Procurement Risk Management in New Zealand and Australia: Goodbye challenges with ServiceNow Solutions

Reducing procurement risk and finding risk management tools have become top priorities for procurement leaders and professionals across Australia and New Zealand as increasingly more transactions become digitalised. In the public sector alone, procurement activities account for approximately 13% of GDP across OECD countries, yet are frequently impacted by compliance risks, operational efficiency challenges, sustainability concerns, and transparency issues.

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It’s time to approach procurement risk management systematically, based on data and technology. This article offers insights into unlocking bottlenecks with ServiceNow Solutions.

The changing landscape of procurement risk management

It's essential to understand that procurement professionals and managers today are concerned with far more than just pricing. The search for effective risk management tools has become a mandatory requirement in today's business environment, because:

• Compliance risk has emerged as a major concern in the public sector. Procurement processes must adhere to legislation, trade agreements, and ethical standards.
• Operational and financial risks are also prominent – such as supply chain disruptions, budget overruns, or cumbersome manual processes.
• And with growing expectations around sustainable development and social responsibility, reputational risks have also become critical factors. In this context, the ethical profile of suppliers can directly impact organisational image.

Specifically, international frameworks such as ISO 31000 (developed from the AS/NZS standards alliance) emphasise the importance of systematically identifying, analysing, and managing risks. Meanwhile, the OECD provides guidelines on procurement integrity, from preventing bid rigging to establishing public service ethics. Several countries have successfully implemented advanced models such as the EU's transparent e-procurement portals or Singapore's integrated risk models in e-procurement.

In ANZ, procurement is no longer solely the CFO's responsibility, it's a strategic challenge requiring enterprise-wide engagement.

Strategy from organisational leadership’s perspective

For CIOs and CPOs, there are two urgent priorities that need attention:

• Minimise immediate risks – addressing compliance gaps, supplier controls, and reducing errors from manual processes. This requires risk management tools to be deeply integrated into day-to-day operations.
• Transform procurement into strategic leverage – helping achieve policy objectives such as supporting local businesses, driving innovation, and ensuring sustainability.

The challenge with these two objectives lies in ensuring shortened procurement cycles without compromising control. Simultaneously, leadership needs a comprehensive view, not just of costs but also of strategic value and potential risks.

Fortunately, the very factors that make procurement complex (such as global supply chains or big data) become opportunities when leveraged correctly. While data can help with the early detection of anomalies, digital platforms can automate controls. This is where ServiceNow solutions demonstrate their strength through their ability to combine both elements.

ServiceNow – Modern leverage for procurement risk governance

As a leading digital workflow platform combining AI, data and workflows, ServiceNow provides comprehensive solutions to help ANZ organisations increase transparency, reduce manual work, and integrate risk management throughout the entire procurement lifecycle.

With integrated risk management tools, key modules include:

• Supplier Lifecycle Operations: Automate onboarding, risk assessment, and supplier performance management. This helps CIOs and procurement teams maintain a single source of truth, replacing emails, spreadsheets, and disparate records with a centralised, transparent, and controlled system.
• Procurement Operations Management: Connect existing procurement processes (including SAP, and Oracle) into a seamless experience. The system can automatically handle approvals, and verify preferred suppliers, helping reduce processing time and minimise errors.
• Accounts Payable Operations: Integrate AI to process invoices, reconcile purchase orders, detect early payment risks, and reduce financial fraud. This helps increase financial controls and improve supplier relationships.
• Contract Lifecycle Management (CLM): Manage contracts from initiation to renewal, tightly linked with supplier data and risks, ensuring terms are enforced with timely alerts.
• Third-Party Risk Management (TPRM): Enable real-time monitoring of third-party supplier risks, integrating standards such as ISO 31000 and complying with public sector audit requirements.
• ERP & Sourcing Platform Integrations: Seamlessly integrate with existing financial systems (SAP, Oracle), serving as an "orchestration layer" that preserves investments while still digitising and controlling risks effectively.
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Novabridge – Trusted ServiceNow implementation partner in ANZ

Implementing procurement risk management isn't just about technology – it involves cultural change, process transformation, and strategic approach. Novabridge is a leading ServiceNow implementation partner in Australia and New Zealand, possessing a deep understanding of regulations.

We don't just deliver technical solutions, but partner as strategic advisors who understand the ANZ operating context. Our team has implemented complex integrations between ServiceNow and SAP, built risk analytics dashboards, and trained staff to use systems effectively.

Moreover, with Novabridge’s Strategic Sourcing App, organisations can:

• Confidently modernise procurement systems
• Ensure compliance and risk control
• Build internal capability and enhance public service delivery

Explore our incredible product which is developed from ServiceNow Source-to-Pay here!

With a presence in the capitals of Australia and New Zealand, and major cities such s Melbourne, Perth, Brisbane, Canberra, and Auckland, Novabridge team is available to get to know organisations directly and build and deploy custom solutions.

ServiceNow Procurement Solutions in practice from Novabridge

Practical evidence from Novabridge demonstrates how a flexible and strategic approach can deliver results exceeding expectations in managing procurement risk. In a Proof of Concept (POC) project for the Department of Health and Aged Care (DoHAC), Novabridge supported implementing ServiceNow simultaneously across three areas: IT, Human Resources (HR), and Procurement.

The distinctive aspect of this project was applying design thinking to rapidly explore requirements, identify pain points, and pilot ServiceNow workflows in a real environment. The procurement component focused on simulating the end-to-end procurement approval process, including request submission, categorisation, supplier selection, and status tracking. Integrating risk management tools into each process step helped the organisation gain a comprehensive view of potential risks.

After 6 weeks of implementing the POC, the organisation was able to:

• Identify manual processes causing performance bottlenecks
• Visualise the procurement request journey through interactive dashboards
• Validate the effectiveness of integrating procurement into the enterprise service management system

More importantly, the leadership team gained "a realistic and comprehensive view of ServiceNow's potential for the entire organisation," opening pathways for long-term investment decisions afterwards. This case demonstrates that assessing and managing procurement risk can commence even from a small pilot, provided it's guided by partners who understand both the system and public sector operating realities like Novabridge.

Transform risks into competitive advantage

Procurement risk is no longer content sitting idle in annual risk registers, it's a domain that organisations need to approach proactively and strategically. With international standards, practical experience from leading countries, and ServiceNow procurement solutions, the ANZ public sector has the opportunity to undertake significant reforms, boost efficiency, and rebuild public trust.

The combination of advanced risk management tools and optimised processes will help organisations not only control risks but also transform them into sustainable competitive advantages.

If you recognise these challenges occurring in your organisation – consider connecting with Novabridge to explore suitable pathways together.

👉 Ready to transform procurement risks into strategic advantage? Novabridge is ready to partner with you on this transformation journey – from strategic consultation and implementation to operational optimisation.