5 Tips on How to Improve Your SaaS Vendor Management Process

SaaS (Software as a Service) has become an essential part of modern businesses, providing them with the flexibility to access a range of software applications without the need for on-premise installation. However, with the increasing popularity of SaaS, managing multiple vendors can become a challenging process. To make things more manageable, here are five tips on how to improve your SaaS vendor management process and ensure that your organization is getting the most out of its SaaS investments.

1. Perform a SaaS Vendor Audit

The first step in improving your SaaS vendor management process is to perform a vendor audit. A vendor audit involves evaluating your current vendor relationships, the software applications they provide, and the associated costs. This process can help you understand the value of your SaaS investments, identify any redundant or unnecessary software applications, and ensure that you are only paying for what you need.

To perform a vendor audit, start by creating a list of all the SaaS vendors your organization uses. Then, evaluate each vendor against a set of criteria, such as the cost of the software, the level of customer support provided, and the ease of use of the software. You can also evaluate the software applications themselves by looking at their functionality, features, and integration capabilities.

2. Develop a SaaS Vendor Management Strategy

Once you have performed a vendor audit, the next step is to develop a SaaS vendor management strategy. A vendor management strategy involves defining the policies and procedures for managing your SaaS vendors, including how you will evaluate vendors, how you will manage vendor relationships, and how you will measure vendor performance.

To create a SaaS vendor management plan, begin by outlining your goals and objectives. This may include consolidating vendors to cut costs or enhancing vendor performance by setting clear standards and metrics. Once your objectives are clear, identify the essential stakeholders in vendor management, such as IT, finance, and procurement teams. Lastly, establish policies and procedures for managing vendors, which should include evaluating vendors, managing vendor relationships, and measuring vendor performance.

3. Establish Communication Channels with Vendors

Effective communication is essential for successful vendor management. It is essential to establish clear communication channels with your SaaS vendors to ensure that you can quickly resolve any issues that arise and receive timely updates on software upgrades and new features.

When communicating with your vendors, begin by identifying the main contacts at each vendor, like an account manager or customer support representative. Then, agree on the most suitable way to communicate, such as email, phone, or a vendor portal. Lastly, determine how often you should check-in, like on a weekly or monthly basis, to stay informed about vendor activities. This will help establish effective communication channels with your vendors.

4. Monitor Vendor Performance

Monitoring vendor performance is essential for ensuring that you are getting the most out of your SaaS investments. Monitoring involves tracking key metrics, such as software uptime, response time to support requests, and adherence to service-level agreements (SLAs).

To monitor the performance of your vendors effectively, start by selecting the key metrics that will be used to track their progress. Next, establish a process for gathering and analyzing data, which may include utilizing vendor-specific management software. Finally, utilize the data you collect to identify areas where your vendors can improve, and collaborate with them to address any issues that arise.

5. Continuously Evaluate and Optimize Your Vendor Relationships

The final tip for improving your SaaS vendor management process is to continuously evaluate and optimize your vendor relationships. This involves regularly reviewing your vendor portfolio, assessing vendor performance, and identifying opportunities for consolidation or new partnerships.

If you want to improve your vendor relationships, it's important to set up a regular review process. You can do this by conducting quarterly or bi-annual reviews. During these reviews, you can assess your vendor portfolio to ensure it aligns with your goals and objectives, evaluate vendor performance using key metrics, and identify opportunities for consolidation or new partnerships.

Conclusion

Effective SaaS vendor management is essential for ensuring that your organization is getting the most out of its SaaS investments. By performing a vendor audit, developing a vendor management strategy, establishing communication channels with vendors, monitoring vendor performance, and continuously evaluating and optimizing your vendor relationships, you can improve your SaaS vendor management process and drive greater value for your organization.

Do you need help with SaaS vendor management? You can work with us at Varisource. We make it easier for you to access market data and manage your services and resources. Get in touch with us to learn more about what we can do for you.