Tail Spend Management Solutions Market Size, Share & Trends Analysis Report By Solution, By End Use, By Region, And Segment Forecasts, 2021 To 2028

The global tail spend management solutions market is expected to witness significant growth over the forecast period. The demand for tail spend management is high among organizations as it helps them ensure that their purchases comply with contracts and policies. Tail spend management programs monitor, control, and track transactions in real time. Thus, the issues in the transactions can be identified and addressed before they are sent to suppliers.

Tail Spend Management Solutions Market Segmentation

Benefits offered by tail spend management solutions, such as increased productivity and efficiency and enhanced customer experience, are some of the major factors accentuating the market growth. The tail spend management solutions help the procurement team to focus on large contracts that add value to the business. Additionally, tail spending management solutions also help the procurement team in identifying opportunities for continuous improvements. Thus, organizations demand tail spend management solutions for improving their procurement functions. Furthermore, improvements in procurement functions help organizations increase their productivity by up to 20%.

Various industries worldwide use tail spend management solutions for managing their procurement functions seamlessly. The demand for tail spending varies by categories across different industries, such as machine parts for industrial goods companies, office supply items for banks, and chemical material supply for chemical operators. A chemical company with more than 3,000 suppliers requires complex procurement functions that demand tail spend management solutions. This is because tail spend management solutions help these companies in handling their vast number of transactions and huge supplier base.

Various venture capital firms are investing in companies offering tail spend management solutions, which helps them enhance their offerings and market reach. For instance, in October 2019, Fairmarkit, an artificial intelligence-enabled tail spend management software provider, raised USD 11 million in a Series A investment round, which was led by Insight Partners. This funding was used by Fairmarkit for accelerating the digital transformation of procurements.

The key players in the tail spend management solutions market include Corcentric, Inc.; GEP; Fairmarkit; Simfoni; Capita; Proactis Holdings Limited; ASM Technologies; Una; LSInextGen; and DXC Technology Company. These companies focus on strategies such as partnerships to expand their offerings. For instance, in July 2019, Jaggaer, a spend management company, announced its partnership with JPMorgan, an investment banking company. Through this partnership, the latter company started using Jaggaer’s spend management platform to reduce costs, streamline purchasing processes, and increase purchase oversight for businesses.

The companies offering tail spend management solutions use advanced technologies such as machine learning to streamline and optimize their supply chain operations. This is creating new opportunities for the market growth. Fairmarkit, a tail spend management platform provider, uses machine learning capabilities to make enhancements in its procurement control by 6% to 12%. Various tail spend management solution companies are entering into partnerships with advanced technology solution providers to enhance their offerings. For instance, in November 2020, Vroozi, a spend management platform provider, announced its partnership with Simfoni, a tail spend management platform provider. Through this partnership, the latter company’s spend analytics capabilities were offered alongside the former company’s procure-to-pay solution.