The Source-to-Pay Process Made Simple

 The Source-to-Pay Process Made Simple

The source-to-pay process does not have to be complicated. Although it is an integral part of every business’s success, it does not have to be a horrific task to do each and every cycle. All it has to do is to be planned out, orchestrated properly. How does the source-to-pay system work? It all depends on the needs of the business, but, the general structure of all systems is pretty straightforward. Let us explain… 

Sourcing through Paying

The whole source to pay, also known as s2p, strategy can be as complicated or as simple as the planner makes it. In simple terms, the s2p process consists of a series of steps that orchestrate the endeavor to source goods and services then implement the contracts, order the goods, then pay for the goods. In plain English, source-to-pay means from the source of the services and goods to the payment of the services and goods. Much like the procurement process, however, there are at least a couple of more steps involved.


During the planning phase of the s2p process, the people that will be involved in the process will have a chance to lay out the entire operation of the process and have a good look at it. They will be able to discover hidden problems and difficulties that might arise as the steps of the process unfold. In this step, the company can determine the best route for their company to take in order to acquire the best goods and services for the company’s needs.


In the sourcing phase of the s2p process, the company can find the best possible matches of sources for the types of goods and service3s that they need. As technology becomes more prominent in the daily operations of different businesses around the world, artificial intelligence has made the sourcing of vendors extremely efficient and simple. Algorithms can determine the best sources that are the most reliable and have the best prices for the needs of the business. Then they can compare the best of the best side by side so that the company can get the very best sources for each and every need that they have.


In the buying phase of the s2p process, the company will find and order the goods and services that were discussed and agreed upon in the souring phase. In most cases, there will be contracts that stipulate the agreements of both parties involved in the procurement process. This is where the company has to be careful to make sure that the same prices that were agreed upon in the sourcing phase are upheld in the ordering process. Here is another area that artificial intelligence has been able to help a lot with.


The paying phase of the source-to-pay operation is where the bills are paid and the invoices are satisfied. Depending on the number of goods and services that were purchased, this whole phase can be a bit complicated…but it doesn’t have to be. Once again there is a powerful software platform available that can help to keep all of the invoices taken care of along with sending out receipts and squaring up the money that was spent.


Although the procurement aspect of every business is imperative, it can be put into simple terms:

  • Source
  • Buy / Order
  • Pay

Finding the best sources, ordering the things that you want from the vendors, then paying for the goods and services. Simple, right?

Although the steps for every company will vary with needs and specifics, all in all, what it boils down to is pretty simple. Find the stuff, order it, then pay for it in the most efficient way possible.

Danny White