What is Source-to-Pay?

The Source-to-Pay (S2P) process involves sourcing, searching, negotiating with, and hiring suppliers for goods and services in exchange for payment. S2P involves demand preparation, sourcing, bidding, assembling a team, making decisions, signing contracts, transitioning from procurement to payment, and billing.

From spend management to vendor management to performance management to strategic sourcing, source-to-pay tracks it all. An efficient and effective source-to-pay procurement procedure relies on specialized software and data collection tools. S2P also helps in organizing data into categorized files and simplifies finding suppliers. 

S2P helps enterprises save time, effort and resources on repetitive tasks and put the focus on activities that actually drive value. Source-to-pay software can help enterprises cleanse, validate and classify spend data — so that they can analyze and identify opportunities that drive maximum savings.

Benefits of Source to Pay  

• Increased transparency into procurement through data categorization
• Combined key points to fasten the contract signing procedure
• Strengthened regulation, contractual and regulatory compliances
• Trusting relationships are built between vendors
• Forecasting and negotiation for better and accurate pricing management
• Saves money from the beginning of the procurement process
• Maintains consistency with policy generation under dynamic situations
• Introduction of a single course
• Increases networking and communication among suppliers
• Depletes risk due to diverse marketing techniques

Conclusion  

Source to pay boosts user adoption and increases spend compliance with easy-to-use, consumer-style, eCommerce website type purchasing tools. With advanced S2P software, enterprises can avoid repetitive tasks and processes — saving time, effort and money, and instead focus on activities that drive more value.