Tail Spend
The total amount for all tail spends
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Tail spend helps identify opportunities for consolidation, standardization, and cost savings within the procurement process.

KPI Definition

Tail Spend refers to the subset of procurement expenditures that typically involve low-value purchases, infrequent transactions, or non-strategic suppliers. This includes purchases that fall outside of the organization's core procurement processes or contracts

Business Value

Tail Spend is used by a business to evaluate outside contract expenses and costs

Movement Direction

Sample Formula

SUM (Invoice_Amount_In_USD)

Should Aim For
1
This metric should move down ie., decrease with time
2
3
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