GEP Event @Dolder Zurich

I was attending a GEP Worldwide event at The Dolder Grand in Zurich last week. Over 100 procurement leaders came together for insightful discussions on key trends shaping 2025 and the evolving procurement landscape.

Besides a great panel discussion, led by Catherine Hilton, which featured industry leaders Pauline King, Markus Kuhl, Jörg Grimm, and Giuliana Orsini, who were offering invaluable insights into the future of procurement and insight into how AI is shaping procurement there was a presentation on tail spend.

This was the presentation that struck me most. Tail spend management is often considered the bane of procurement professionals. With supplier onboarding costs averaging $1,000, it’s tempting to consolidate vendors to reduce administrative overhead.

However, I do believe we have to rethink our perspective on tail spend suppliers:

• Tail spend suppliers often drive innovation
• They can offer significant cost savings
• These vendors enhance supply chain resilience

In our current era of disruption, diversifying your supplier base through strategic tail spend management could be key to success. These suppliers are frequently:

• Smaller enterprises
• Local businesses
• Diverse-Owned Companies or Social Entreprises

They can be crucial in maintaining operations when prime suppliers face challenges.

While I appreciate the drive for consolidation and cost reduction, I believe a balanced approach is essential. We must weigh administrative efficiency against the benefits of a robust, diverse supply chain.

How is your organization approaching tail spend? Are you leveraging its potential for innovation and resilience?

#Procurement #SupplierDiversity #TailSpend #SupplyChainResilience #GEPEUTour2025 #GEPWorldwide #ProcurementLeaders