The Procurement Glossary » Source-to-Contract (S2C)
Source-to-Contract (S2C)
Strategy & Operations
Also known as: S2C
Definition
The upstream procurement process from identifying a need through sourcing to signing a contract.
Explanation
Source-to-contract covers spend analysis, sourcing strategy, RFx, negotiation and contracting — the strategic front end that determines value before any order is placed. It hands off to procure-to-pay, which executes and pays against those contracts.
Example
The source-to-contract team runs the tender and signs the deal; procure-to-pay then handles ordering and payment.
Related terms
- Strategic Sourcing — A structured, data-driven approach to sourcing that aligns supplier selection with long-term business goals rather than one-off price hunting.
- Procure-to-Pay (P2P) — The end-to-end operational cycle of buying goods and services — from requisition and approval through purchase order, receipt, invoice matching and payment.
- Source-to-Pay (S2P) — The widest procurement cycle — strategic sourcing and supplier selection on top of the operational procure-to-pay process.
- Contract Lifecycle Management (CLM) — The end-to-end management of contracts using software — authoring, negotiation, approval, execution, storage and renewal.
Related concepts
- Source-to-Pay (S2P) — The widest procurement cycle — sourcing and supplier selection on top of the operational procure-to-pay buying process.
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Frequently Asked Questions
What is Source-to-Contract (S2C)?
The upstream procurement process from identifying a need through sourcing to signing a contract. Source-to-contract covers spend analysis, sourcing strategy, RFx, negotiation and contracting — the strategic front end that determines value before any order is placed. It hands off to procure-to-pay, which executes and pays against those contracts.
Can you give an example of Source-to-Contract (S2C)?
The source-to-contract team runs the tender and signs the deal; procure-to-pay then handles ordering and payment.
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