Over $1million in savings and better procurement efficiency for Factorial

The Challenge

Founded in Barcelona in 2016, Factorial has grown to become one of the leading HR software solutions - automating and centralizing administrative tasks to provide insights and help run businesses more smoothly. 

As demand for its platform surged, Factorial expanded rapidly, through a combination of acquisitions and substantial organic growth, from just 50 employees to more than 1,200 in just 3 years.

That kind of scale brought a new set of operational challenges, particularly around software spend.

“We were growing fast, and that meant bringing on new tools and scaling existing ones to support the business. Software licenses are one of the major line items in our budget, so of course we wanted to optimize our costs, but we didn’t have the market knowledge to do this effectively.” Moran Laufer, CFO at Factorial

Even with a seasoned finance team in place, benchmarking contract value and identifying savings opportunities was near impossible.

“We had a strong procurement function internally, but we just didn’t have access to the right data. Without visibility into what others were paying in circumstances similar to ours, or understanding whether we were negotiating the best terms, we knew we were almost certainly overpaying,” said Laufer.

The Solution 

Factorial began looking for a partner that could bring both access and transparency to industry data and benchmark - and quickly found Vertice.

The partnership began with a detailed audit of Factorial’s software stack. Upon completion, Vertice not only unveiled highly useful internal data and benchmarks to build upon, but also uncovered numerous opportunities for savings.

“Vertice gave us a clear view into where we were overspending. But more importantly, they provided a roadmap to fix it. Their benchmarking did more than just give us intel - it meant we could negotiate from a position of strength.” Moran Laufer, CFO at Factorial

As a result of this deep-dive audit and the expertise on display, Vertice’s role  expanded to manage the entire negotiation process - freeing Factorial’s team to stay focused on strategic growth.

“Initially, we thought we would continue to negotiate contracts internally,” Laufer explained. “But after seeing how effective Vertice’s procurement team was at securing better deals, we’ve made them a bigger part of our process.”

Vertice is now a true extension of both Factorial’s finance and procurement teams, leading on SaaS purchases and renewals, securing savings, and ensuring the company scales its tech stack efficiently.

The Results 

The results were fast and measurable. Within the first year of the partnership, Vertice helped Factorial save nearly $1 million across its software contracts - representing average savings of over 25%.

But the benefits went far beyond cost reductions.

“Working with Vertice helps us enter into better relationships with our vendors,” said Laufer. “We’re able to negotiate better and more reasonably, crafting data-backed narratives that resonate with our vendors without being demanding. We have the best of both worlds - more confidence in the strength of our supplier relationships, and lower costs.”

That sense of confidence, and the impact of working with Vertice, has proven critical as Factorial continues to expand globally. Factorial now considers Vertice an essential part of its operations.