How to Pick the Best Tail Spend Software: Comparing Top Solutions
How to Pick the Best Tail Spend Software: Comparing Top Solutions
Effective tail spend management is essential for maximizing value across your procurement processes. The right technology can improve your financial health and help you keep a tight lid on procurement costs.
The challenge lies in selecting the best tail spend software solution for your needs. With so many tools available, it’s easy to fall into the trap of investing in an unreliable system or staying frozen in indecision.
This guide compares five leading tail spend software systems that can help you improve spend management and cost control. It covers which features to look for, plus a few best practices for managing tail spend more effectively.
Download the free guide: Spend Analysis Toolkit
The risks of poorly managed tail spend
Tail spend purchases are the most common form of uncontrolled spending. When push comes to shove, many procurement teams focus too heavily on larger expenses, underestimating the cumulative risks of poorly managed low-value transactions.
Common tail spend risks include:
- Inefficient purchasing
- Productivity loss
- Lack of visibility and control
- Cash flow problems
- Inaccurate financial planning
To avoid these dangers, you need a sophisticated tail spend software solution. The best systems provide procurement centralization and real-time spend visibility, automatically coding and tracking all your indirect costs in one dynamic platform.
Evaluating top tail spend software options
Selecting the right technology results in tighter purchasing controls and better financial outcomes. After researching the top tail spend software options on the market, these are five of the most reliable solutions.
1. Order.co
Order.co is a comprehensive and intuitive tail spend software solution that simplifies indirect spend processes. The platform centralizes tail spend transaction data, accelerates the tail spend management process using automated workflows, and provides complete purchasing visibility through real-time insights and segmented analysis dashboards.
By providing greater financial transparency and controls, Order.co helps you keep a tight lid on tail spend through smarter insights, stricter approval processes, and consolidated supplier management. Furthermore, it’s one of the few software tools specifically designed for optimized tail spend management.
[Order.co] congregates all ordering of supplies to one platform. Since all orders go through an admin, you can cut down on miscellaneous spending. It also makes reordering products extremely easy and convenient.
– Joel G., Alternative Medicine, via GetApp
Key features
- Centralized, automated spend management workflows with customizable budget limits and approval routing
- Advanced spend analysis tools that deliver 100% spend visibility to help you identify cost-saving opportunities and spending patterns
- Robust integrations with major financial systems, including Sage Intacct, NetSuite, and QuickBooks Online
Pros
- Automated budget controls and multi-level approval workflows ensure every purchase complies with company procurement policies and contract terms
- Easy connections with most major ERP and finance platforms unify procurement data, support real-time spend visibility, and enable accurate reporting
- Centralized product catalogs simplify purchasing and eliminate rogue spending by guiding users to select from pre-approved products and suppliers
We have many people in our organization ordering various supplies to various locations. Order.co allows us to centralize our purchases, have a common catalog, check orders, and give approval. Order.co is perfect for our type of organization with many locations.
– Aissata D., Head of Finance and Procurement, via Capterra
Cons
- Some users have requested more in-depth reporting functionality and customization options, although others are pleased with recent improvements in this area
- While the consolidated supplier base feature enables much faster AP invoicing processes, it reduces control over your supplier risk since it increases reliance on a few key vendors
2. PayEm
PayEm is a spend management platform designed to automate and centralize the procure-to-pay processes. It provides corporate cards, budgeting controls, and automated invoicing to help manage tail spend and direct procurement more efficiently.
Key features
- Virtual and physical corporate cards with dynamic spending limits for more controlled purchasing
- Customizable approval processes based on HRMS and ERP data
- Centralized purchasing and approval workflows for easy data sharing and audit trails
Pros
- Real-time analytics and control improve purchasing visibility and data-driven decision-making
- Standardized purchasing reduces maverick spending by ensuring all purchases are pre-approved and compliant
- Cross-border payment functionality supports faster accounts payable processes for international suppliers
Cons
- Lack of supplier and invoice consolidation functionality results in slower, more resource-intensive invoice processing
- Multiple vendor purchases require separate corporate card approvals, which can delay sourcing and create inefficiencies
Spend Analysis Toolkit
Unlock savings, improve supplier relationships, and make smarter procurement decisions with clearer spend insights. Download the ebook to get started.
3. Procurify
Procurify is a cloud-based procurement platform that provides real-time purchasing insights and workflow automation for AP invoice processing, approvals, and vendor management. It leverages AI and machine learning to track and manage tail spend data.
Key features
- Customizable approval routing that provides visibility throughout the procure-to-pay process
- AI-powered spend management that unifies procurement data for faster, more strategic decision-making
- Centralized supplier contract management for tracking spend against total contract value
Pros
- Real-time expense tracking and mobile receipt capture simplify tail spend control
- User-friendly interface encourages adoption and policy compliance
- Reloadable physical and virtual spend cards enable controlled, pre-approved purchasing
Cons
- Reports of issues synchronizing purchase order data with ERP software, forcing manual PO creation
- Complex navigation can make it difficult to find specific items, orders, or invoices
4. Fairmarkit
Fairmarkit is an AI-powered autonomous sourcing platform that automates repetitive spend and leverages strategic sourcing tools to find the best pricing for high-volume purchases. With a strong focus on corralling indirect costs, Fairmarkit is one of the best tail spend software solutions for large enterprises.
Key features
- Built-in RFQ sourcing automation specifically designed for improving tail spend management
- Complete source-to-pay functionality that shortens procurement cycle times
- Intelligent supplier recommendations based on vendor performance, procurement history, and RFX details
Pros
- Strong focus on optimizing non-strategic and off-catalog tail spend through competitive sourcing
- Access to an extensive global supplier network of registered vendors for broader sourcing options
- Integrates with most major ERP and financial systems, including SAP, Coupa, and Oracle
Cons
- Built for large global enterprises, so some features may be unsuitable for small- and mid-market businesses
- Reporting functionality is quite limited compared to other platforms, making it difficult to unlock granular visibility for spend performance
5. Ivalua
Ivalua is a comprehensive source-to-pay software system designed to automate procurement control, improve spend efficiency, and increase purchasing transparency. It leverages AI tools and machine learning to optimize various elements of the source-to-pay cycle, including contract management, spend analysis, and strategic sourcing.
Key features
- Complete source-to-pay functionality covering strategic sourcing, supplier risk, invoicing, and analytics
- Direct and indirect spend management for complete spend visibility
- Centralized procurement orchestration to speed approvals and enhance transparency
Pros
- Flexible and highly configurable; ideal for large, multinational corporations with complex requirements
- Tackles nearly every step of the spend management process, from request intake to monitoring environmental impact
- Segmented spend analysis tools help control tail spend and identify cost-reduction opportunities
Cons
- Steep learning curve can result in slower user adoption rates and longer training processes
- Reports of recurring technical bugs and an unstable testing environment
Features to look for in tail spend software
The best tail spend software solutions are packed with features that target the risks and costs of uncontrolled indirect spend. They unlock total spend visibility, boost productivity through consolidated workflows, and cut costs related to your procurement process.
Granular spend analysis and reporting
Spend analytics is your best defense against uncontrolled spend. It helps you understand where your biggest opportunities lie and highlights the corrective actions needed to reduce the financial impact of tail spend.
For example, Order.co’s detailed spend analysis functionality provides granular spend visibility. It lets you isolate instances of maverick spending and accurately categorize tail spend activities to gain more control and transparency over where your money is going.
Cozen O’Connor, a $470 million law firm, implemented Order.co in 2016 to consolidate procurement data and reduce purchasing costs. In under 24 hours, the firm identified over 10% in cost-saving opportunities. The software helped them achieve 100% line-level spend visibility, resulting in $63,000 in annual savings through strategic sourcing.
Automated and customizable approvals
Automation ensures every tail spend purchase is routed to the right person for approval based on rules determined by your spend policies and supplier terms. This simplifies compliance for your team and encourages high user adoption.
Order.co lets you set customizable budgets tied to your organizational goals. These limits are integrated into automated purchasing and approval workflows to save time, reduce manual administration, and prevent data errors.
Stefanie Teintze, Facilities & Property Management Specialist at CorePower Yoga, says, “By implementing controls and approval processes, Order.co has allowed us to essentially eliminate all unapproved spending, which had gotten as high as $50,000 per month.”
Procurement centralization
Keeping track of your transactions in one place is critical to managing tail spend effectively.
When procurement data is spread across siloed systems, the accuracy of your spend analyses drastically decreases. And if purchasing is largely ad hoc instead of strategic, you risk inconsistent quality while suffering from slower procurement processes that sap your productivity.
Centralized procurement software like Order.co unifies your transaction data through reliable integrations with accounting and ERP systems. It helps you accelerate the time to purchase by bringing all your vendors and products together for a faster, simpler buying experience.
Maria Jimenez, Sourcing Manager at Pacaso, recently implemented Order.co to centralize supply chain processes and escape the headaches of managing hundreds of items across countless POs. “We're saving dozens of hours each month, especially during peak seasons,” says Maria. “I no longer have to be engaged in so many different RFPs because Order.co leverages their vendor network for our common goods and stock supplies to automate the ordering process.”
Spend Analysis Toolkit
Unlock savings, improve supplier relationships, and make smarter procurement decisions with clearer spend insights. Download the ebook to get started.
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Best practices for tail spend management
Effective tail spend management isn’t just about choosing the right software system. You also need a strategic approach that helps you control indirect spending—regardless of which procurement software you use.
Stick to these best-practice methods to manage tail spend more effectively:
- Segment tail spend costs: Divide indirect spending into logical spend categories to establish granular visibility and extract more detailed insights from spend analyses.
- Centralize tail spend data: Guarantee data accuracy by channeling 100% of addressable spend through a central platform. Ensure data is properly cleansed, categorized, and stored to avoid misleading reports and improve decision-making.
- Consolidate indirect supply vendors: Reduce suppliers and improve tail spend control by finding opportunities to consolidate indirect purchases. This simplifies tail spend management, increases leverage in negotiations, and strengthens supplier relationships.
- Prioritize user adoption: Make it easy for employees to follow procurement policies and contract terms. Set custom rules and implement supplier catalogs as guardrails to guide users through a simple, compliant buying experience.
Get tail spend under control with Order.co
Tail spend software is essential for controlling indirect expenditures and driving more value from your procurement process.
Order.co’s intuitive platform encourages user adoption with customizable controls that promote full compliance with your purchasing policies and contract terms. It helps reduce maverick spending, automate manual tasks, and deliver complete spend visibility across all your purchasing channels.
With Order.co, you gain access to powerful spend management features, including:
- Automated expense coding and invoice processing
- Centralized purchasing with real-time spend visibility
- Reliable integrations with accounting software and ERP systems
- Custom approval workflows and budget control
- Advanced spend analysis and reporting tools
Schedule your personalized demo to see how Order.co can help you control tail spend and maximize cost savings.
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