Now as you have gathered all the data needed, it is time to run some analysis and understand cost drivers by looking at licenses, usage, etc. The task of Procurement (or another department responsible for contracts) at this step is to collect the most relevant views and provide key insights and data to the business owners.
Please note that analyzing and optimizing is not a one-time effort. In this article, we are showing some best practices that you should adjust to your organization's needs and establish as regular habits.
By utilizing Leanix SMP's Contracts views, such as service categorization, or filtering capabilities, you can quickly gain valuable insights into your SaaS contracts. In fact, the Contracts Timeline, Contracts List, and Committed Spend Report sections provide useful information that can be easily sorted and filtered to reveal important trends and patterns. Please consider the following use cases that highlight the effectiveness of Leanix SMP's analysis capabilities:
- You can get a clear overview (and action plan) by prioritising contracts based on their importance according to Value/Cost
- You can keep a close watch on the renewal date by arranging the services by the closest Next renewal date in the Contracts list.
- You can also learn about the closest renewal date by referring to the Contracts timeline as well as in the Committed spend report.
- View Renewal Status
This way, you can easily manage and prioritize contracts based on their significance to the organization.
Information on Renewal Status
Renewal Status is a Custom field. You can find more information on how to create Custom field here.
To make contract management more efficient, it's best to focus on long-term contracts that need special attention as they can only be renegotiated once per year or every few years. Monthly renewable subscriptions, on the other hand, can be handled each month and don't require as much focus.
- By identifying multiple contracts from the same vendor, you can simplify and aggregate the orders into a single master contract. This enables your organization to negotiate better discounts with increased leverage. This will also help streamline the procurement process and gain better control over vendor relationships, resulting in significant cost savings.
- You can add contract value based on the service type and Identify how much your company is investing per service type to drive contract rationalization.
- If you select a particular service, you can see all the updates in its contracts by clicking on Contracts from the left-hand side menu. With this view, you can quickly gain a comprehensive understanding of the service and make informed decisions.
Updated 4 months ago