Global Tail and Tactical Spend Solutions Market Size (2024 – 2030)

Based on industry analysis, it is forecasted that the global tail and tactical spend solution market will attain a comprehensive market valuation of USD billion by the year 2030. The market is poised for growth within the evaluation period spanning from 2024 to 2030.

Industry Overview:

In the realm of managing strategic expenditure, which encompasses the top 80% of spending involving a select few crucial suppliers, most enterprises maintain strict control. However, there is a continuous pursuit of innovative approaches to oversee Tail Spend. While constituting merely 20% of the overall spending, tail expenditure contributes to about 80% of transaction volumes and contributes to the proliferation of suppliers.

The adoption of tail expenditure management systems offers advantages such as heightened productivity, efficiency, and an enhanced customer journey, thereby propelling market expansion. These solutions enable procurement teams to focus on substantial contracts that bring value to the organization. Moreover, by employing tail expenditure management systems, procurement teams can identify avenues for ongoing enhancements. Consequently, enterprises seek tail expenditure control solutions to elevate their procurement operations. Furthermore, alterations in procurement practices can potentially augment efficiency by up to 20%.

Diverse sectors worldwide rely on tail expenditure management systems to streamline their procurement activities. For instance, industrial goods firms require machine parts, banks need office supplies, and chemical operators rely on chemical material supplies—each demonstrating a high demand for tail expenditure solutions. In the case of a chemical company managing over 3,000 suppliers, the complexities of procurement necessitate the utilization of tail expenditure management systems. These solutions facilitate larger enterprises in managing their extensive transaction volumes and supplier networks.

Numerous venture capital entities are investing in companies offering tail expenditure management solutions, enabling them to broaden their capabilities and market outreach. For instance, in October 2019, Fairmarkit, a provider of artificial intelligence-powered tail expenditure management software, secured USD 11 million in a Series A funding round led by Insight Partners. Fairmarkit utilized these funds to accelerate the digital transformation of procurement processes.

Impact of COVID-19 on the Industry:

COVID-19 remains a significant concern for global economies, as evidenced by the decline in U.S. exports from April 2020 to April 2021, despite a concurrent rise in imports. The market is indicating efforts toward recovery. Nonetheless, this suggests that industries such as Healthcare/ICT/Chemical will face direct repercussions, thereby creating substantial demand for Tail Spend Management Solutions.

Market Drivers:

Reduction in Procurement Operation Costs to Fuel Solution Demand:

Achieving cost reductions that yield both immediate and sustained impacts is imperative. Managing procurement expenditures is a strategic avenue to accomplish this objective. The costs associated with procuring goods and services externally serve as critical performance metrics for organizational success. Tail spending solutions aid companies in lowering procurement expenses by efficiently organizing supplier transactions.

Enhanced Procurement Experience for End-Users:

Tail and tactical spend solutions elevate the consumer experience throughout the procurement process. This enhancement assists diverse companies and organizations in refining their supply chain management practices and elevating end-user satisfaction.

Global Solutions for Tail and Tactical Spending - By Solution

• Expenditure Analysis
• Order Handling
• Contract Administration

Expenditure analysis involves the gathering, refining, categorizing, and examination of spending data, either through specialized software or ad-hoc spend cubes. It encompasses scrutinizing spending data to cut costs, enhance efficiency, or strengthen supplier relationships.Order handling, which touches nearly every facet of the supply chain, is crucial for modern organizations. With multiple stakeholders involved, such as suppliers of parts and components, assembly and packaging services, and distribution centers, manual processes are often required to manage orders effectively. Automating these manual tasks through an Order Management System (OMS) can reduce costs and improve accuracy.Contracts necessitate ongoing management throughout their lifecycle, including adherence to negotiated terms, compliance monitoring, and periodic review for renewal or modification. The manual nature of these tasks, involving personnel from finance, legal, and procurement departments, is not only time-consuming and costly but also prone to errors, leading to increased expenses, missed deadlines, and compliance issues.

Global Solutions for Tail and Tactical Spending - By End User

• BFSI
• Transportation & Logistics
• Healthcare
• Retail
• Others

Tail spending management systems find application across various sectors globally to streamline procurement activities. Industries such as industrial goods, banking, and chemical operations rely on tail spending management for procuring items like machine parts, office supplies, and chemical materials. These solutions are particularly crucial for managing complex procurement operations involving numerous suppliers, such as those in the chemical industry with over 3,000 suppliers.

Venture capital firms are actively investing in companies offering tail spending management solutions, enabling them to expand their capabilities and market presence. For instance, Fairmarkit, a provider of AI-enabled tail spending management software, secured USD 11 million in Series A funding led by Insight Partners in October 2019. This investment accelerated Fairmarkit's efforts toward digital transformation in procurement processes.

Global Solutions for Tail and Tactical Spending - By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The global analysis of Tail Spend Management Solutions encompasses key regions including North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America holds the largest market share due to the presence of leading companies in the sector. However, Asia-Pacific is expected to witness the highest growth rate over the forecast period (2024-2030), driven by increasing demand in countries like India.

Global Solutions for Tail and Tactical Spending - By Companies

1. Corcentric, Inc.
2. GEP
3. Fair market
4. Simfoni
5. Capita
6. Proactis Holdings Limited
7. ASM Technologies
8. Una
9. LSInextGen
10. DXC Technology Company

These companies focus on expanding their product offerings through strategies such as collaborations. For instance, in July 2019, Jaggaer, a spend management firm, collaborated with JPMorgan, a financial services company, enabling the latter to leverage Jaggaer's spend management platform for cost reduction, streamlined procurement processes, and enhanced purchase monitoring for enterprises.

Recent Developments in the Global Crowd Sentiment Analytics Market

• Business Investment: In 2020, Fairmarkit raised USD 30 million in Series B funding to expand its procurement platform for Fortune 500 companies and beyond.
• Merger & Acquisition: In April 2019, Determine, Inc. (OTCQB: DTRM), a leader in global Source-to-Pay and Enterprise Contract Lifecycle Management solutions, completed the acquisition of substantially all assets of Concentric, a rapidly growing provider of procurement and financial process automation systems.