Hackett Group 2025 Tail Spend Management Study Report | Zycus

Only 4% of companies actively manage most of their tail spend. Are you one of them? The Hackett Group’s latest research reveals why 64% of procurement leaders are dissatisfied with their current tail spend approach — and how forward-looking organizations are turning this hidden 20% of spend into measurable value. Why Tail Spend Demands Your Attention in 2025

• Tail spend represents 20% of enterprise spend across 80% of suppliers
• Current approaches (marketplaces, P-cards, BPOs) have failed to close the gap
• Boards are now asking tough questions on compliance, ESG, and ROI in tail categories
• AI-driven orchestration is changing what’s possible

👉 Download the full Hackett report to understand how your peers are tackling the challenge. What You’ll Learn in This Report 📊 Benchmark Data

• How much of tail spend is currently managed (vs unmanaged)
• Savings captured today (7–10%) vs potential (16–20%)

⚠️ Top Challenges

• Why traditional approaches like marketplaces, P-cards, and BPOs are falling short
• The most common governance, compliance, and supplier participation barriers

🤖 The Future of Tail Spend

• How procurement leaders view AI-powered negotiation agents
• Where Agentic AI and guided intake can unlock savings at scale

🌍 Global Insights

• Regional differences in North America, Europe, APAC, and LATAM
• Which categories (office supplies, facilities, marketing) bleed the most value

Who Should Read This?

• Chief Procurement Officers (CPOs): Position tail spend as a board-level priority
• Procurement Leaders: Benchmark your performance against peers
• Finance Leaders & CFOs: Understand the EBITDA impact of unmanaged tail spend
• Category Managers: Learn which categories to prioritize first

Why This Report Matters Tail spend is no longer just a tactical headache — it’s a strategic lever for cost, compliance, and risk management. With insights from Hackett and implementation proof points from Zycus, this study equips you to:

• Identify hidden value leaks
• Improve compliance and ESG reporting
• Drive supplier adoption in AI-led negotiations
• Capture savings that directly impact your bottom line