Use Touchless Request-to-Delivery Automation to Slash Overhead and Accelerate Processes!
In today’s fast-paced business environment, efficiency isn’t just a luxury—it’s a necessity. Procurement teams are often bogged down by routine tasks that consume valuable time and resources. These low-value activities; manual purchase request approvals, reorder points, and tracking inventory levels, can hinder a company’s agility and strategic advantage. This is a great opportunity for automation with “touchless requests” workflows—a transformative approach that automates repetitive tasks, reduces overhead, and speeds up procurement cycles using a platform you probably already own: ServiceNow.
The Challenge of Low-Value Tasks in Procurement
Procurement professionals manage complex supplier relationships, contract negotiations, and strategic sourcing initiatives. However, they often find their efforts diluted by administrative tasks that offer little strategic value. According to a study by The Hackett Group,
Imagine the productivity you could unlock by automating these tasks…
What Are 'Touchless' Workflows?
A touchless workflow refers to automating processes that traditionally require human intervention. In procurement, this means automating tasks from request approvals to requisition and placing orders without manual touchpoints. By leveraging intelligent workflows, companies can create seamless procurement processes that require minimal human input. A solution like ServiceNow Source-to-Pay enables organizations to implement these touchless workflows efficiently – eliminating the need to bring in other solutions that must be implemented, integrated, explained, and trained.
And, by extending a platform already in place and understood, the learning curve is flattened, and adoption is accelerated.
Benefits of Implementing Touchless Workflows
- Increased Efficiency: Automating routine tasks accelerates procurement cycles. For instance, automated approval workflows can reduce purchase order processing time from days to mere hours.
- Cost Savings: Reducing manual intervention lowers the risk of errors and discrepancies, leading to significant cost savings. A report by Deloitte suggests that automation can reduce procurement costs by up to 30%.
- Enhanced Compliance: Automated systems can enforce compliance with procurement policies and regulatory requirements, minimizing risks associated with non-compliance.
- Strategic Focus: Freeing procurement professionals from administrative tasks allows them to focus on strategic initiatives like supplier development and market analysis.
How to Incorporate Touchless Workflows in Your Organization
- Identify Preferred and Non-Preferred Items
We did a deeper dive into Preferred Items in this previous post. Begin by categorizing items into preferred and non-preferred. Preferred items are those items that are frequently purchased and have pre-negotiated terms with suppliers. Automating the approval process for these items can significantly speed up procurement.
- Streamline Approval Processes
Implement an automated approval workflow for preferred items that may only require immediate managerial consent (or a stipend). Integrate with procurement software. ServiceNow Source-to-Pay can facilitate this by aligning approval workflows with your existing organizational structure.
- Leverage Real-Time Budget Visibility
Integrate budget management tools that provide real-time visibility of available funds to requesters and approvers. This insight ensures that purchases are made within budget constraints, preventing overspending.
- Automate Reorder Triggers
Maintain optimal inventory levels by setting up automatic reorder triggers. When stock levels fall below a predetermined threshold, the system can automatically generate a purchase order and send it to the supplier.
- Integrate with Supplier Systems
Enhance collaboration by integrating your procurement system with suppliers’ inventory and order management systems. This connected communication can factor in current lead times to ensure a controlled supply chain flow.
- Utilize Advanced Technologies
Incorporate AI and ML to predict requirement trends and optimize inventory levels. S2P can also handle repetitive tasks that reduce the likelihood of human error.
Real-World Examples
- A Global Conglomerate implemented touchless invoice processing, achieving a 70% reduction in manual handling and saving millions annually.
- A Large Manufacturer reduced its procurement cycle time by 75%, allowing the company to respond swiftly to market demands.
Overcoming Implementation Challenges
While the benefits are clear, transitioning to touchless workflows requires careful planning:
- Change Management: Ensure that all stakeholders are on board. Provide training and support to ease the transition.
- Data Quality: Automation relies on accurate data. Invest in a Preferred Items Strategy and validation processes.
- Technology Selection: Choose scalable, flexible procurement solutions that adapt to your organization’s evolving needs. We recommend ServiceNow – which you may already own. Their robust workflows can simplify several of these processes.
Conclusion
Automating low-value procurement tasks through touchless workflows is a practical solution that delivers tangible benefits. By embracing automation with tools like ServiceNow Source-to-Pay, organizations can slash overhead costs, accelerate procurement cycles, and, most importantly, allow procurement professionals to focus on strategic, value-added activities.
