Tackling Tail-Spend to Unlock Savings - Cloned

Tackling Tail-Spend to Unlock Savings
Executive Summary

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.​

Business Problem

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.​

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condiments
Solution

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.​

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salt and pepper packets
Benefits/Return on Investment
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Tail-spend Management

Tail-spend management drove real value through savings and efficiencies and uncovered additional opportunities​ to save even more.

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Total Savings

13% average total savings delivered through ​RFP negotiations and supplier/specification efficiencies.

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Total Savings

$8.7MM in total savings delivered across participating countries​.

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Market Assessment

$40MM in additional opportunity identified as a result of market assessment and bench-marking activity.