KPMG, ServiceNow to automate finance and supply chain workflow

Global professional services firm KPMG has collaborated with American software company ServiceNow to help its client automate their finance and supply chain workflows. 

KPMG and ServiceNow’s partnership dates back more than a decade, where they jointly created new offerings in areas such as information technology, human resources, risk and cybersecurity, and environmental, social and governance (ESG) to cater to their global clientele. 

The extended partnership combines KPMG’s business expertise with ServiceNow’s technology, especially their recently announced AI-powered finance and supply chain workflows to streamline the existing procurement and supply chain systems of clients, while helping them reduce costs and increasing efficiency.  
KPMG said in a press release that it can now use the new workflows to modernise their own processes. Further, ServiceNow will leverage KPMG’s advisory expertise to optimise operations within its own finance organisation. KPMG will also embed ServiceNow’s recently announced generative AI capabilities into their operations to help enhance the self-service and work experience for employees and clients.  

Supply chain automation, in basic terms, refers to the use of modern technologies such as AI/ML, robotics, IoT, among others, which automate traditionally manual tasks to streamline workflows and increase efficiency.  

According to ServiceNow, there is a-$11 billion total addressable market by 2025 for sourcing and procurement operations as well as a multibillion-dollar opportunity for finance and supply chain solutions that bring together people, processes, data, and technology on one, simplified platform.  

Many internal customers are frustrated by the lack of transparency and fragmentation across the procurement and approval processes, said Bill Thomas, Global Chairman and CEO of KPMG.  “Through this expanded alliance, we will help to deliver even more value and efficiency for clients—expediting their digital transformation journeys so they can achieve their business goals,” he added. 

Chairman and CEO Bill McDermott said, “Our co-developed AI-driven solutions will maximise productivity and profitability across finance, supply chain, and procurement operations.” 

Today more and more companies are moving to IT, HR, finance and supply chain automation. In a report published in May, research firm Gartner predicted that by 2026, 75% of large enterprises will be using AI, ML, predictive analytics and smart robots in their warehouses to automate supply chain and will invest heavily in cyber-physical systems in distribution centres to improve decision making. 

For example, in February, retail giant Gap's logistics business teamed up with logistics firm UPS unit to offer automation and supply chain capabilities to apparel and footwear merchants. Retail giant Walmart has also said in April that the company anticipates that about two-thirds of its stores will be serviced by some kind of automation, about 55% of fulfillment centre volume will move through automated facilities and that unit cost averages could improve by about 20%. 

Many more examples will follow in the coming months. However, according to research and advisory firm IDC, while many companies (33%) may have some degree of automation, these initiatives are disjointed and do not support a fully automated end-to-end supply chain planning environment. That said, they often rely on siloed automation, reactive and discrete interactions between humans and machines. Despite the challenges, Gartner argues at least 73% of average supply chain IT budget will be allocated to growth and performance.