It's true -- all types of business spending have a head and a tail. More often than not, tails are way bigger than heads. So, what makes up this huge part of your consulting spend? A series of fragmented, low-cost, one-time purchases. Individually, each purchase may not be that expensive, but when they add up over time, they become huge and can be a major drain on your bottom line.
So, you must be thinking just getting rid of all the expenses in this bracket will help you control your spending. No, it's not that easy. Not all the expenses landing in the tail are unnecessary. Tail spend may include necessary purchases, non-strategic purchases, duplicate purchases, and some utterly unnecessary purchases. So it's important to be able to differentiate them all. By identifying these items and categorizing them based on their priority, Companies can free up cash flow and use it to invest in more impactful projects.
It all starts by analyzing your tail spend and understanding where this money is going. In this episode of our Smart Consulting Sourcing podcast, Helene tells you how to go about it. Don't miss it.