The top 5 SaaS-vendor criteria every IT procurement manager must know

As the Consumer Packaged Goods (CPG) industry is increasingly digitised, IT procurement professionals are faced with the challenge of selecting the right vendor and software for their organisation. However, the process of selecting a vendor and software can be complex and time-consuming, and there are many elements that IT procurement professionals should be aware of to make the best decision for their organisation.

Here are 5 areas IT procurement professionals should focus on when selecting a vendor and software in the CPG industry:

True-SaaS

How to identify true-SaaS versus PaaS.
The future for business applications is Software as a Service, and many of the world’s leading organisations are migrating to SaaS offerings. Yet, there is a difference between SaaS solutions. As shown in the table below, many vendors disguise their true offering by claiming to be SaaS vendor. Yet, they are PaaS or IaaS vendors that claim to be SaaS.

How to identify True-SaaS:

1. Ask the vendor if their offering was built in the cloud or if they have previously offered on-premises solutions. -> Most vendors that migrate from on-premise to cloud face significant challenges as the architecture for cloud solutions is different.
2. Ask if there are additional costs associated with third-party tools that need to be in place to use the SaaS solution. -> True SaaS has no need for additional tools to operate.
3. Ask if upgrades and updates are free of charge -> True-SaaS includes updates and upgrades at no additional charge.
4. Ask the vendor if your organisation must take care of hosting the solution -> Hosting must be included in the offering to be considered true SaaS.
5. Ask the vendor if the tool is single code or if there are multiple versions -> True SaaS is single code. That means all customers are on the same solution.
6. Ask the vendor if they customise or configure. Customisation of code can’t be SaaS. If they are promoting customisation, this means there are different versions of the software and will require additional support.
   

User-based pricing vs. unlimited users

Don’t limit your growth with limited seats.

Many SaaS offerings offer user-based pricing instead of one price for unlimited seats. Although user-based pricing may seem the best option, it actually constrains the utilisation of the platform. A true SaaS offering should offer scalability for your organisation as your business needs change. This means dynamically scaling up and down the user base according to your business needs.  Make sure the provider you choose will not limit your ability to grow with the platform.

Reference calls

It pays to speak with actual users.

When evaluating software vendors, reference calls are the best method to get industry peer feedback on their experience with the vendor. To have the most reliable and unbiased opinion from an industry peer, you can:

• Check if they are using the same product. Quite often the best customer is put forward, but they might be on a legacy on-premise solution and not on the latest cloud version.
• Check if the vendor immediately provides contact details or if they respond with: “Reference calls are given at request”. Get suspicious if the contact details are not immediately provided.
• Check if the vendor is on the reference call or if you are taking the call on your own. The vendor is taking part is often a bad sign.
• Ask the Vendor for the customer list and request the companies you would like to speak to. If they are not willing to do this, that should be of concern.
  
  

Scalability

Look for a product that can grow with your needs.

As the CPG industry is constantly evolving, it is important to select a vendor and software system that can scale with the organisation’s growth. Scalability comes in the form of:

• Data volume handling: A SaaS solution in CPG only works if it’s able to handle large volumes of data. Ask for performance benchmarks or request this from reference clients.
• Support: Is the vendor setup to deliver support in your time zone? The beauty of SaaS solutions is they can operate globally but the supporting organisation needs to be setup to support your local time zones.
• Training & Certification: Does the vendor have a structured training program? Employee rotation is high in FMCG, if new employees can be trained in a structured way, business continuity is guaranteed.
  
  

Total cost of ownership

You must consider the total cost of ownership.

 IT procurement professionals should consider the total cost of ownership when selecting a vendor and software, including the cost of implementation, maintenance, and upgrades. Many software vendors have hidden costs, they offer an initial “low” offer because the revenue is made in the tail of the contract.

Always check for:

1. Hosting costs
2. Upgrade/update costs
3. Support costs (SLA and non-SLA)

(Re)configuration costs

In conclusion, IT procurement professionals in the CPG industry must consider many factors when selecting a vendor and software, including scalability, total cost of ownership, support, innovation, security, flexibility, and integration. It is crucial to avoid these pitfalls in order to make the best decision for the organisation.

Forecasting demand for CPG is now 200% faster with SageMaker

In June 2022, Visualfabriq concluded the migration from Amazon Simple Storage Service (Amazon S3) to Amazon SageMaker ensuring a more efficient solution. The implementation of SageMaker aligns with Visualfabriq’s goals of creating a scalable and consistent infrastructure for its Machine Learning models. 

Visualfabriq offers a unique end-to-end SaaS platform with applied Artificial Intelligence capabilities, that drive Revenue Growth Management to customers in the consumer-packaged goods (CPG) industry. The company supports top leading CPG companies worldwide with its machine learning (ML) and AI predictions. 

Visualfabriq constantly seeks innovation and working with partners such as Amazon reinforces the effort to be at the front of the technology curve and consistently deliver high value to our customers. The partnership with Amazon SageMaker brings countless benefits to the customers, the biggest impact of the migration is the significant improvement in the performance and efficiency of Visualfabriq solutions. The Demand Forecast module, the all-in-one solution for accurately predicting baselines and future demand management, improved the response time by 200 percent.  

SageMaker implementation allows Visualfabriq to standardize its artificial intelligence deployment to clients faster and in a scalable way to endow future growth. It provides the most efficient automation for model implementation and usage, which were some of the main factors that drove the decision to migrate from Amazon S3 to Sagemaker, as was the desire to reduce manual development work. 

Amazon has published the full business case of the partnership with Visualfabriq on its website, which can be accessed at the link below. 

https://aws.amazon.com/solutions/case-studies/visualfabriq-case-study/

Visualfabriq Appoints Koen Matthijs as CEO

Software Industry Veteran to focus on growth, customer insight and market leadership
Amsterdam, Netherlands – November 15, 2022 – Visualfabriq, a leader in revenue growth management software solutions for the consumer packaged goods (CPG) industry, today announced the appointment of Koen Matthijs as Chief Executive Officer. Matthijs will also join Visualfabriq’s board of directors.

Jaco Brussé, Visualfabriq’s co-founder and current CEO, will continue to contribute to the company’s strategy and vision in his role as a strategic advisor and as a member of the company’s board of directors.

Joining Visualfabriq, Matthijs brings an established track record of building software and IT service delivery companies that deliver strong value through innovation, thought leadership and operational excellence to help customers and their communities achieve desired outcomes. Most recently, Koen was CEO of Spacewell, a leader in building management software which was acquired by the Nemetschek Group in 2018 to build Spacewell towards a global smart building software leader. After the acquisition, Koen stayed at Nemetschek as Chief Division Officer, of the Operate & Manage Division, where he grew the SaaS business via organic growth and multiple acquisitions.

Prior to Spacewell, Koen successfully founded, grew and exited a consultancy firm focused on SAP CRM solutions; today, the business is part of Tata Consultancy Services (TCS).

“I am very pleased that Koen Matthijs joins us as CEO of Visualfabriq. He is an excellent leader, a seasoned professional with the ideal skill set to fulfill this role and to further strengthen Visualfabriq’s leading position,” said Brussé.

Matthijs has great experience taking organizations further into the next sustainable growth phase, has grown SaaS companies, thinks and acts in terms of scalability, in professionalizing ways of working, and he believes in the power of ideas sourced from a close relationship with the market. Matthijs will augment Visualfabriq’s ability and credibility to fulfill global CPG customers as they deploy our solutions worldwide.

Matthijs added, “I am honored to help Visualfabriq grow further. Once I saw the power of artificial intelligence in the Visualfabriq revenue growth management software; I was convinced that Visualfabriq can bring huge added value to companies in the CPG industry so that they can move towards sales and marketing excellence. With the enthusiastic Visualfabriq team, we have the sound basis to make great steps forward to serve our customers.”

The company is extremely thankful for the vision and leadership of co-founder Jaco Brussé and thrilled that he will remain a strategic advisor and board member.

Jaco Brussé commented, “I am extremely proud of what has been achieved since our start in 2013. For me this is a natural moment to take the next step with Visualfabriq, to give different impulses and to have new leadership stimulate further expansion. I would like to thank my co-founder Carst Vaartjes, our leadership team, all employees, our partners and primarily our customers for their support and great trust.”

Quote from new CEO Koen Matthijs

About Visualfabriq

Visualfabriq offers a revenue management software solution with applied artificial intelligence capabilities to customers in the consumer packaged goods industry. Founded in 2013, the company has grown from an international startup to a globally recognised vendor.