Source to Pay (S2P) Software
Source to Pay (S2P)
Tradeshift’s source-to-pay software challenges the traditional buyer-supplier dynamic and offers a network-centric, AI-powered platform that re-imagines B2B commerce. Digital transformation of the source-to-pay process simplifies procurement and helps teams work collaboratively.
E-procurement made smarter
Embrace a collaborative B2B Marketplace and accelerate your procurement processes like never before. Place fewer restraints on your business while avoiding a loss of control over cost and risk.
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The definition of the phrase source-to-pay is that it represents the entire process of sourcing, purchasing, and paying for goods and services between businesses (B2B). The process begins with sourcing, negotiating, and contracting with suppliers, and ends with final invoice payment for those goods or services. It’s a complex process with several interdependent steps that can be made simpler and smoother through the use of cloud-based software such as Tradeshift.
Source-to-pay software solutions are cloud-based, online ‘software-as-a-service’ (SaaS) platforms that help make the S2P process smoother for buyers, suppliers, and operators. Tradeshift is a good example of an agile and adaptable source-to-pay software solution.
There are several steps in the S2P process. These include, in chronological order:
- Establishing business need
- Sourcing, vetting, and choosing suppliers
- Preparation: document gathering and collation
- Decision making: choosing a supplier
- Negotiating & contract signing
- Supplier onboarding
- Requisitioning and ordering (procurement)
- Delivery and receiving
- e-Invoice processing (Accounts Payable Automation)
The short version is that purchase-to-pay (P2P) is a segment contained within the source-to-pay (S2P) process. However, these terms are sometimes used interchangeably within the industry so therefore confusion may arise. Generally, the inclusion of sourcing tends to add weight and emphasis to a process that includes needs analysis, supplier selection, contracting, and supplier management.
The source to pay life cycle is the length of time needed for the steps in the source-to-pay process to occur. This length of time will vary greatly based on the industry and what is being purchased.