Tropic

How do you determine who gets a license…and who doesn’t? Too often companies make the mistake of cutting license count based on little data and collaboration. Here’s a better way Michael Shields approached this situation for a past renewal, where usage had ballooned by over 120% 👇 1️⃣ He partnered with IT and the supplier to collect data, looking at how often the company used XYZ tool. 2️⃣ Together, they also explored alternative solutions already available in their existing tech stack. 3️⃣ They defined an acceptable ROI of using XYZ tool. 4️⃣ They separated users into 2 groups: Those who achieved the acceptable ROI and those who didn’t. 5️⃣ They sent emails to these 2 groups. For those who met the criteria for XYZ tool, they told them they could keep their license but still offered the opportunity to voluntarily it up give up (by using an alternative). The email included a video on how to use the alternatives. For those in the other camp, they told them they would be removing their license but allowed them the opportunity to appeal by providing additional data and context they may not have considered. The result? Licenses (and potential costs) were cut in half. 💡 In the process, Michael gave up his license but found that one of the alternative solutions actually met his needs better. Without this simple exercise, he had no idea the other solution was even an option. #procurement #spendmanagement #saas

SaaS buying trends are changing. (And here’s why it matters if you are in Sales, Customer Success, Finance, etc). 2021: Multi-year deal (in exchange for a discount).  Ramping commit Pre-buying licenses based on growth projections Aggressive usage for things like API calls 2024: Contract flexibility (including short terms) Conservative commitments (can always restructure later!) Higher ROI requirements for license utilization Optimization of usage based agreements These buying trends will not only impact ACV and TCV but NDR and CRPO as well. As a buyer, I see many companies haven't adapted and are pushing what they did in 2021. But it's 2024... So the question is, what are you doing about it?

Did you know that companies invest 10.75% of their total software budget toward operations tools? In fact, Tropic customers have spent over $150 million on this #SaaS category, making it very important to avoid over-provisioning and right-size your #operations technology where necessary. Tropic #procurement expert Tyler Jackson shares his trends and actionable insights to help you optimize your operations tech stack in 2024: https://lnkd.in/gwvze6ee

“The best way to get visibility into our spend was to put in processes, requests, and approvals in Tropic," says Alex Paquette, COO at IRONSCALES. Eliminating overspend, gaining visibility, and getting ahead of renewals were the challenges the company faced. But with Tropic's platform and data, IRONSCALES launched a strong purchasing process with full visibility + control over all spend…even saving $138K. That's the beauty of maximum leverage.  Learn more below 👇 #SaaS #Procurement

SaaS sprawl is real – and it is top of mind for CFOs. In a survey of finance executives in The Circle, 74% of respondents said they have or will consolidate their systems. Here are 4 ways how: #️⃣ Use a key ROI “headcount” metric to streamline the buying process 💬 Position software consolidations against other controllable business costs (notably jobs) 👩🏾💻 Hire a dedicated business analyst  📄 Protect against overpriced contracts To dig into the details, read the Takeaways with expert insights from Alyssa Filter, CFO, Tropic, and Caitlin Steel, former CFO and VP of Product, Leapfin: https://lnkd.in/e8ivbm2K #cfo #softwarespend #saassprawl #budget #softwarestack #growthcompanies

Did you know? Over 80% of executives believe their companies have data silos…and nearly all of them know it harms efficiency and integrity. Unified reporting can break these #data silos down by providing: ➕ Real-time insights ➕ Better forecasting ➕ Smarter decisions ➕ Seamless collaboration ➕ A single source of truth Grab some insight from our latest blog to boost financial efficiency and decision-making 👇 #SaaS #Finance

Did you know that security software is the 2nd #SaaS category businesses invest the most in, making up 11.75% of the total software budget? If you play your cards right, purchasing security software can become a buyer’s market — if you can use competitive leverage, understand pricing models, and consolidate where possible. Tropic #procurement expert Ashley Blackwell shares her trends and actionable insights to help you optimize your security tech stack in 2024: https://lnkd.in/e_fgA8vU

For Christeene Alcosiba, #AAPI month is all about reflection, celebration, and confrontation. 💛 As a Senior Product Manager on our Accounting Systems Team, Christeene oversees the product development process, works alongside many stakeholders, and ensures our customers’ needs are met. Get to know her in this latest #employeespotlight 👉 https://lnkd.in/gAEb7Tv9

Struggling to optimize your #SaaS costs? Cost optimization is imperative for efficiency and profitability. There are 10 levers you can pull to master cost optimization, including: ✅ Driving compliance with intuitive UIs ✅ Helping budget owners think like CFOs ✅ Understanding utilization ✅ And 7 more game-changing strategies Learn about all 10 levers and how to put them into practice to cut costs, streamline your processes, and maximize time savings: https://lnkd.in/eZV4skCG

A KPMG US study found that “Implementing [AI] technology can lead to 80% time savings in certain procurement use cases and boost efficiency.” #AI will transform strategic sourcing, promising more efficiency in evaluating suppliers, mitigating risk, and driving compliance. Planning to take advantage of this new frontier? Discover AI’s opportunities and challenges (plus how to navigate them) for #procurement sourcing in our latest blog: https://lnkd.in/g6PgMy_x