The source-to-pay process spans a series of activities like spend management, strategic sourcing, vendor management, purchasing, performance management, and accounts payable. When compared to the procure-to-pay process, the S2P process adds the strategic sourcing step before the procurement process. The source-to-pay process includes strategic procurement activities like spend analysis, sourcing, contract management, supplier management, and final activities like e-procurement, purchase order processing, invoice automation, accounts payable, and payment processes. Another definition of the source to pay is the end-to-end sourcing and procurement process for finding, evaluating, and contracting with suppliers of goods or services, ending with vendor payment. Identification of the right supplier is the first step of the source-to-pay process and payment to the supplier is the last step of the process. The source-to-pay process (S2P) or source 2 pay covers all the procurement activities that involve the supplier (vendor) and the organization.
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