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Strategic sourcing

Accelerating strategic sourcing on ServiceNow through uncertain times

Disruption is now normal. Sourcing teams that respond fastest are the ones that stopped running events in email and spreadsheets.

NPNupur PatelAug 13, 2021 · 4 min read

This post first appeared in 2021, when the pandemic forced sourcing teams to rethink how and where they worked. Since then the disruptions have kept coming: shipping bottlenecks, sanctions, tariffs, energy price swings and supplier failures. The lesson has held. Teams that can run a sourcing event quickly, with everyone working from the same information, recover faster.

This updated guide covers why strategic sourcing struggles inside large enterprises, what a sourcing platform needs to handle disruption, and how running sourcing on ServiceNow helps.

Why is strategic sourcing hard inside large enterprises?

Companies with global supply chains have spent years pursuing cost savings through consolidation, offshoring and lean inventory. The result is supply chains that work well in steady conditions and break under stress. When a key supplier fails or a route closes, the sourcing team has to find, qualify and contract an alternative, fast.

That is where the internal process shows its weaknesses. Collaboration with suppliers happens in one set of tools, and collaboration with internal stakeholders in another. Collecting feedback from procurement, finance, legal, IT and the business, then narrowing the field to two or three suppliers, can take longer than the market allows.

What are the common sourcing bottlenecks?

Challenge What it costs you
Requirements gathered by email Late or incomplete input, rework once the event is live
Supplier questions answered one by one Inconsistent answers, unfair process, delays
Responses compared in spreadsheets Errors, slow scoring and no audit trail
Evaluators scoring on their own schedule The award waits for the slowest reviewer
Award decisions disconnected from contracts Terms renegotiated and the contract starts late

None of these are new, but each becomes critical during disruption, when the window to secure supply is short.

What does a resilient sourcing platform need?

Resilience is not a single feature. It comes from a platform that removes delay and keeps everyone working from the same facts. Look for five things:

  • Connected workflows: sourcing, onboarding, contracts and payments on one data model, so a new supplier can move from shortlist to contract without re entry.
  • A good experience for every user: suppliers, evaluators and approvers can work on desktop, mobile or email without training.
  • AI where it saves time: drafting requests, reading responses and comparing bids, with a person approving each result.
  • Easy integration: links to your enterprise resource planning, supplier risk and finance systems.
  • A platform to build on: the ability to add new workflows as needs change, without another product to administer.

ServiceNow meets several of these out of the box. Running sourcing in the same instance as IT, risk and vendor management means a supplier problem raised in one area is visible in the others.

How does RFPflow run a sourcing event?

RFPflow runs natively on ServiceNow and organizes every event in four stages.

  1. Prepare: build the request from templates and past events, agree the evaluation criteria and their weights, and route the draft for approval.
  2. Publish: invite suppliers through a portal, share documents and set deadlines, with every question and answer visible to all bidders.
  3. Collaborate: bring internal stakeholders into the event, with clear owners and due dates for each section.
  4. Evaluate: Aavenir AI reads each response against your criteria and drafts scores with reasons. Evaluators accept or change them, and the ranked shortlist goes to the decision makers.

Each stage is logged, so procurement can show auditors and stakeholders how and why a supplier was chosen. When the award is made, terms move into Contractflow rather than starting again.

Run your next sourcing event on ServiceNow See RFPflow take an event from request to ranked shortlist, with Aavenir AI drafting the scores and your team deciding.
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How does sourcing connect to supplier risk?

During a disruption, the fastest supplier to respond is not always the safest to award. Financial health, sanctions exposure, data security and dependency on a single region all matter, and they are easy to skip when time is short.

Building risk checks into the event solves this. Shortlisted suppliers can start due diligence while evaluation is still running, through Onboardingflow, so the award is not delayed by checks that could have happened in parallel. The questionnaire answers, certificates and risk ratings then sit on the supplier record, ready for the next event.

The contract closes the loop. Risk findings become clauses and obligations, such as insurance requirements, audit rights or business continuity commitments, and those obligations are tracked after signature rather than forgotten in a file.

What qualities should a sourcing team aim for?

The technology matters, but so does the operating model it supports. Strong sourcing teams in uncertain markets tend to share five traits:

  • Fast: they automate routine steps and act before a disruption becomes a shortage.
  • Agile: they adapt criteria and processes as conditions change.
  • Resilient: their process is consistent and secure, whoever is running the event.
  • Human: they keep suppliers and colleagues informed, and treat the process as a relationship, not a transaction.
  • Connected: they break down silos between sourcing, legal, finance and the business.

How should you measure progress?

Pick a few measures and track them against your own baseline: time from request to award, evaluator hours per event, the number of suppliers invited per event and the time from award to signed contract. If those numbers improve, the team has more time for the complex, strategic acquisitions that need judgment. See procurement contract management.

The bottom line

Disruption is a permanent condition, not a phase. Strategic sourcing that runs on a connected platform, with AI doing the reading and people making the awards, lets a team respond in days rather than months.

Start with the bottleneck that costs you most, whether that is gathering requirements, scoring responses or moving from award to contract, and fix it on the platform your teams already use. The gains compound with every event you run.

Frequently asked questions (FAQ)

Frequently asked questions

Why run strategic sourcing on ServiceNow?

Running sourcing on ServiceNow puts events in the same instance as IT, risk and vendor management, under your existing roles and audit history. Suppliers, evaluators and approvers work on one platform, and awarded terms move into contracts without re entry. See Aavenir on ServiceNow.

What are the stages of an RFPflow sourcing event?

RFPflow organizes each event in four stages. Prepare builds the request and agrees criteria, publish invites suppliers, collaborate brings stakeholders in, and evaluate scores responses, with Aavenir AI drafting scores for evaluators to accept or change. Learn more about RFPflow.

How does AI help sourcing teams during disruption?

AI reads long supplier responses against your weighted criteria and drafts scores with reasons, so evaluators decide faster when supply is at risk. It can also draft requests from past events. A person approves every score and award. Read how to run a request for proposal.

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Keep reading

Strategic sourcing Faster sourcing cycles with AI and connected contract management How AI and a connected source-to-contract flow shorten sourcing cycles: drafted requests, scored bids, parallel onboarding and clauses agreed during the bid.Read more Procurement 7 key advantages of direct procurement Seven advantages of direct procurement, from cost and quality to supplier relationships, risk and sustainability, with practical steps to achieve each one.Read more Vendor management Automate vendor onboarding workflows and drive excellence in vendor management Why vendor management starts with onboarding, and how automated onboarding, due diligence and supplier portals improve control and the supplier experience.Read more

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