In today’s complex business landscape, procurement leaders face numerous challenges in optimizing their spending and maintaining visibility across their supply chains. One area that often flies under the radar but can have a significant impact on an organization’s bottom line is maverick spend, also known as tail spend or rogue spend.
The Growing Challenge of Tail Spend Spend
According to a recent study by WBR Insights, a staggering 91% of procurement professionals recognize tail spend as a challenge in their organizations. Even more concerning, 87% of respondents reported an increase in maverick spend over the past 12 months, with 25% noting a significant increase.
This trend underscores the urgent need for procurement teams to address tail spend proactively. Failure to do so can result in:
- Reduced cost savings opportunities
- Lack of visibility into organizational spend
- Weakened supplier relationships
- Increased risk and compliance issues
The Power of Group Purchasing Organizations (GPOs)
One highly effective strategy for tackling maverick spend is joining a Group Purchasing Organization (GPO). In fact, 65% of GPO members reported a reduction in maverick spend after joining. But not all GPOs are created equal. Enter SDI’s Supply Chain Cooperative – a revolutionary solution designed to transform your procurement processes and eliminate maverick spend.
Introducing SDI’s Supply Chain Cooperative
SDI’s Supply Chain Cooperative is a dynamic alliance that revolutionizes MRO procurement and supply chain management. By leveraging collective buying power, we offer exclusive pricing and substantial discounts from our network of trusted suppliers. Here’s how our Cooperative can help you tackle tail spend and achieve procurement excellence:
1. Significant Cost Savings: Members enjoy 15-20% average cost savings through negotiated discounts and advantaged pricing, all at no cost to join. These savings make it easier to keep spending within approved channels, reducing the temptation for maverick purchases.
2. Increased Spend Under Management: Our ongoing spend analysis and profit-sharing opportunities help you identify areas of tail spend and bring them under control. This increased visibility is crucial for maintaining compliance with procurement policies.
3. Streamlined Procurement: Each member is assigned a dedicated Member Ambassador who brings specialized expertise in sourcing, contract negotiation, supplier management, and data analytics. This personalized support simplifies the procurement process, making it easier for employees to follow approved purchasing channels.
4. Broad Category Access: Access to a network of leading suppliers and brands across all key categories means you’re less likely to go outside approved channels for specialized purchases. Our diverse supplier network covers general industrial, PPE, janitorial supplies, power transmission & bearings, pipe, valves & fittings, electrical, lab supplies, office supplies, printer/apparel, security services, and staffing.
5. Flexibility: Members have the freedom to start or stop whenever they want and can buy as much or as little as they want from any or all categories. This flexibility allows you to adapt the program to your specific needs, ensuring it aligns with your procurement strategies.
Real Results: A Member’s Perspective
Don’t just take our word for it. Here’s what one of our satisfied members has to say about the impact of joining SDI’s Supply Chain Cooperative:
“SDI is an excellent GPO partner. As an organization, they bring excellent leverage capabilities as they can leverage the collective buying power of a number of companies. SDI’s enhanced negotiating power leads to cost savings, access to high-quality suppliers, risk mitigation, flexibility, and scalability. Partnering with a reputable GPO has optimized our procurement strategy.”
Coe Hawkins
Sr. Director Procurement & Global Sourcing
Blue Diamond Growers
Your Roadmap to Procurement Excellence with SDI
Joining SDI’s Supply Chain Cooperative is a straightforward process designed to quickly deliver value:
1. Onboarding: Your journey begins with a simple onboarding form.
2. Ordering: Choose from multiple ordering avenues based on your convenience and ease. Your Member Ambassador is always available to assist with ordering.
3. Planning: Your Member Ambassador facilitates client account access to your preferred suppliers, initiating the LOP process and requesting quotes.
4. Payments: Payments are made on your PO and submitted directly to the supplier, maintaining your existing financial processes.
5. Ongoing Support: Your Member Ambassador provides continuous communication, ensuring you’re not experiencing any challenges and offering insights into new supplier promotions and contracts.
Transform Your Procurement Strategy Today
Don’t miss out on the opportunity to join the Supply Chain Revolution and take your MRO procurement strategy to the next level. By partnering with SDI’s Supply Chain Cooperative, you’re not just addressing tail spend – you’re taking a crucial step towards procurement excellence and long-term business resilience.
Ready to unlock transformative supply chain performance and eliminate maverick spend? Head over to our Supply Chain Cooperative page, fill out the brief form and one of our team members will get back to you with more information on this exciting program, that will help you dominate in the ever-changing world of MRO and multi-site facility management.
