How SaaS is Changing Procurement | Binadox - SaaS management

How SaaS is Changing Procurement

Stanislaw Lee

The role of procurement has changed drastically in the last decade. As new technologies and leading practices emerge, companies have completely different approach to adapt and deploy new software. These changes mostly caused by the introduction of cloud technology and explosion of SaaS applications across organizations.

Formerly, procurement teams used to spend a lot of time as well as efforts on reviewing new software. They often required weeks or months of evaluation before presenting their work and recommendations to the executive teams and managers.

Nowadays, more companies are increasingly moving towards SaaS applications. That’s why procurement teams have shifted their focus and priorities. As employees grow their reliance on SaaS apps and dependence on them, procurement departments also turn advantages of SaaS model into their favor. Here are few major examples of how SaaS is changing procurement:

 

Testing Before Purchasing

In the on premises era, procurement teams would spend significant amount of time on deploying new technology. It took days or even weeks of waiting, watching demos, or even visiting developers headquarter before they could start doing their job. Therefore, a procurement department would discover if new technology meets company’s requirements and standards, but only after obtaining and installing new software. They didn’t have any free trial options.

In today’s SaaS era, though, almost every vendor offers a free trial before a purchase. Procurement teams are now able to easily test out new software. This way, they can ensure the quality and usability of an application.

 

Analytics and Expertise

In today’s SaaS and cloud-based world, there are many aspects to consider when evaluating new technology. Each department and each employee have their own unique requirements for each application. Therefore, when a procurement team purchases the new technology, they should acknowledge all requirements and function for each department. Sometimes, even for each employee.

That’s why procurement needs to deliver expertise and analytics, so that each software purchase would benefit their company. To facilitate this task, procurement teams should consider using a SaaS management platform that tracks usage and spend of each department and each user. Beyond that, this platform delivers insights when individual departments purchase new technology on themselves.

 

Increased Influence and IT Collaboration

In the past, IT sourcing has been owned by IT teams. Today, procurement is becoming more important for deployment and implementing new technology. As a result, the influence of procurement is growing across organizations.

With SaaS, procurement teams are regularly collaborating with IT to accomplish seamless and swift integration and no long-term commitment if new software isn’t adopted. Procurement also helps IT when it comes to cost saving and application usage.

However, without proper insights into how SaaS applications are being used and how they are performing, procurement can’t do much. In the SaaS era, procurement requires usage and cost data of each individual department. Luckily, Binadox provides a solution to facilitate and extend procurement in your organization.

 

How Binadox Helps Procurement

With SaaS, procurement should remain and grow as a strategic asset to companies as well as to IT teams. It’s vital that procurement become less involved in purchasing software and making indiscriminate decisions. Procurement should focus in creating value for the entire organization.

Binadox helps procurement teams to associate themselves with quantifying savings, such as reducing unused licenses, consolidating platforms, and ensuring all systems are interconnected, thereby creating extensive value for IT and for the company as a whole.

In case you’re interested how else Binadox can support your business and extend procurement, sign up your free Binadox account!