All procurement leaders work to eliminate extra costs in their supply chain. Until now, most have prioritized the core areas of their business. This has included essential tasks like optimizing larger contracts, increasing the efficiency of larger teams and re-negotiating contracts with the biggest vendors. Fairmarkit provides a simple, easy-to-use tool for driving value out of the 80% of transactions that make up 20% of annual spend. It enables procurement to create structure and visibility in their supply chain where there was none before.
Visibility: At Fairmarkit, we often use a metaphor to describe tail spend visibility: the tail is hard to see because it’s so far away from the body. We’re not poets, but the point stands. Tail spend is difficult to manage because it’s hard to find patterns in the high volume of low-value, one-off transactions that make up the tail. Fairmarkit’s data analytics create this visibility for you. Not only can you spot new opportunities for cost savings, but organizations that value lead-time can easily see which vendors provide the right delivery time at the right price.
Structure: With better visibility, you can better structure your supply chain. Fairmarkit automatically finds approved suppliers, shows you places where you’re buying the same SKU from different sources, and keeps you apprised of changes in market-pricing in real time. All of this gives you the leverage you need to create price competition, consolidate vendors and stay nimble in your strategic sourcing.