Why Managing Your SaaS Application Assets is So Important
The Procurement role has evolved over the past few years with the introduction of Software as a Service (SaaS). Procurement professionals no longer just look at contracting goods and services for their organizations since, nowadays, much more is considered. The management of technology stacks, SLA’s, license consumption, license models, pay per user or pay for usage are common daily functions. What occurs in Procurement is essential to the company’s overall financial well-being and ultimate success.
The responsibilities of modern procurement organizations are intrinsic to company profitability and productivity. Organizational revenue and liquidity depend on how well the procurement department functions. This is all dependent upon how efficient contracts are being tracked, how organized and how on time renewals are being generated, as well as, how seamlessly license under-utilization is being evaluated.
SaaS License Sprawl is an ongoing Issue for Companies
In today’s workplace, cloud applications are so easy to purchase that department heads oftentimes circumvent their current purchasing process and lose track of utilization. This is a growing concern for many organizations since SaaS application use is proliferating throughout companies without a method to track your spend and usage on these assets.
Save Money on Renewals by knowing where SaaS Licensing is being Utilized
Let’s take SaaS renewal management for example. It is up to the procurement team to oversee which SaaS applications are providing the most benefit to their company. SaaS spend can be reduced when procurement professionals do not automatically renew applications that they are not seeing any ROI on.
Also, it is imperative that license fees are being tracked and important renewals dates are not being overlooked. If software licensing are carelessly not being renewed, you end up with lapsed contracts. The result of this could be catastrophic to any organization. Critical management tools should always be in place so there is visibility into the renewal process, and it can be effectively controlled from beginning to end.
Gain an Upper Hand when Working with SaaS Vendors
SaaS Contract Management is another critical component to a Procurement Professional’s daily responsibilities. They must be proficient in negotiating the best deal for their company, without skimping on quality and ethics, while meeting industry regulations and company standards. If the right software is chosen, it will not only be easy to understand and use but will also assist the department in meeting compliance issues and deadlines.
Be Prepared at any Budget Meeting
Procurement Professionals must also manage the ongoing budget and forecasting within a company. This is no small task. They must be comfortable in devising strategies to analyze and compare financial reports and pricing proposals. They should always do a comparison from several sources before negotiating terms and prices to obtain the best deal possible.
Supply chain management is a continuous project, updated with each contract and shipment to ensure benchmarks are hit and goods and services continue to meet required standards. It is important that all the purchases that are made, make the most sense, given the timetables that are put in front of them. Again, surrounding themselves with the right management tools is so imperative to get this right.
Know where your Sensitive SaaS Data Is
Of all the roles and responsibilities of a Procurement Professional, none is more important than the management of SaaS Security and Risk. Employees are constantly dealing with sensitive, financial and personal information, such as bank accounts, credit cards, social security numbers and phone numbers, they must take their cyber-security license security responsibilities seriously.
Given the fact that most all transactions they do are done in the Cloud, they are open to extreme vulnerabilities due to ongoing online threats. This becomes even more serious when you add the numerous bids, contracts and other confidential documents they deal with. Should any of this information get into the wrong hands, the losses that a company could face could be devastating.
Understand Where the Issues are Before they Happen
Real-time reporting and automating on SaaS licensing gives the entire organization one version of the truth. Having one version of the truth opens up avenues for department collaboration and an understanding of the total SaaS corporate expense and statistics on usage, utilization, and adoption of these SaaS applications. In turn, this reduces license waste in order to maximize on the investment of your SaaS Applications.
Organizations, no matter how big or small, need to truly understand the value of professional procurement departments and implement the necessary technology to help them succeed. Those that follow this practice are known to report higher profits and incur lower overall costs. These are the companies that are more capable of building strong, lasting relationships with software vendors that, in turn, lead to more favorable contract terms. Having the right tools in place enables procurement professionals to accomplish what they need to in fewer man-hours than ever before.
SaaSLicense is a Cloud Licensing Management platform that can address these very issues procurement and purchasing face daily. Check out more about SaaSLicense and schedule an interactive demo with one of our on-boarding Engineers. You will find that our software is forward thinking and will address your SaaS license management needs.