Procurement Outsourcing

Tailspend Management | Purchasing Outsourcing

Purchasing Outsourcing means operational synergy while your company really focuses on your main business area. Tailspend management is a cooperation progressed with Kummerk systems' becoming integrated. The objectives are to work with on-time shipments, reduced tail-spend costs and enhanced operational performance.

Tail spend refers to indirect and MRO purchases, such as maintenance supplies, software or professional services, that fall outside of the typical ongoing and large purchases an organization makes. The purchases are often too small to go through procurement, and don’t happen often enough to be included in the cataloged systems. Following the Pareto principle, 80% of suppliers represent just 20% of an organization’s spend.

Tail spending is an expense item that is included in the budget of almost all companies, though it cannot be clearly defined and has low data visibility. Tail purchases can be defined as a “total of product and service expenses which are outside the main expense category, are small in terms of amount, but are not frequently required enough to create a catalogue item and can be described as non-contractual”. Kummerk (Mexico, USA and Canada), Promena and Zer (in turkey) are also on your side for the management of your periodic tail expenses with its power, experience and broad supplier network.

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Kummerk - Consult and Audits creates added value

Expertise in different commodities and categories

Our tailspend managed services focus on our clients' needs and business opportunities. When purchase officers spend time managing tail expenses, it prevents them from focusing on expenses that would create added value, and this increases unproductivity. Kummerk steps in at this point, takes the burden from your company and provides a service that exceeds your expectations with its expertise and broad supplier network in different categories.

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Kummerk Group

• Marketplace, BPO Services, Business Consulting, Taxes, Accounting, Auditing, Purchasing, Inventories, Warehouses, Supply Chain, Accounts Receivable, Accounts Payable, Preventive Maintenance, Corrective Maintenance, Engineering and Work Study

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