SaaS Procurement Checklist: Selecting The Right SaaS Procurement Providers

‍

When you're running a big organization and dealing with hundreds of SaaS applications, getting the best out of your vendors can sometimes be overwhelming. Have you ever felt lost in the vendor marketplace, trying to find the best deals without a roadmap?

It's tough without a structured approach. Here's the deal: every vendor offers something unique. Some focus on great discounts, others on top-notch service, and others do both.

So, before diving into negotiations, define what matters most. Then, hunt for vendors that match your criteria. With a clear framework, navigating SaaS procurement becomes less of a headache.

Having the right checklist is key to a smooth SaaS procurement process. It's like having a GPS for your journey to acquire the best solutions tailored to your needs. With a SaaS procurement checklist, you can navigate each step thoroughly.

This means making decisions backed by solid insights, minimizing risks, and maximizing the value of your investments. Read this comprehensive guide to explore the various aspects of the SaaS procurement checklist.

The guide will help you understand the essential factors to consider when choosing a SaaS procurement provider. From features and security to scalability, you will get the knowledge you need to make the best decision for your business.

‍

Why do you need a SaaS procurement checklist to select vendors?

A SaaS procurement checklist is crucial for vendor selection because it systematically compares and evaluates different SaaS solutions.

Here's why it matters:

Comprehensive evaluation: The checklist ensures a thorough assessment of vital aspects like security, compliance, scalability, and integration. This prevents overlooking critical factors that could affect procurement success.

Risk management: By methodically evaluating vendors against set criteria, the checklist helps spot potential risks early on. This empowers organizations to take informed steps to mitigate these risks effectively.

Alignment with needs: The checklist ensures that chosen SaaS solutions align with the organization's requirements and goals. It verifies that vendors can effectively address business challenges and meet objectives.

Fair comparison: Using a checklist allows for an unbiased comparison of vendors based on the same criteria. This promotes fair and transparent evaluation, preventing subjective judgments or biases from influencing decisions.

Efficient decision-making: A structured checklist offers a clear roadmap for vendor assessment. It saves time and effort by guiding stakeholders through evaluations step by step, leading to more efficient decision-making.

‍

SaaS procurement checklist: Top 10 factors to consider

As you set out to procure SaaS solutions, having a SaaS procurement checklist is key. Check out the following ten important factors that can help you make the right choices.

1. Pricing plans and total cost of ownership

When considering SaaS procurement, it's crucial to focus on the initial pricing and consider the total cost over time. Some vendors might offer tempting starting rates but can surprise you with extra fees for added features or scalability.

To avoid unexpected charges, evaluate the long-term financial impact, considering subscription renewals, upgrades, and potential add-on costs. This ensures that your chosen solution stays cost-effective throughout its lifecycle.

This table will help you understand the different pricing plans you can opt for.

‍

‍

Choose the right pricing plan that aligns with your business needs. Before signing a legally binding contract, talk to the vendor to understand their pricing model.

2. Integrations with SSO, HRIS, finance systems & other applications

Compatibility with existing systems is crucial for seamless integration and efficient workflow management. For instance, a SaaS solution that integrates smoothly with SSO systems, HRIS, and finance software streamlines data exchange and enhances overall operational efficiency, reducing the need for manual data entry and minimizing errors.

An ideal SaaS procurement platform should seamlessly integrate with SSO systems like Active Directory, G-Suite, and Okta for streamlined user authentication and authorization tracking, simplifying app discovery within your organization.

It should also be able to sync with finance management systems such as Freshbooks and Quickbooks to optimize costs, providing centralized spending data on vendors and SaaS apps through a dashboard.

Additionally, these platforms should be able to connect with HRIS platforms like Bamboo HR and Workday HCM to automate employee onboarding and offboarding, adjusting app access based on user status changes.

3. Implementation and support capabilities

Assessing a vendor's implementation process and ongoing support services is vital for a smooth transition and effective utilization of the SaaS solution.

A vendor with robust implementation support, including training resources and dedicated customer support channels, ensures minimal disruptions during deployment and offers timely assistance for troubleshooting issues or optimizing system performance post-implementation.

When you choose a reputable vendor, you also have access to dedicated support for implementation and ongoing assistance. This includes comprehensive training resources and dedicated customer support channels.

This helps you create a strong relationship with the vendor, ensuring a smooth transition and prompt assistance for any issues or performance optimizations that may arise.

4. Workflows to automate the procurement process

SaaS procurement involves more than software purchases—verifying requests, selecting vendors, negotiating contracts, and managing subscriptions. Look for SaaS solutions that offer customizable workflows to automate the procurement process, from requisition to payment.

Procurement workflows streamline tasks from intake to contract signing, ensuring visibility and task management. For example, features such as automated approval routing, purchase order generation, and invoice processing streamline workflows, reduce manual intervention, and improve process efficiency, leading to cost savings and faster turnaround times.

With an advanced solution, setting up procurement workflows becomes straightforward. You start by drafting an intake form, customizing a workflow to fit your needs, and connecting it to intake requests. Once configured, workflows activate automatically, notifying stakeholders and facilitating task completion efficiently.

5. Slackbot for procurement and customizable intake forms

Innovative features like a Slackbot for procurement requests and customizable intake forms enhance user experience and streamline communication within the organization.

For instance, employees can submit procurement requests directly through Slack, triggering automated workflows and notifications, while customizable intake forms allow organizations to capture specific procurement requirements efficiently.

You can effortlessly generate procurement requests directly from your Slack workspace using cutting-edge SaaS management platforms with procurement capabilities. No more juggling between platforms or filling out forms elsewhere. With the procurement bot, just type your request in Slack, and you're all set!

By enabling the Slack bot, you can

• View all your procurement requests and monitor their status right from Slack.
• Save time on procurement tasks with this smooth integration.
• Simplify your workflow and increase efficiency without leaving your beloved messaging app.

6. Assisted buyers for SaaS negotiations

Some SaaS procurement solutions offer assisted negotiation features. It empowers buyers with insights and recommendations to secure favorable vendor terms, optimizing outcomes while minimizing costs and risks.

Right now, the best practice is to have a platform offering procurement workflows and assisted buying features.

For negotiation support, consider leveraging an assisted buying service. Whether your procurement team lacks bandwidth or you want to access SaaS buying expertise, assisted buying ensures you purchase at the best prices.

Opting for this service means experienced professionals will closely collaborate with your organization. They'll analyze your needs, research the market, and provide valuable insights to secure optimal deals with vendors.

‍

‍

With a data-driven approach and a history of success stories, assisted buying empowers organizations to achieve cost savings and procurement efficiency effortlessly.

7. Visibility into tail spend and insights for cost optimization

Visibility into tail spend, comprising small, non-strategic purchases, is crucial for identifying cost-saving opportunities and optimizing procurement processes.

Advanced analytics and reporting features provide insights into spending patterns, supplier performance, and compliance, enabling organizations to identify areas for cost reduction, negotiate better terms with suppliers, and improve overall procurement efficiency.

Consider utilizing a SaaS management platform offering comprehensive procurement capabilities to achieve complete SaaS visibility in your organization. The tool will help identify decentralized purchases, renegotiate effectively, manage user activity, and reduce SaaS costs.

8. Vendor research and price benchmarking insights

Access to comprehensive vendor research and price benchmarking insights helps organizations make informed decisions and negotiate competitive pricing.

For example, platforms that provide data-driven insights on vendor capabilities, market trends, and pricing benchmarks empower procurement professionals to identify the best-fit vendors, negotiate favorable SaaS contracts, and maximize value from SaaS investments.

When you opt for CloudEagle for vendor research with the right price benchmarking insights, the tool simplifies vendor research post-procurement approval with its AI-powered recommendation engine. Instead of spending hours scouring various platforms for reviews, CloudEagle suggests vendors based on your specific pain points.

You can effortlessly compare prices and functionalities, read reviews, and connect with peers for validation—all within the CloudEagle platform. This streamlined approach allows you to focus solely on relevant features, facilitating the selection of the right vendor aligned with your needs.

CloudEagle offers a comprehensive price benchmarking solution through its SaaSMap and benchmarking repository. With access to extensive vendor data and accurate market prices, CloudEagle ensures competitive pricing and maximum value for your investment.

9. Vendor reputation and market presence

A reliable vendor provides long-term support and innovation. Before selecting one, you should evaluate their reputation and market position. Check customer feedback, awards, and market share.

Tools like G2, Capterra, or Gartner can assist in assessing the vendors. However, if you prefer not to invest much time sifting through numerous reviews, consider CloudEagle, which provides a comprehensive analysis of customer reviews in a single dashboard without the hassle.

Once you've selected your preferred SaaS vendor, if negotiating with them feels overwhelming, CloudEagle provides assisted buying services. We analyze requirements, improve negotiation strategies, and free your team to concentrate on critical tasks.

10. Financial performance and sustainability

Assessing a vendor's financial performance and sustainability is critical for mitigating vendor viability and continuity risks. Factors such as revenue growth, profitability, and financial stability provide insights into a vendor's ability to invest in product development, maintain service levels, and withstand market fluctuations.

Choosing financially secure vendors boosts confidence in long-term partnerships and lowers the chances of service interruptions or discontinuations.

When selecting a solution, you should consider whether the provider relies on venture capital funding for growth and development or if they are profitable independently. Given the current economic conditions, available venture funding may decrease for the foreseeable future.

While we might remain optimistic about the potential for growth in procuretech and supply chain tech, we also believe that companies overly reliant on VC funding for rapid scaling might not be the most reliable long-term partners.

You should prefer companies demonstrating steady, consistent growth and profitability rather than solely focusing on rapid expansion to secure additional funding. Factors such as employee count, funding amount, founding date, and growth rate must be considered when assessing potential partners.

Additionally, evaluating their valuation against the number of paying customers and their ability to sustain operations until securing significant contracts is crucial, especially considering the slower pace of enterprise sales cycles.

‍

Conclusion

A well-structured SaaS procurement checklist is indispensable for organizations. You can make informed decisions that align with your organization's specific needs and goals by evaluating pricing, integrations, support, automation, data security, scalability, vendor reputation, stability, and contract terms.

A robust procurement process goes beyond vendor selection; it involves strategically evaluating the long-term value and compatibility of the chosen solution. By utilizing a comprehensive SaaS agreement checklist, organizations can empower themselves to mitigate risks, optimize resource allocation, and maximize returns on SaaS investments.

Ultimately, SaaS procurement aims to enhance operational efficiency, drive innovation, and foster growth in today's dynamic digital landscape. By carefully assessing these factors, organizations position themselves for success both now and in the future.

So, if you lack the framework yet need to streamline procurement, schedule a demo with CloudEagle to discover how to transform your organization’s procurement processes.

‍