By leveraging an intelligent tail spend automation solution, CPO organizations can create new savings
Tail spends – or spends in the unmanaged non-core segments – hold untapped potential for savings. For an enterprise with total spending of US$1 Bn, efficiently managed tail spending can deliver savings in the region of US$ 6 to 12 Mn. CPOs have begun to realize this and they are extending their focus beyond high value – low volume transactions to tail spending to reduce costs and create a self-funded organization.
Tail Spend Optimizer powered by CnNXT – Wipro’s IP on intelligent tail spend automation – unlocks the hidden savings in tail spends for CPO organizations. CnNXT uses a light-touch, automated, and modularized tail-spend management process that complements the eProcurement suite of technologies, allowing users to focus on buy-channel compliance.
Wipro’s Tail Spend Optimizer is backed by a mature practice with more than 20 years of experience in sourcing and procurement and over 8,500 employees across ten countries and 30 delivery centers. Clients prefer Wipro because they can leverage custom-tailored commercial options that meet their business needs:
- A gain-share model in which the Wipro service fee is linked 100 percent to savings performance
- A partial gain-share, where a combination of a fixed and at-risk-variable model is proposed, and Wipro recovers a small percentage as a fixed charge, while the rest is linked to the savings performance
Managing tail spending requires immense effort from the CPO. The fragmented nature of business stakeholders and the trend of spend decentralization reduces visibility into spends and budgetary alignment—with lost opportunities for consolidation and cost reductions. By leveraging Wipro as a partner, these challenges are also being addressed, allowing the CPO to focus on core and strategic spending.