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September 16, 2025

AI in Tail Spend

From Chaos to Control: How Agentic AI Is Rewriting the Rules of Tail Spend

Procurement leaders have long accepted tail spend as messy, fragmented, and unmanageable. Thousands of small-value purchases spread across hundreds of suppliers generate high transaction volumes, compliance risks, and value leakage. Despite attempts with marketplaces, P-cards, and outsourcing desks, most organizations remain stuck in the same cycle: high effort, low control, and minimal savings. The Hackett […]

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AI in Tail Spend

Why Marketplaces, P-Cards, and BPOs Failed to Fix Tail Spend

Procurement leaders have chased tail spend efficiency for over two decades. Along the way, multiple “solutions” emerged — corporate marketplaces, purchasing cards (P-cards), business process outsourcing (BPOs), and tactical buying desks. On paper, they promised convenience and savings. In practice, they fell short. The Hackett Group’s 2025 Tail Spend Management Study shows the result: 64% of procurement leaders

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