Source-to-Pay vs. Procure-to-Pay. What’s the difference?

October 11th, 2017

You may have heard of the terms Procure-to-Pay and Source-to-Pay....


Today’s post is by Dave Wenig; Vice President of Sales and Services at SafeSourcing.

You may have heard of the terms Procure-to-Pay and Source-to-Pay. While both terms can be used to describe solutions that aim to improve the procurement process, they each have different meanings. The objective here is to provide some clarity around what we mean when we refer to Source-to-Pay.

Most will agree that a Procure-to-Pay solution is one that enables a cross-functional workflow to streamline and improve the process from the act of purchasing to accounts payable. Source-to-Pay takes this a step further, expanding the scope to include the process of actually sourcing the products or services to be purchased.

The objective of a Source-to-Pay strategy is to be inclusive of all activities related to procurement from sourcing using RFx capabilities through financial reconciliation with your organization’s systems of record. Implementing a Source-to-Pay solution that incorporates each step of your organization’s procurement process maximizes the value of your strategy.

The end result of a Source-to-Pay solution is a more tightly controlled procurement process that drives greater reductions in spend than you might achieve using Procure-to-Pay solutions alone. Plus, you will enjoy a more efficient supply chain.

At SafeSourcing, we advocate implementing a Source-to-Pay strategy and applaud organizations that have incorporated these solutions. For more information on how we can help you with your procurement needs or to discuss how you can improve your own strategic sourcing strategy, please contact a SafeSourcing representative. 

We look forward to your comments.

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