Tail spend is often seen as the unglamorous part of business spending, but it can be a drain on company resources if left unmanaged. According to recent estimates, tail spend can account for up to 30% of a company’s total spending. That means it’s not just a small sliver of the pie – it’s a sizable chunk that can greatly impact the bottom line. Since you can’t manage what you can’t measure, data visualization gives you the quick insights you need to keep tail spend in check.
Let’s look at four ways to use built-in data visualization tools within VirtuTrax to monitor and manage tail spend.
1. Respond to Delivery Delays
When suppliers run behind on a part or product, every day it’s late can create a ripple effect throughout your organization. It might mean something as big as delaying the completion of an aircraft, or as small as making an extra store run to buy envelopes and packing supplies.
Seeing where delivery delays occur – at a glance, without digging into individual shipping timelines and statuses – can help you think and plan ahead. You can also see which suppliers are consistently behind on deliveries, which might lead to opportunities to find new vendors and supply partners.
2. Gauge Variances Over Specific Time Periods
Data visualizations give you endless opportunities to compare past and present data. View tail spend daily, weekly, bi-weekly, monthly, or even yearly to see how your spending patterns change over time.
3. Drill Down Tail Spend by Supplier, Category, and More
Data visualization tools can help you dive several layers deep into your data. See your tail spend by category, segment, supplier, region, and more from a single interface within VirtuTrax. This can help you find opportunities to consolidate vendors, see where bottlenecks might be occurring, and renegotiate contracts and rates based on order volume.
4. Identify Tail Spend Patterns By User
Are a handful of employees responsible for a large portion of your tail spend? Knowing who’s making purchases can help you keep a firmer grip on your budget. This helps you see who is doing their due diligence to see if expenditures are justified and which ones might need more training on conscious spending.
Get Data on Track with VirtuTrax
When left unchecked, tail spend can quickly balloon out of control. This can lead to wastefulness and inefficiency, as companies buy duplicate items or overpay for low-quality goods.
Data visualization is powerful because it translates these numbers and words into colorful, easy-to-understand charts. It makes it easy to see where your money is going, where your orders are, and other important details.
VirtuTrax does this for you automatically. We connect directly with each supplier’s ERP to provide the most accurate information about your tail spend. Contact us today to see a demo and discover how data visualization can improve your bottom line.