Tail Spend
// TAIL SPEND MANAGEMENT
For many industrial companies, the primary focus in procurement lies with the top 20% of strategic suppliers — those high-value relationships that drive the majority of total spend. This focus is logical and necessary. But it often leaves a large portion of procurement activity operating in the background: tail spend.
Tail spend typically comprises 80% of all procurement transactions, spread across thousands of low-value purchases and a wide, fragmented supplier base. Although it represents only around 20% of total spend, its complexity — and potential — are often underestimated.
What makes tail spend especially challenging is its decentralized nature: purchases are often made outside procurement’s direct control, involve non-contracted vendors, and follow inconsistent processes. As a result, organizations struggle with:
- Limited visibility and spend data gaps
- Administrative burden from high transaction volumes
- Maverick buying and compliance risks
- Fragmented supplier terms and unmanaged pricing
- Difficulty identifying savings or supplier innovations
In environments like MRO procurement, where urgent, low-volume, and highly specific needs collide, these issues are even more pronounced — turning tail spend into a source of hidden risk and rising operational costs.
Fortunately, this complexity doesn’t have to remain unmanaged.
V-LINE’s MRO Tail Spend Management Solution
V-LINE brings structure to the chaos. With a proven approach tailored to industrial procurement, we offer a field-tested tail spend management solution that addresses both the visible and invisible pain points — from cost leakage to compliance.
Our single-creditor model consolidates your entire tail spend under one trusted partner. This means fewer suppliers, standardized processes, and full control without additional workload for your team. We handle the sourcing, supplier negotiation, and invoice settlement, while you gain transparency and savings.
Supported by advanced analytics and strategic sourcing expertise, we provide clear insights into purchasing behavior, risks, and optimization potential — all through order-level KPI reports and ongoing spend analysis.
Whether you’re managing a global spare parts network or struggling with inconsistent sub-threshold spend, our solution aligns with your procurement goals and integrates seamlessly with existing systems.
AT A GLANCE
Let's unlock the value in your tail spend! Contact us today.
What you get:
- Customer-oriented solutions and high level of flexibility
- An unmatched track record of success, measured in hard savings.
- RFQ templates, sourcing methodologies and category best practices.
- Unrivaled category expertise and transaction management capabilities.
- Single-creditor model for full vendor consolidation
- Full visibility with detailed KPI and spend reports
- Access to V-LINE’s rapidly expanding global vendor database
- Highly flexible e-catalogue platform
- Negotiated pricing and streamlined terms
Main benefits:
- One partner instead of thousands: simplify and consolidate procurement (single-creditor solution)
- Avoid maverick buying and ensure policy compliance
- Reduce costs by up to 21% through strategic purchasing and supplier leverage
- Standardize terms and conditions across formerly fragmented spend
- Improve decision-making through better data and analytics
- Minimize risk exposure from unmanaged suppliers or decentralized processes
