You probably have a tail spend problem. In other words, you are spending a lot more money and time managing the “extras” of your business than you realize. Any good procurement professional focuses on managing direct spend. But what about your indirect spend, the “everything else” that your business needs?
Like cleaning supplies for your warehouse. Or the ink & toner for your company’s hundreds of printers. This tail end of your spending can become a real problem. For example, if you’re wasting time managing suppliers that aren’t part of the main focus of your business. Or if you need high dollar items like janitorial and sanitation supplies, but you can’t get the best price.
To combat this issue, many businesses are turning to convenience services like Amazon. The question is, is using Amazon for your everyday business needs an effective solution?
It turns out there are six surprising problems with this model.