Explaining Pricing and Commercial Aspects

When licensing SAP Fieldglass, a Software-as-a-Service (SaaS) solution, customers may utilize one of two methods or models, to manage this requirement. This is reflected in either a standard subscription approach, where payment is made up front for the configured service, or, in contrast, via the legacy Pay as You Go (PAYG) model. With the PAYG model, customers see no upfront license costs but are merely billed in arrears based on the total spend that is managed through the SAP Fieldglass solution. Regardless of the number of transactions processed, workers managed, or services provided, the total spend for their external workforce management through the application drives the associated cost for the licensing of the software.

With the subscription method, customers will pay a subscription fee (monthly or annually) to use the software for the management of whatever services they configure or require with their supply base.

In addition to and separate from the defined licensing methods, the manner that one funds the SAP Fieldglass solution can also differ and reflect variance, based on how a customer determines to manage or share the associated costs for the application.

The supplier-funded model in SAP Fieldglass is a cost structure where the suppliers (such as staffing agencies or service providers) cover the fees for using the platform, rather than the buyer organization (the company that engages the workers).

In this model, the buyer organization does not fund the costs for licensing or spend that is managed through the SAP Fieldglass solution. Instead, the buyer short pays their supply base a certain agreed percentage, which is placed in a holding account that is utilized to remit payment to SAP Fieldglass for the program. The suppliers are not invoiced, nor do they make payment to SAP Fieldglass directly. The held percentage is included as part of the supplier's cost of doing business with the buying organization. This makes the platform an attractive option for companies looking to manage their contingent workforce and services procurement without direct cost.

• Buyer-Funded Model: In this pricing structure, the buyer pays for all the fees associated with the use of SAP Fieldglass. This can include implementation fees, subscription fees, and transaction fees.
• Hybrid Model: This is a combination of the supplier-funded and client-funded models. In this structure, the costs are split between the client and the suppliers. For example, the client might pay the contingent module while a supplier funds the SOW Services module.

Metering in SAP Fieldglass refers to the mechanisms used to track and measure usage of the system. This is important for both billing and compliance purposes. Key aspects of metering include:

• User Activity: Tracking how many users are active in the buyer’s tenant, which features they are using, and how frequently they log in and interact with the system.
• Transaction Volume: This comprises monitoring the number of transactions, such as the number of work orders, timesheets, or invoices processed.
• Workforce Size: Tracking the number of contingent workers, contractors, or services providers being managed through the system.
• Usage Patterns: Analyzing usage patterns to identify trends, peak usage times, and areas where the system might be underutilized or overloaded.
• Reporting and Analytics: Providing detailed reports on system usage, spending, and compliance to help clients make data-driven decisions.