Tackling tail-spend to unlock savings

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Opportunity

Tail-spend is one of the biggest sources of incremental savings available. It requires leveraging spend volumes to unlock savings but also demands process discipline to define a structured approach and accelerate decision-making, which most companies don’t have the time or resources to do. tms identified an opportunity to help McDonald’s save big.

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Approach

A centralized tail-spend program reviewing non-core categories gives markets access to savings from leveraged spend on products, such as condiments, across markets that aren’t currently benefiting from buying together. tms managed the tail-spend across non-core food items in various markets, using analytical tools and proven methodologies to deliver savings fast. The funding for our services was derived from savings generated from Year 1 based on agreed estimated annual volume, which meant there was no risk to McDonald’s.

Red, yellow, and white condiment squeeze bottles

Outcome

tms’s approach to tail-spend management drove real value through savings and efficiencies — we uncovered additional opportunities​ to save even more.

Open laptop with three small boxes on top of it, each with a small shopping cart printed on the side

Results

8.7 Million
dollars in total savings
13 Percent
total savings delivered through streamlining process
40 Million
dollars in additional opportunity identified

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