Mphasis / 2019–2020
Tail Spend Consolidation
A global procurement engagement across 26 countries, focused on consolidating tail spend, negotiating with suppliers and moving the engagement toward break-even.
Tail Spend Consolidation
- Tail spendDispersed small vendors
- Global suppliersAcross 26 countries
- Procurement engagementConsolidation & negotiation
- Supplier strategyConsolidation objective
- Engagement economicsApproaching break-even
The procurement engagement involved a fragmented base of small vendors across 26 countries.
Read the complete architecture & boundaries
A procurement operating model. Exact savings, supplier reductions and financial metrics are not depicted.
- Understand the tail. The procurement engagement involved a fragmented base of small vendors across 26 countries.
- Negotiate and consolidate. Vivek led the engagement and negotiated across regions to improve its economics.
- Track the commercial direction. By recollection, the engagement approached break-even after roughly 18 months; profitability is not claimed.
THE PROBLEM
What needed to change.
The engagement began at a negative margin, with a dispersed base of small suppliers across countries.
MY CONTRIBUTION
Where I came in.
I returned to Mphasis to lead the procurement engagement and negotiated with vendors across regions including Australia, China, Europe, the United States and Mexico.
The engagement worked toward vendor consolidation and better economics; exact savings and vendor reductions are not established here.
THE APPROACH
How it came together.
- Review the fragmented supplier base.
- Negotiate with vendors across countries.
- Work toward better engagement economics through consolidation and cost negotiation.
THE OUTCOME
What the work made possible.
By my recollection, the engagement was approaching break-even after roughly 18 months. It is not described as profitable.
Technical & implementation detail
This account focuses on commercial practice and personal contribution; a software implementation is not specified.
This account concerns supplier consolidation and negotiation economics. Spend under management, engagement margin and negotiated savings are different measures; precise amounts and the margin basis are withheld pending review.