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Tail Spend Management

Reduce costs and time spent on purchasing c-products

With Tail Spend Management, we consolidate the purchase of c-products, lower the number of suppliers and create results on the bottom line.

Reduce the number of suppliers

With Tail Spend Management, we take over orders, stock and delivery of the purchase of c-products in the long tail. This brings together up to 80 percent of the supplier portfolio under one strategic partner, reducing the complexity and cost of managing many small suppliers. In addition, resources in the purchasing department are freed up for use on the company's other strategic suppliers.

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Bottom line results

80 percent of the supplier portfolio typically accounts for only one-fifth of the company's total purchases. The number of suppliers drives costs in the form of, for example, contract maintenance, ordering and invoicing. This means that large direct savings can be achieved through consolidation, and that the resources in the purchasing department can be focused on creating new value.

Concrete savings

The collaboration with our current customers shows savings of up to 25 percent.

Less complexity

You leave the responsibility for all or part of the day-to-day operations of the procurement in question to us. We create transparency in purchasing, which can thereby be done strategically and optimized.

Less hours

We take over the time-consuming work of maintaining prices, master data, etc., which optimizes the time consumption in the daily operation. This allows you to focus on your core tasks.

Operational optimization

We handle all communication with the subcontractors as well as all financial transactions.

Tailored to your business

For production and maintenance
Strategic consolidation of procurement is adapted to the company's type, size and current procurement department. We have experience with Tail Spend Management in relation to both the purchase of components that are part of the company's products and components that are used in the production line's operation and maintenance.

Professional inventory management
You decide whether the subcontractors should continue to deliver directly to your production facilities, or whether Solar should manage the warehouse with the products in question to achieve shorter delivery time and maximum delivery security. In any case, Solar handles the financial transactions.

Better alternatives
Concrete savings can be achieved by substituting parts of your purchases with alternatives of the same or higher quality. This is due to Solar's strong market position in Northern Europe, which provides favorable contractual relationships with manufacturers. You can decide for yourself whether you want to continue with existing subcontractors.

Do you (also) tie up more capital than necessary?

A study from Nordea shows that Scandinavian companies tie up 36 percent more capital compared to their European competitors. This is, of course, a major challenge for our competitiveness. Tail Spend Management is therefore an integral part of our TCO approach, where we create transparency in the sourcing setup and thereby reduce total costs.

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