Are you struggling to gain visibility and control over your unplanned and undermanaged spend? We are here to tell you that you’re not alone. Organizations nationwide are battling rogue and tail spend, especially post pandemic where purchases shifted online.
Let's take a closer look at how to identify and control your organization's rogue spend.
What are Rogue and Tail Spend?
Tail spend refers to the amount a company spends on purchases that make up about 80% of transactions but cover only 20% of total spend. It typically gets ignored and goes unmanaged.
Maverick spend, or rogue spend, is mainly found under the tail spend umbrella in high frequency/low-cost purchases. It involves items purchased from suppliers outside of your approved procurement policy.
Amazon Business Solution for Undermanaged Spend
Amazon Business offers your organization increased visibility and control as well as a streamlined procurement process that results in time and cost savings. The Amazon business platform has proven to result in 30% more efficiency by procurement professionals and 100% of buyers prefer it over their current or past systems.
If you are struggling with...
- Managing p-card or credit card purchases
- Expense reimbursements
- E-Procurement special requests
- Offline requests
... Amazon Business can help you manage and improve your purchasing experience.
Through Amazon Business your organization can implement the 5 keys to managed spend seamlessly and begin eliminating rogue spend.
The 5 Keys to Managed Spend
Amazon Business believes there are 5 keys to solving for undermanaged spend:
- Wholistic Cost Evaluation – Account for Hidden Expenses. Transform your unplanned spend into planned spend. Stop using “bandaid” approaches and implement a comprehensive solution. Take a deeper dive into your spend analytics to reduce costs and risk by looking into where your tail spend is coming from. Empower your employees to be more intuitive with their buying by providing a tailored catalog and simplified buying process. By doing this you are able to guide your buyer towards solutions that are approved and trackable by your organization.
- Agile Pricing Strategy – Embrace Flexibility. As scary as it may seem, embracing flexibility over locked in prices gives your buyers the ability to act quickly and adapt to your organization's specific needs and projects.
- Guided Buying and Compliance – Streamlined Procurement. Directing your employees towards preferred products and suppliers ensures alignment with your strategy and compliance standards.
- Supplier Redundancy – Ensure Continuity and Manage Risk. This method avoids reliance on one supplier to supply you with every product and solution you need. You therefore mitigate the risk of your products being out of stock.
- End to End Supply Chain Visibility – Enhance Transparency and Control. Tracking orders in real time reveals instant insight into the current availability and offerings as well as optimizes your organization's inventory management.
OMNIA Partners & Amazon Business
OMNIA Partners members can create a free Amazon Business account or link an existing account to your organization's primary amazon business account as an "associated account" to receive special membership benefits.
- 50% discount on eligible business prime membership plans for the first two years. Receive faster shipping with Business Prime membership
- 10% off select 2,000+ Amazon private label products
- Access to 500+ top breakroom products at low, stable prices
- Purchase everything from batteries to snacks
- Prices remain stable for 12 weeks to help enhance your budgeting ability
- Two-day shipping with Business Prime
- Pre-approval for a pay by invoice credit line of $5,000 (terms and conditions apply)
You don’t have to reinvent the wheel with Amazon Business, create approval processes that are similar to your existing and provide a simplified buying process for your buyer.
Interested in learning more?