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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 [โ€ฆ]

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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 โ€œsolutionsโ€ emerged โ€” 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 Groupโ€™sย 2025 Tail Spend Management Studyย shows the result:ย 64% of procurement leaders

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