Tackling tail-spend to unlock savings

Globe on wood surface with sunset behind


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.

Man points at strategy board with many post-it notes


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


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


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

Related Case Studies

McDonald’s | Tail-Spend

Tackling tail-spend to unlock savings
  • McDonald’s
+ 3 3 more

McDonald’s | Thoughtful Design

Delivering culturally relevant design to bring families together
  • McDonald’s
+ 4 4 more

McDonald’s | Smart Sourcing

Cutting operational supply costs through smart sourcing
  • McDonald’s
+ 3 3 more