We’re proud to share that Keelvar has been featured in Gartner’s recent report, Innovation Insight: Managing Tail Spend Technology Solutions.

Tail spend makes up approximately 80% of transactions, but accounts for only about 20% of total spend. Gartner’s report reveals that despite advancements, the median procurement organization still leaves approximately 7% of spend unmanaged, presenting significant untapped opportunities for savings and risk mitigation.

Procurement organizations have begun to tackle this however, and Gartner estimates that by 2030, approximately 60% of procurement organizations will adopt tail spend technology solutions to drive cost management, risk mitigation, and support sustainability compliance.

This Innovation Insight specifically emphasizes the importance of addressing tail spend proactively through tailored technologies that align with organizational goals, an approach we very much agree with. Keelvar’s way of operating is and always has been striving for ‘the right tool in the right place’, and we encourage procurement professionals evaluating tail spend management solutions to consider the following questions. Are they looking for a platform that:

  • Executes tail spend sourcing autonomously end-to-end, including supplier selection and awarding, without manual intervention?
  • Enables procurement to automate rules-based workflows from intake to contract award, eliminating or minimizing user interaction while ensuring governance and compliance across categories and teams?
  • Manages rates and even utilizes market intelligence to initiate sourcing events at the best time?
  • Utilizes AI to easily create complex cost models and award scenarios, making optimal outcomes accessible without expertise?
  • Offers real-time feedback to bidders and that can be customized to ensure the best competitive outcomes in automated events?
  • Applies learnings from complex sourcing events (like feedback and evaluation models) to automate efficient, compliant processes for recurring, lower-value spot buys?
  • Offers support for both procurement staff and participating bidders throughout the entire sourcing process?

If they answered ‘yes’ to any of the above questions, Keelvar could be the tail spend management solution for their organization. Keelvar Autonomous Sourcing automates sourcing by giving procurement teams the ability to build custom sourcing automation, tailored to each spend category which in turn empowers end users to source within the rules set for them.

Here’s a simple example of how tail spend sourcing can be conducted in Keelvar:

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  1. Create a generic intake form which can be applicable for most tail spend requests. This could include:
  • Location
  • Item Name
  • Description
  • Unit of measure
  • Quantity
  • [Optional] Category: Tracking the spend category is an easy way to identify the types of spend for which the highest volume of requests is put in. If an increasing number of items in the same category are sourced via the workflow, proceed to create a more specific workflow for that category.

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  1. Identify suppliers which will likely cover most of the requests that may come in, and enable automatic supplier selection
  2. [Optional] Add a conditional approval step e.g. ‘If price is greater than X, require approval from Procurement Employee’. Keep in mind: the approver shouldn’t be a bottleneck.
  3. Select whether the award decision should be manually selected or auto-awarded based on a preferred scenario (again, avoid creating bottlenecks)
  4. Monitor the number of requests and requesters using the workflow and what the workflow is used for to create different, tailored variations.

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By adopting Keelvar’s tailored solutions, organizations benefit from:

  • Enhanced Spend Visibility: Keelvar's technology helps identify and classify previously unmanaged spend, uncovering hidden savings opportunities.
  • Improved Compliance and Risk Management: Automation reduces reliance on non-contracted suppliers, enhancing policy compliance and significantly lowering risk.
  • Efficiency Gains: Procurement teams can effectively manage greater volumes of transactions without additional staff, refocusing efforts on strategic initiatives.

Alan Holland, CEO of Keelvar, stated: “We are delighted to be featured in Gartner’s Innovation Insight report. Tail spend management has often been overlooked, but with Keelvar, organizations can turn this challenge into a strategic advantage, driving tangible savings and compliance improvements across their procurement functions.”

To discover more about how Keelvar can transform your approach to tail spend, get in touch.

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