A centralized Tail-Spend program reviewing non-core categories gives markets access to savings from leveraged spend on products, such as condiments, across markets that aren’t currently benefiting from buying together.
Tail-spend is one of the biggest sources of incremental savings available. It requires leveraging spend volumes to unlock savings but requires process discipline to define a structured approach and accelerate decision-making, which most companies don’t have the time or resources to do. HAVI identified an opportunity to help one of our customers do just that.
HAVI managed the tail-spend across non-core food items in various markets using analytical tools and proven methodologies to deliver savings fast. The funding for our services was derived from savings generated from year 1 based on agreed estimated annual volume, which meant there was no risk to our customer.
Tail-spend management drove real value through savings and efficiencies and uncovered additional opportunities to save even more.
13% average total savings delivered through RFP negotiations and supplier/specification efficiencies.
$8.7MM in total savings delivered across participating countries.
$40MM in additional opportunity identified as a result of market assessment and bench-marking activity.