A new feature in the latest version of the ServiceNow Now Platform aims to simplify procurement management by centralizing multiple procurement teams, automating workflows and providing sourcing visibility.
With enhanced automation and self-service capabilities, Procurement Service Management offering the San Diego release of the Now platform makes it easy for users to speed up source-to-pay processes using real-time benchmarking and SLA risks. It also limits irregular procurement actions as well as enhancing poor procurement experiences using pattern matching and trend analysis, the company said.
“We’ve modernized the way we run procurement operations with the goal of redirecting the resources users have to all of their procurement teams,” said Colby Blakeman, director of product management with the unit business acquisition of ServiceNow. “It allows them to focus on more strategic tasks by automating repetitive, low-cost and manual tasks.”
The new offer works with SAP Ariba and Coupa Procurement as well as with many user-generated home-grown procurement packages. ServiceNow’s new software is compatible with other products through its Integration Hub technology, using low -code and no -code capabilities to connect to workflows, Blakeman says.
Working closely with users, ServiceNow has recognized that ERP systems are great at being a system of record where users can log an invoice and pay against it. But the process involved in making or modifying such a transaction does not exist, Blakeman said.
“Suppliers with cash flow issues asking to be paid in advance typically send an email to an organization that sits in an inbox waiting for someone to work on it,” Blakeman said. “In this version, suppliers can retrieve the request via email on behalf of the centralized procurement team, raise the request, and create a playbook that guides users through the process.”
ServiceNow said many requests to procurement teams are focused on procuring products and services. As such, the company is specifically focused on automating simpler tasks including procurement status inquiries, supplier complaints and return orders.
“This product helps teams refocus on strategic issues by replacing responsibilities for mundane tasks with more self-service options,” said Kirsten Loegering, vice president of product management, ERP solutions with ServiceNow.
Genpact, a service provider that specializes in digital transformation, handles procurement responsibilities for approximately 100 different clients, including a Fortune 50 firm. Those responsibilities range from handling routine transactions to negotiating agreements for clients.
“We have clients who are taking centralized and decentralized procurement strategies, but we’re trying to push them toward centralization,” said Steve Simko, leader of the global procurement service line at Genpact. “For example, if a client wants to hire a new supplier, he or she can check with the central team to see if the organization already has a supplier on board that provides what they need.”
Given Genpact’s wide range of services and support responsibilities, Simko decided on the ServiceNow product because it covers the needs of his clients as a whole.
“You can layer [ServiceNow] product with a range of purchase functions [teams] perform and all the white spaces in between, “Simko said.” It allows us to assist them with what system to choose, who is the right supplier, and how to work with that supplier. “
One analyst agrees that the new offering, one of the few small products available in this growing market that includes Oracle and SAP Ariba, should serve traditional ServiceNow users well, especially through centering procurement activities on multiple procurement teams.
“The ability to offload routine transactional work, having greater visibility across all teams and being driven by workflow automation is appropriately timed for (ServiceNow) users,” he said. said Patrick Reymann, Research Director at IDC. “But I’m interested to know how easy it is to use with other existing procurement processes and software.”
The Procurement Service Management offer will work with Gekkobrain, an ERP company ServiceNow acquired in 2021 that serves to extend the company’s Creator Workflow product features. It is also complementary to Celonis procurement software that helps users prioritize processes for automation, including source-to-pay. ServiceNow announced a strategic partnership with Celonis earlier this year.
As Editor At Large with TechTarget’s News Group, Ed Scannell is responsible for writing and reporting breaking news, news analysis and features focused on technology issues and trends affecting corporate IT professionals.