Source-to-contract (S2C) refers to the collective set of procurement processes adopted when sourcing products or services. The process begins with analyzing the product or service requirement and developing a sourcing strategy. In accordance, S2C process includes all activities performed by the project and procurement departments to help ensure the effective acquisition of goods and services. Related activities that S2C cover can entail the analysis of needs and availability of suppliers within targeted market, development and rollout of sourcing strategies, the entire RFx process to include RFI, RFP, RFB, & RFQ, contract negotiations, contract implementation, and supplier performance management.
Contract Lifecycle Management (CLM)
According to Gartner, CLM is a solution and process for managing the life cycle of contracts created and/or administered by or impacting the company. These include third-party contracts, such as outsourcing, procurement, sales, nondisclosure, intellectual property, leasing, facilities management and other licensing, and agreements containing contractual obligations now and in the future. (Gartner Glossary)
CLM is worthy to mention here as it overlaps both Source-to-Pay (S2P) and Procure to Pay (P2P) cycles.
Source-to-pay or S2P is the entire end-to-end process involved in procurement. It spans every process, right from spend management, strategic sourcing and vendor management to purchasing, performance management and accounts payable.
S2P is a software vital for smooth functioning of purchasing departments. This particular software enables multiple activities such as auctions, spend analysis, purchasing categories management, purchase requisitions, sourcing events, billing and vendor relations within the same solution. (Zycus)
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. Those who adopt a source-to-pay platform: (SAP Ariba)
- 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
A procure-to-pay (or purchase-to-pay) system is a fully integrated solution designed to support an end-to-end process that begins with goods and services requisitioning and ends with ready-to-pay files for upload into an accounts payable system. Procure-to-pay solutions use a scan-and-capture service, supplier portal and/or a multi-enterprise network to enable suppliers to submit invoices electronically. In addition to core e-procurement functionality (including e-requisitioning, approval workflow and e-catalog management), procure-to-pay solutions offer purchase-order-to-invoice matching and processing for invoices that don’t match or when goods are returned. (Gartner Glossary)
Procure to Pay Software
G2 blog titled Best Procure to Pay Software: procure to pay software manages all procurement activities, from purchasing to vendor payments. This type of software helps companies streamline procurement operations and increase efficiency by using one centralized system instead of separate solutions. Procure to pay solutions are mostly used by procurement professionals but can also be leveraged by accountants to monitor invoices and payments. Suppliers may also use procure to pay software through online portals. In addition, to be selected in this category, the following would need to be met:
- Consolidate procurement information from multiple data sources
- Manage all or most operations that are part of the procurement cycle
- Create and implement purchasing policies and best practices
- Monitor financial transactions related to procurement
- Define and manage procurement business processes
According to G2, the highest rated procure to pay software from a list of 40 vendors are listed as follow:
- SAP Fieldglass
- Coupa Procurement
- Oracle Procurement Cloud
- SAP Ariba
- Basware Purchase to Pay
A great deal of information exists on the three topics highlighted here however, the needs of each client will differ based on a multitude of factors such as spend analysis, category strategy, sourcing execution, market intelligence, contract management, supplier relationship management, order management, spot buying, accounts payable, master data management, catalog management, help desk and buyer portal services, to mention a few. The research and time dedicated by RREVENU will consider all the shared requirements by the client in order to come up with the best solutions and cost.
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