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Defining and categorizing tail spend for a better management thereof

Paasman, T. (2022) Defining and categorizing tail spend for a better management thereof.

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Abstract:Tail spend management is a topic on which little research is done. In this paper, it is emphasized why tail spend management is important, what purchasing situations are related to tail spend, what challenges or problems can occur with regards to tail spend and how actionable solutions can solve the challenges or problems for tail spend. Furthermore, concrete advice on defining tail spend for organizations is given. The results of this research will add to purchasing management theory. Moreover, a theoretical framework for tail spend management is developed based on this research. At the start of this research, an extensive literature review is been done. After that, qualitative data is gathered by interviewing twelve purchasing professionals, working for companies in different industries, based in three countries. Thereafter, the interviews have been coded: open, axial and selective. The results of this qualitative research are compared with literature, and have lead to a discussion on tail spend management. The following results have been found. First of all, challenges for tail spend are related to the supplier, contract management, invoicing, the internal organization, capacity and uncertainty regarding tail spend. Secondly, in order to solve these challenges, the following solutions for tail spend are categorized: supplier management, contract management, outsourcing, software, internal processes, company regulations, company strategy, defining tail spend and business case. Despite the fact that tail spend is perceived different by organizations, in terms of both volume as well as in terms of perception, tail spend can be managed effectively by implementing the solutions that have been listed.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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