How a global hospitality company achieved $47M in actual savings with ProcureAbility
A global hospitality company faced a major procurement challenge just as it prepared to implement a cloud-based P2P system. At the same time, with plans to enforce a strict “no PO, no pay” policy, the business struggled with limited visibility and control over $295M in tail spend, spanning 48,000 items and more than 2,000 suppliers. Moreover, without standardized supplier contracts or procurement governance, the organization risked uncontrolled spending, increased 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
By applying ProcureAbility’s strategic tail spend management approach, the company not only enhanced procurement visibility but also strengthened supplier relationships. In addition, ProcureAbility implemented a “touchless” P2P process, which minimized manual intervention and, in turn, reduced costs, complexity, and supplier risk.
Explore the full case study below to see how strategic tail spend optimization can drive significant cost savings and boost overall procurement efficiency.
