When managing your procurement initiatives, you can leverage Sastrify's support and engage our IT buyers in your process through the 'Involve Sastrify' feature. Our procurement team provides the following services that fall within our scope of service:

  • Custom Benchmarking & Contract Review
  • Negotiation & Renewal Support


This article will focus on Custom Benchmarking & Contract Review, providing comprehensive details on what this service encompasses and everything you need to know about it.

IN THIS ARTICLE:

Service Details


Purpose

The purpose of Custom Benchmarking & Contract Review is to identify cost savings opportunities or further optimization potential, not only related to costs but also concerning other commercial contract conditions.


Use Cases

This service includes the review of existing subscription contracts, as well as quotes for subscription renewals and new tool purchases. 


It's essential to provide the latest contracts or quotes when raising an 'Involve Sastrify' support request. This ensures that our team has the most up-to-date information to provide you with accurate and effective support.



During a commercial contract review, we meticulously examine the following elements or aspects:

  • Unit prices
  • License type / specifications
  • Volumes and commitment levels
  • Payment terms
  • Details of service agreements
  • Renewal conditions (e.g., auto-renewals, price uplifts, etc.)
  • Recurring and one-time discounts based on various conditions (e.g., extra discounts for longer commitment, upfront payments, or higher commitment levels)


Sastrify's Approach

Sastrify tailors its approach to a set of contract requirements, whether they pertain to current or forecasted volumes and plans. The service delivers personalized advice and recommendations, including cost and commercial optimization levers. Depending on availability (see disclaimer), Sastrify also provides an appropriate range of price benchmarks.


Requirements

Customers are required to provide Sastrify with the full context of their request. This could entail providing an existing contract, a quote, or a comprehensive set of contract requirements that include at least the desired product plan, volumes for main cost drivers, and contract commitment lengths.


Disclaimer: 
Sastrify offers an extensive array of price benchmarks for SaaS, IaaS, and PaaS tools, utilizing a dataset reflecting expenditures exceeding €2 billion, encompassing thousands of contracts and negotiations led by Sastrify. While this doesn't assure that every SaaS tool can be benchmarked with a substantial amount of data, our benchmark service is subject to availability. In cases where limited or no data is accessible, the benchmark and review are conducted with guidance on generic improvement strategies.

What you can expect from a custom benchmark request by Sastrify


At Sastrify, we provide a thorough evaluation of your current contract or any new quotes you've received from a SaaS vendor. Our analysis encompasses:

  • Detailed breakdown of unit prices per cost driver
  • Potential recurring and one-time discounts
  • Additional discounts for factors like product bundles and multi-year commitments
  • Considerations for reference and logo provisions


Additionally, we explore:

  • Options for contract upgrades or downgrades
  • Potential extra/free usage or service allowances
  • Possibilities for cost avoidance, including strategies for planned price increases


Moreover, subject to available experience and your needs, you can expect:

  • Valuable tips and advice on effective price negotiation strategies
  • Insights into successful negotiation tactics
  • Alternative solutions employed by Sastrify customers to enhance negotiation leverage and pursue better options.

Not considered within the scope of service


  • Obtaining a custom quotation from vendors to benchmark a tool.
  • Review of contracts related to legal or IT security matters.
  • Review of non-SaaS/cloud-based products such as IT hardware or telecommunications.
  • Finding and evaluating alternative tools based on a list of functional and/or technical requirements. (Sastrify limits its service of providing a shortlist of tool alternatives solely and objectively based on its database and the frequency of tools being used by other Sastrify customers.)