Streamline sourcing and optimize spend with ServiceNow’s Spend and Savings Management

[Ravikumar Iyer]

Are you a category manager or sourcing manager looking to streamline your procurement processes and gain better control over your organization's spending?

The Spend and Savings Management application in ServiceNow is here to help!

The challenge: Lack of structure in sourcing activities

Managing and analyzing sourcing activities across different verticals, business units, and categories can be a daunting task. Without a structured approach, category managers often struggle to track the efforts of sourcing teams and systematically identify areas for cost savings. This lack of visibility can significantly hinder the ability to optimize sourcing activities effectively.

The solution: Spend and Savings Management

The Spend and Savings Management application in ServiceNow provides a hierarchical structure for categorizing and thus sourcing goods and services. By integrating this taxonomy into the ServiceNow system, category managers can:

• Streamline procurement activities: Simplify the procurement process by focusing on key categories, reducing unnecessary administrative tasks.
• Track spending: Import and manage your organization's spend categories by mapping them to existing product categories. This provides clearer insights into where money is being spent, enabling better decision-making and control over expenses. The improved visibility allows category managers to maintain greater control and alignment with budget goals.
• Measure savings: Evaluate savings more effectively at the spend category level, compared to identify trends and opportunities across sourcing initiatives. This enables more strategic management of spend and drives sustainable cost savings.
• Manage risk: Monitor spend within categories to identify potential supplier risks early. This also helps ensure compliance with regulatory requirements, reducing the risk of costly penalties.

In summary, the Spend and Savings Management application in ServiceNow is a game-changer for category managers and sourcing managers. It provides the structured approach needed to manage and analyze sourcing activities, optimize costs, and enhance supplier relationships. By integrating this application into your procurement processes, you can achieve greater visibility, efficiency, and control over your organization's spending.

Ready to take your category management to the next level? Start exploring the Spend and Savings Management application in ServiceNow today!

If you’re interested in learning more about this exciting capability, you can read all about it here: Spend and Savings Management in Sourcing and Procurement Operations.