NEPO x Nomia Tail Spend.JPG — Pictured, from left to right, are Jake Pattison, procurement coordinator for corporate services and ICT at NEPO; Ed Jenkins, account director at Nomia; Steven Sinclair, procurement and commercial director at NEPO; Kate Buitendach, head of commercial contracts at Nomia; Gavin Duffy, chief operating officer at Nomia; and Nick McDonald, procurement lead for corporate services and ICT at NEPO

NEPO tackles tail spend with new service

A public sector procurement service is set to transform how low-value spending is managed.

North East Procurement Organisation (NEPO) has launched its new Tail Spend Management Service to help public sector organisations tackle the challenge of managing high-volume, low-value purchases more efficiently.

After extensive consultation with stakeholders and the wider market, NEPO appointed Nomia as its sole supplier for the fully managed solution.

Bosses say the service aims to reduce non-compliance and administrative burden while driving better commercial value and oversight of what is often overlooked ‘tail spend.’

They add that with pressure mounting on public bodies to maximise budgets, the new partnership equips procurement and finance teams with streamlined processes and improved control.

Nick McDonald, corporate services and ICT lead at NEPO, said: “We are delighted to partner with Nomia in the delivery of our new Tail Spend Management Services solution.

“In a time where reduced resources can have a real impact on public sector procurement teams, this solution will support our members in a challenging area of spend.

“This will allow greater visibility, control, and value from their non-strategic, low-value expenditure by harnessing procurement expertise, innovation and technology.”

Stephen Petheram, chief commercial officer at Nomia, added: “This partnership represents a significant step forward for public sector procurement.

“Tail spend has traditionally been overlooked due to the volume of vendors, its complexity and its low strategic visibility – yet it often accounts for up to 20 per cent of an organisation’s total spend.

“By managing it through our AI-enabled platform and services, we not only typically deliver 5-15 per cent cost savings, but also improve compliance, unlock innovation, and provide a better experience for both buyers and suppliers.”

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