Procurement - Concept
Subscription
Paying regularly for continued access to a product or service
What's it for?
Lets customers keep using a product or service by paying for access regularly rather than buying it once.
For example…
The company pays monthly for a collaboration suite; if seats grow mid-year, the next invoice rises automatically
A company pays £30 per user each month for a SaaS product and keeps access only while the subscription remains active
Think of it like…
Gym membership: you pay to keep using the facilities, and access stops if payments stop