How a global hospitality company achieved $47M in actual savings with ProcureAbility
A global hospitality company faced a major procurement challenge ahead of a cloud-based P2P system implementation. With plans to enforce a strict “no PO, no pay” policy, the business lacked visibility and control over $295M in tail spend, spread across 48,000 items and 2,000+ suppliers. Without standardized supplier contracts or procurement governance, the organization risked uncontrolled spending, supplier risk, and missed savings opportunities.
ProcureAbility’s tail spend management strategy
Data cleansing & spend volatility
Organized and structured 650,000+ ERP data points for actionable insights
Supplier negotiations & compliance:
Developed supplier outreach strategies, secured 1-year pricing agreements, and aligned vendors with P2P requirements
Contract standardization:
Created a contract library, streamlined execution, and optimized supplier governance
Client impact & business results
$47M in actual savings
Exceeding the original $44M target
$295M in increased spend under management:
Improving procurement control
2,135 new supplier contracts
Ensuring compliance and cost efficiency
With ProcureAbility’s strategic tail spend management approach, the company enhanced procurement visibility and optimized supplier relationships. ProcureAbility also enabled a “touchless” P2P process which reduced manual intervention, thereby reducing costs, complexity, and supplier risk. Access the full case study below to see how strategic tail spend optimization can drive cost savings and procurement efficiency.
