Right time for digital procurement transformation with ServiceNow Source to Pay platform

​​In an era of comprehensive digitalisation, many government organisations are facing waves of budget and workforce cuts while still needing to optimise procurement processes. Yet, procurement operations remain entangled in outdated manual methods, creating additional pressure on procurement teams.

In this article, Novabridge analyses why it's time for change, especially in the context of budget cuts in New Zealand, and how ServiceNow Source to Pay platform (S2P) and Strategic Sourcing can be the transformative solution for your organisation!

The current state of Procurement in New Zealand: Increasing pressure

New Zealand's public sector is experiencing one of the largest workforce reductions in recent history. According to the latest data from RNZ and the Public Service Commission, since December 2023, nearly 10,000 positions in the public sector have been cut, with many agencies having to reduce budgets by 6.5% to 7.5%. Notably, public sector employment decreased by 4.2% in the year to December 2024.

In this environment, procurement teams face an unimaginable challenge: doing more with fewer resources. They must maintain efficient procurement processes, ensure compliance and achieve cost savings, but with significantly reduced staff.

Every day, procurement professionals across New Zealand are:

• Processing hundreds of manual purchase requests
• Coordinating with multiple stakeholders via email and phone
• Tracking progress using complex Excel spreadsheets
• Dealing with issues arising from a lack of visibility and real-time data

The hidden costs of these manual processes aren't just time and money, but also the exhaustion of talented staff who are struggling with paperwork instead of creating strategic value.

Key challenges of manual Procurement Operations

Fragmentation and Lack of integration

Most organisations in New Zealand operate with fragmented procurement systems, where data is isolated in different systems. This creates "information islands", making it nearly impossible to track spending, manage suppliers and analyse performance.

A typical procurement officer works with:

• Separate ERP systems
• Email approval processes
• Contracts are stored in multiple folders
• Reports are manually created from various data sources

Extended approval cycles and high error rates

Manual approval processes often take many days or even weeks to complete. Purchase requests can become "stuck" on an approver's desk, causing delays in service delivery and project implementation.

Furthermore, manual data entry leads to high error rates, with research showing up to 30% of invoices having discrepancies with purchase orders or contracts. These errors not only create additional work but also damage supplier relationships.

Staff stress and burnout

As procurement teams face increased workloads due to staff reductions, stress and burnout become common.

"Procurement professionals are working longer hours, handling more requests, and under constant pressure to 'work faster'. This is not only unsustainable but counterproductive when the best employees leave due to exhaustion."
- Charles Bonfante, Director at Novabridge New Zealand, shared.

These issues are particularly serious in New Zealand, where staff cuts have exacerbated the pressure on remaining procurement teams. Clearly, the consequential result will be budget damage when ROI declines.

Efficient transformation with ServiceNow Source-to-Pay

Amid these challenges, ServiceNow has emerged as one of the leading names for digital transformation solutions. As the AI platform that combines AI, data and workflows from hundreds of thousands of successful case studies across countries, especially in the United States, where it originated, the ServiceNow AI platform brings together all the outstanding elements to solve Procurement Management Operations.

Specifically, ServiceNow Source-to-Pay (S2P) is a transformative solution, providing the most optimal platform to digitise and automate the entire procurement process.

End-to-End Automation

ServiceNow S2P automates the entire process from request to payment, eliminating manual steps and minimising human intervention. This includes:

• Intelligent request management: Automatically routes requests to the appropriate approver
• Automated approval processes: Apply business rules to expedite approval processes
• Automated purchase order creation: Converts approved requests into purchase orders
• Smart invoice matching: Automatically compares invoices with purchase orders and goods receipts

Comprehensive System Integration

A key differentiator of ServiceNow S2P is its ability to seamlessly integrate with existing systems, creating a single reliable data source. This:

• Connects ERP systems, contract management and supplier management
• Synchronises data between systems to ensure consistency
• Eliminates the need for manual data entry and duplication

Real-Time Analytics and Reporting

With ServiceNow S2P, procurement teams can access real-time analytics on spending, supplier performance and contract compliance. Intuitive dashboards and pre-configured reports allow:

• Tracking key procurement KPIs such as cycle time and contract spend ratio
• Identifying cost-saving opportunities
• Predicting future procurement needs
• Objectively evaluating supplier performance

In summary, with all these outstanding and essential features, employees are empowered with the right tools, transforming from transaction processors into strategists, creating real value for the organisation.

Novabridge leverages ServiceNow Source to Pay platform with Strategic Sourcing App

Organisations facing complex periodic procurements, such as ICT investments or multi-stakeholder service contracts, should consider Novabridge's Strategic Sourcing App.

The Strategic Sourcing App extends the capabilities of ServiceNow S2P by adding specialised functions for complex procurement without losing the benefits of the core platform:

• Multi-stakeholder assessment: Enables complex approval processes with multiple levels and stakeholders
• Flexible process framework: Ability to adjust processes according to specific procurement cases
• Multi-criteria evaluation: Provides a complex evaluation framework that goes far beyond the lowest price
• Specialised RFx management: Comprehensive support for RFI, RFP, RFQ and EOI processes
• Improved procurement processes: Accelerates requesting, planning and approval, market release, evaluation and supplier qualification, negotiation and contract management on a single end-to-end business procurement process
• Unmatched accountability: Every decision, modification and approval is recorded in a complete audit trail, particularly important for government agencies
• Support for complex evaluations: Builds weighted multi-criteria scoring mechanisms, allowing evaluation committees to reach supplier selection decisions based on both price and non-price criteria
• Seamless contract management integration: Transitions from evaluation to contract implementation without losing critical data

ServiceNow S2P combined with Novabridge's Strategic Sourcing App is particularly valuable in the New Zealand digital transformation context because:

• Government Procurement Rules compliance: Ensures all procurement processes adhere to regulations
• Absolute transparency: Provides complete audit trails for all decisions
• Maximum efficiency with minimal resources: Allows reduced procurement teams to maintain efficient operations
• Optimising value from public spending: Ensures the best value for money in all procurement activities

Novabridge - Experts in digital procurement transformation

Procurement is in Novabridge's DNA. We weren't just founded with procurement expertise but were born on procurement, making us uniquely qualified to be a trusted ServiceNow partner for strategic sourcing and ServiceNow Source to Pay platform globally, especially in the Australia and New Zealand region.

This extensive procurement expertise has helped Novabridge implement critical projects for the Australian Federal Government.

Explore the case studies from Novabridge here!

With headquarters in Canberra, Australia and presence in both Wellington and Auckland, New Zealand, Novabridge brings consulting, implementation and post-deployment optimisation services for ServiceNow S2P and Strategic Sourcing App across the region.

In essence, ServiceNow Source to Pay platform and Novabridge's Strategic Sourcing App are not at odds but part of the same continuum. S2P is ideal for straightforward, repeatable processes, while the Strategic Sourcing App shines when the road gets rocky and requires more than just a purchase order.

Final thought

In the context of global budget cuts and operational optimisation, the question is no longer "whether to implement digital procurement transformation," but "how much longer can you delay?" Imagine a working environment where your procurement team focuses on strategy instead of paperwork, procurement cycles are reduced from weeks to days, and leadership can monitor spending in real-time.

This isn't fiction but reality occurring in organisations that have adopted ServiceNow S2P combined with Novabridge's Strategic Sourcing App.

Contact us now to discover a solution that can help your organisation save 30-50% in procurement processing costs.

Don't let your team be the last ones still struggling with manual processes while competitors have successfully digitally transformed.

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