The Procurement Glossary » Source-to-Pay (S2P)

Source-to-Pay (S2P)

Procure-to-Pay

Also known as: S2P

Definition

The widest procurement cycle — strategic sourcing and supplier selection on top of the operational procure-to-pay process.

Explanation

S2P joins the upstream 'which supplier and what price' decisions (sourcing, RFQ, negotiation, contracting) to the downstream 'buy it and pay for it' execution, ideally on one dataset so negotiated prices actually reach the catalog buyers use.

Example

A supplier is sourced and contracted, its prices load into the catalog, and staff then requisition, receive and pay against them — one S2P flow.

Related terms

• 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.
• Strategic Sourcing — A structured, data-driven approach to sourcing that aligns supplier selection with long-term business goals rather than one-off price hunting.
• Sourcing — The upstream procurement activity of finding, evaluating and selecting the suppliers a business will buy from.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.

Related concepts

• Source-to-Pay (S2P) — The widest procurement cycle — sourcing and supplier selection on top of the operational procure-to-pay buying process.

Frequently Asked Questions

What is Source-to-Pay (S2P)?

The widest procurement cycle — strategic sourcing and supplier selection on top of the operational procure-to-pay process. S2P joins the upstream 'which supplier and what price' decisions (sourcing, RFQ, negotiation, contracting) to the downstream 'buy it and pay for it' execution, ideally on one dataset so negotiated prices actually reach the catalog buyers use.

Can you give an example of Source-to-Pay (S2P)?

A supplier is sourced and contracted, its prices load into the catalog, and staff then requisition, receive and pay against them — one S2P flow.

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