when it comes to your supply demand peaks
- We have the ability to optimize and improve your warehouse’s yearly turnover thus lowering costs for you while also creating space
When you work with J2 Sourcing’s tail spend management program, we take full responsibility for the following aspects:
- Order handling
- Maintenance and unification of purchasing conditions
- And more
If you feel that any of the above matches your situation we suggest that you contact us instantly so that we can start lowering you costs.