Infosys BPM

Procurement today is known for its innovative and agile initiatives to achieve savings, build sustainability as well as maintain diversity. This has urged procurement to continue its evolution and keep adding efficiencies to enhance operational effectiveness, sharpen the process, and drive strategic value.

In this edition, we put the spotlight on a few overshadowed elements such as MRO and tail spend that play a significant role in pushing procurement to its much-deserved status. Additionally, we also feature an insight into the factors essential to ensure a worthy source-to-pay user experience in procurement.

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The manufacturing industry faces challenges in all areas. As they try to recover and push ahead with upgrades or new development, they must overcome obstacles such as soaring energy prices and food shortages. Experts have found that Maintenance, Repair, and Operations (MRO) can help manufacturers tackle challenges and save up to 10% using integrators and up to 30% converting to original equipment manufacturers parts from phased-out products.

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Generally, tail spend is defined as the business spend that makes up about 80% of the transactions but only 20% of the total spend volume value. However, handling tail spend can become a nightmare for CPOs. The article, also featured in Nearshore Americas, highlights a few general guidelines on how to manage tail spend.

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Studies show that building a meaningful and relevant source-to-pay (S2P) user experience is one of the key aspects of an organisation that promises best-in-class procurement services. The question is: how can this be achieved? Let’s look at how these factors contribute to providing a premium S2P user experience.

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