Every year, companies spend billions on packaging for their products. According to a recent research report by Smithers, the value of the global packaging market was $917 billion in 2019. It will grow to $1.05 trillion by 2024.
Managing tail spend has been a major topic of discussion among sourcing professionals for at least the past two decades. In most companies, external spending has a Pareto-like distribution – the largest 20% of suppliers (by dollar volume) typically account for about 80% of the total external spend. Tail spend is generally defined as the 20% (or so) of the total external spend that is attributable to the smallest 80% of suppliers.