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In this article, Serge Milman explains the high costs of adopting a tail spend category. Unmanaged Spend ≠ Spend Category. Tail Spend is not a spend category, and thus cannot be sourced effectively. Tail Spend – or more accurately, Un-managed Spend – is an aggregation of spend and vendors that typically represent 40%-60% of total spend. Attempting to source Tail Spend as a category makes about as much sense as including Professional Services and Technology Hardware into a single RFP….
If it seems like your company burns through money, Serge Milman may provide insight into the reason why.  If you’ve spent any time at all around Procurement professionals, then you’ve likely heard about Tail Spend Sourcing. There are numerous consultants, technology providers, outsourcing providers and even some Procurement Leaders singing its praises. That’s unfortunate. Organizations pursuing Tail Spend Sourcing are explicitly communicating that they’ve given up on managing 60%+ of their supplier base, and perhaps more importantly, that they are…
Umbrex is pleased to welcome Serge Milman with Sourcing Advisors Group. Serge is proven leader with extensive expertise eliminating supply chain constraints, generating 25%- 40% vendor spend cost reduction, and improving vendor quality of service. I lead through fact-based engagement, skilled at building stakeholder support, and have successfully improved team expertise resulting in more effective engagement and retention. He is a former executive with Mitchell Madison Group, McKinsey & Co and Wells Fargo Bank….