Tail Management
Working as an extension of your Procurement and Finance teams
TAIL www.tailmanagement.co.uk
MANAGEMENT
What is Tail Management?
Some of our Tail Management clients:
Tail Management is the process of managing the long tail of your supply chain, namely the procurement of indirect goods, small value orders and ad-hoc purchases. According to the Pareto principle this is made up of around 80% of your suppliers yet only accounts for 20% of your spend.
0844 8221700 www.tailmanagement.co.uk
Are you dealing with too many small, indirect or non compliant suppliers? Our tail management team can help. We work as an extension of your procurement team to manage this labour intensive tail supply chain on your behalf. This allows you to consolidate your supplier base across multiple products and services, whilst refoucusing key personnel on the areas which really matter to your business. We can: •
Reduce the total cost of your procurement
•
Increase efficiency and reduce workload across your business
•
Allow you to consolidate, reducing supplier numbers
•
Increase your compliance
•
Increase control and visibility of your expenditure
•
Improve distribution efficiencies across your supply chain
Utilising our national logistics network, state of the art inventory management systems and specialist procurement expertise, we can manage and source all your indirect supplies and distribute them quickly and effectively across national multi-sited businesses.
TAIL
MANAGEMENT
Situation Gala Coral had approximately 100 suppliers in total, with only 18 of those accounting for 80% of the groups spend. They were therefore looking to reduce the number of suppliers and consolidate all the commodities under the same roof with a view to reducing total expenditure including hidden costs.
Our solution
1
TAIL
1 Invoice
Gala Coral
MANAGEMENT
Consolidated Delivery 0B10 Compliant
1120 Product Lines
100 100 Suppliers Invoices
Phase 1 has seen our Tail Management team take over the products and services from 4 main suppliers, approximately 30 smaller suppliers and all Gala Coral’s ad-hoc suppliers. This has provided Gala Coral with higher visibility and control of spend, reduced costs of procurement and greatly reduced workloads across the procurement and finance departments.
Logistics efficiency Consolidating deliveries has improved supply chain efficiency and substantially reduced workloads across Gala Coral’s logistics and warehousing teams.
Previous situation at Gala Coral
x x
= =
2,840
Man hours spent a month unloading, checking, sorting and administrating deliveries across all sites
142 Gala Coral sites
20 Deliveries per month
20 Man hours per month
Under our Tail Management Solution
x x 142 Gala Coral sites
= = 1 Delivery per month
Man hours spent a month across all sites
1 Man hour per month
“By Using Tail Management we have been able to consolidate the majority of our indirect and ad hoc purchases under a single supplier, reducing workloads whilst also delivering immediate cost savings of £60,000 in the first 3 months.” Purchasing Director, Gala Coral Group
142
2,698
Man hours saved per month
£60,000 Savings in the first 3 months
Tail Management product lines provided to clients include: Green charity chips
Wicker baskets
Water griddle scrapers
Plastic fruit
Camper vans
Glass display cases
Till Rolls
Hay
Panini grills
Situation Waitrose has over 280 branches nationwide, making it the sixth largest grocery retailer in the UK. Like many national retailers they were facing issues with their indirect supply chain due to internal time restraints and limited control. Waitrose were sourcing around 150 indirect products from 30 suppliers and wanted to streamline the process for both ordering and distribution. It also became apparent that too much time was being spent processing invoices to various addresses with no real centralisation. In addition, many smaller suppliers of lower value and lower volume items were unable to conform to the new ordering criteria brought about by the new OB10 e-invoicing system.
Solution After an initial audit, Waitrose’s indirect suppliers were brought under our Tail Management solution. This leaves Waitrose’s internal procurement staff free to concentrate on the key areas of their business. With no change to the front-end in terms of user experience, orders are still placed online through their own purchasing system. Our solution provides full compliance with their paperless e-invoicing system (OB10) and payment terms are now standardised across the service. Finance also benefits from one invoice for all indirect products and services which, along with our management reporting, provides clear visibility and control of expenditure.
“By using OfficeTeam’s Tail Management service Waitrose have benefited from reduced procurement costs, increased purchasing control, greater visibility of spend and improved distribution efficiencies. So much so that we are now working together to further rationalise the supplier base.” Purchasing Manager, Waitrose
Tail Management Support Our Tail Management team are experts at what we do. Our skills and experience are rooted in our national logistics and warehousing capabilities.
National Service, Local Delivery As part of our Tail Management service, we will consolidate multiple consignments from various suppliers, for one onward delivery. With 3 regional distribution centres and 13 local distribution centres across the UK, you can rest assured you will always receive a fast and reliable service for all of your indirect product services. This is supported by our fleet of vehicles (including electric and bio fuel vans) and in house logistics team, who are experts in providing you with:
99.9% KPI delivery performance (against 97% market rate)
• Fast, local delivery • Flexible delivery schedules • Tracked deliveries and online PODs • In-house team of uniformed drivers • Consolidated deliveries for minimal carbon emissions
Outsource your stock management Our Tail Management team operate a full warehousing and inventory control system, enabling us to stock and manage your bespoke items and ensure you receive the right product, when you need it. By outsourcing your stock management you can free up valuable space in your own facilities and minimise warehouse and distribution charges. Our intelligent control system is flexible and will manage stock levels to ensure timely deliveries and reduce working capital.
Reducing your impact on the environment By using our Tail Management service, we will help to reduce your environmental impact through our: • Electric and biofuel vehicle fleet • Intelligent route planning to reduce CO2 emissions • Environmental appraisals and management reports • Use of sustainable and recyclable products and suppliers • Sustainable packaging • Close the Loop paper recycling scheme • Furniture and toner recycling • Managed deliveries
Quality Assurance When you entrust your sourcing, supply and delivery to us, you can be confident that we adhere to the same high standards of quality and service that you would expect in your own business. We pride ourselves on holding the ISO 9001 accreditation for quality management and 14001 for environmental management. Independent accreditations ensure that we are constantly implementing, maintaining and improving our environmental and quality management systems.
How do we Implement a Tail Management Solution?
Stage 1 - Initial Audit
Stage 2 - Audit
• Meet key stakeholders
• Price comparisons
• Identify key category and supplier issues
• Product alternatives
• Review of practices and processes
• Calculation of cost savings
• Analyse purchasing volumes and pricing
• Detailed report clearly outlining financial implications
• Assess logistics across the supply chain
Why use Tail Management? Are you looking to reduce costs?
Are you facing issues with non compliant suppliers?
By consolidating your indirect suppliers, products and services under one source, we allow you to remove the soft costs of procurement. Our solution allows you to leverage spend and utilise bulk buying efficiencies whilst reducing internal costs in order to reduce the total cost of your procurement. Our service includes ad-hoc, low volume and low value orders allowing you to remove hidden costs across the supply chain.
We operate standard payment terms and our IT systems integrate with all major purchasing and e-invoicing systems ensuring that we can provide a fully compliant solution for all products and services we provide and any suppliers we manage on your behalf. This includes full compliance for the OB10 e-invoicing system which many smaller suppliers are unable to adhere too.
Looking for better service from your suppliers?
Looking to increase visibility and control over your expenditure?
We are committed to delivering you with the highest service levels in the Industry. We are dedicated and passionate about our business meaning you can always expect more from our team.
Our consolidated invoicing, bespoke product catalogues (which can be tailored on a site by site basis), online ordering, specialist management reporting and regular account reviews provide you with full visibility and increased control over your expenditure.
Do you find it time consuming dealing with too many indirect suppliers? Our Tail Management team will work as an extension of your procurement team, managing the labour intensive tail supply chain on your behalf. This reduces administration and workloads across your procurement and finance teams, leaving them free to concentrate on the key areas of your business.
Stage 3 - Planning
Stage 4 - Implementation
Stage 5 - Ongoing
• Create and approve project plan with timescales
• Rollout across multiple sites nationwide
• Management reporting and quarterly account reviews
• Create online ordering platforms and test
• IT, supply chain inventory and invoicing system integration
• Product alternatives and innovations
• Staff training and user awareness
• Implementation team remain involved for 3 month period
• Launch bespoke online ordering platform
• Service level improvements
“By using OfficeTeam’s Tail Management service, Waitrose have benefited from reduced procurement costs, increased purchasing control, greater visibility of spend and improved distribution efficiencies. So much so that we are now working together to further rationalise the supplier base.” Purchasing Manager, Waitrose
TAIL www.tailmanagement.co.uk
MANAGEMENT