Introduction To Source-To-Pay Solutions For Supplier Performance Management

Supplier Performance Management Process

For executive decision-makers who are striving to streamline their processes, source-to-pay (S2P) solutions provide the necessary bridge between the fragmented supply chain operations and integrated supplier performance management. With technology-driven supply chain functions come rich data, insights, and automation that enable companies to gain visibility into the full procure-to-pay process, reduce costs, and improve compliance. This article provides an introduction to S2P solutions, exploring their applications and features, and offers navigation through the process of selecting and deploying provider to meet your companies company goals.

An Overview of S2P Solutions

Source-to-pay solutions provide organizations wealth of data and insights that can be used to drive transparent and efficient supply operations. By centralizing data within single platform, companies gain visibility and automation into all parts of the supply chain, allowing for improved resource alignment and strategic decision-making.

S2P solutions may include features such as automated procurement processes, analytics, supplier performance tracking, collaborative document sharing, workflow automation, and integrated risk assessment. An effective provider should also offer services that are tailored to different departments, such as cost control in finance and compliance in legal, ensuring that the system meets the requirements of each team.

Depending on the size of your organization and number of suppliers, S2P solutions can be initiated and optimized in different ways. Organizations with multiple offices may consider cloud-based solutions that allow users to access single platform anywhere. Alternatively, requiring exceptional security measures may indicate the need for publicly hosted solution, though service-level-agreements (SLAs) and other factors must be taken into account.

Initial Steps for Supplier Performance Management

The overall goal of supplier performance management is to maximize the value of each supplier relationship by managing the supplier’s performance and reducing the cost of their services. To prepare for an S2P provider, it is critical to define the various process requirements in the areas of data collection, invoice processing, vendor due diligence, and payment.

Data collection: Compiling data from multiple sources can help to create detailed analytics on supplier performance and optimize sourcing decisions. This process should include methods for capturing and comparing invoices, purchase orders, and supplier contracts, as well as maintaining the quality of data by validating the accuracy of supplier records.

Invoice processing: key function of S2P solutions is the streamlining of invoice processing, process typically burdened by manual procedures. An effective platform should provide efficient electronic invoice processing, accelerated approvals, automatic matching of purchase order to received invoices, and automatic reporting of invoice discrepancies.

Vendor due diligence: To ensure consistent compliance with legal regulations, organizations must execute thorough due diligence reviews of their suppliers and vendors. Adopting S2P solution should provide framework to streamline this process and support the supply chain’s compliance with applicable policies.

Payment management: The automation of payment processes provides organizations greater control and flexibility over the payment process and reduces costs associated with errors and discrepancies. Advanced S2P solutions can allow compliance with complex payment regulations, offer automated payment options such as virtual cards, and provide management for sales and use tax.

Next Steps

Once the financial requirements and business goals have been established, the next steps are to evaluate existing options and select provider to meet your needs. Many solutions come with trust seals, such as Global Certification Standard, that identify provider?s commitment to quality and ensures their capability to meet organizational standards.

It is also important to consider the return-on-investment, as S2P providers typically offer long-term, subscription-based pricing plans. Selecting provider is an ongoing process, as organizations must continually monitor service levels, system performance, and integration with emerging technologies.


Source-to-pay solutions are versatile and comprehensive platform for strengthening and improving procurement operations, enabling comprehensive view of the supply chain and allowing for full visibility into suppliers and vendors. While the features and services of S2P solutions vary significantly, successful deployment requires that organizations understand their goals and the factors necessary for an effective provider selection. By investing in supplier performance management solution, organizations gain the data and insights necessary for streamlined process performance and optimal supply chain performance.