What is source-to-pay (S2P)?

Source-to-pay (S2P) is a business process that encompasses all activities related to the procurement of goods and services, from identifying the need for a product or service to making the final payment to the supplier.

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Source-to-pay process overview

Source-to-pay (S2P) is a process that starts with finding, negotiating with, and contracting the supplier of goods, and culminates in final payment for those goods.

S2P software relies on technology, big data, and digital networks to create procurement efficiency. Rather than treat procurement as a series of disparate tasks, best-in-class organizations aggregate purchases across business units to improve performance, provide better spend analysis, and drive business value.

Digitalization of core source-to-pay processes and documents simplifies the procurement process and fuels collaboration.

Benefits of a source-to-pay platform

Those who adopt a source-to-pay platform:

See higher sourcing savings through increased visibility into procurement
Integrate key processes into a single platform to get to signed-contracts faster
Strengthen procedural, regulatory, and contractual compliance
Improve collaboration, trust, and spend among trading partners
Negotiate better pricing and have more accurate forecasting

Improve access to intelligence, manage spend, and maintain compliance

Source-to-pay software turns what is traditionally a complex and inefficient procurement process into a source of productivity, cost savings, transparency, and value creation. With embedded source-to-pay best practices, collaboration among buyers and suppliers improves, deals get done faster, and human errors are reduced or eliminated altogether.