Exertis Supply Chain Services Blog
Tail Spend Management is the process of managing the long tail of a supply chain, namely the procurement of indirect goods, small value orders and ad-hoc purchases.
Procurement functions are becoming increasingly constrained by insufficient resources. As a result, a growing number of med tech companies have begun to outsource the procurement of non-core materials and empowered supply chain partners to manage Approved Vendor Lists (AVLs) on their behalf.
By outsourcing the production of legacy medical devices to a contract manufacturing organisation (CMO), business unit managers can satisfy customer demands and maintain a minimum margin.