What is Source-to-Pay?
Source-to-Pay (S2P) is the process by which businesses and organizations find or “source” suppliers, and then negotiate and execute contracts to receive goods or services. This process is completed by paying for these goods and services.
Businesses streamline this S2P process by utilizing an end-to-end automation solution for managing and optimizing all of the components of this cycle.
Corcentric has created an innovative solution for source-to-pay that helps businesses save money, increase efficiency, reduce risk, and improve working capital to drive measurable, sustainable results.
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The Source-to-Pay process at a glance
As you can see, our software streamlines all of these micro-processes to create a cohesive continuum across strategic sourcing, supplier management, contract management, procurement, invoice management, financing, and payments.
The end goal is the optimization of these essential business functions to not only create cost savings, but also improve the functionality of teams. Our single platform solution also provides real-time data that allows your sourcing and procurement teams to improve forecasting, category management, decision making, spend analysis and more.
Establishing the best procurement strategies starts with insightful analytics. Whether you’re looking for user-friendly dashboards and reports across source-to-pay or require deeper insights into spend, Corcentric Analytics lets you turn your data into an insight-fueled strategic driver for your business.
Being strategic and proactive in your sourcing activities is key to expediting time-to-market. As a practitioner-based sourcing solution built for and used by Sourcing professionals, Corcentric Sourcing provides a collaborative, simple yet powerful solution to meet any sourcing needs
Ensuring success is a two-way street with your suppliers. By consolidating supplier information and using the proper tools to manage performance and risk, Corcentric Supplier Management helps turn supplier relationships into a source of innovation and competitive advantage.
Contract Lifecycle Management
Contracts are the heart of every business relationship. From requests to approvals to amendments, best-in-class organizations leverage Corcentric Contract Lifecycle Management to monetize contract assets around a single source of contract data truth.
Happy buyers equals procurement success. Corcentric e-procurement management drives process efficiency to achieve savings, compliance, and risk management goals through consumer-like catalogs and best-in-class requisition and PO workflow management.
Harmony between Procurement processes and Accounts Payable starts with state-of-the-art invoice management and invoice processing. Reduce costs and increase cash flow while boosting compliance and team efficiency.
Whether they be OPEX or CAPEX, aligning budget management and cost allocation efforts with spend management is always best practice. Corcentric Financial Management ensures spend compliance, collaboration, and control to create financial harmony when closing the books.
Payments + Financing
Digitizing payments is at the heart of digital transformation and essential for improving working capital insights. Corcentric Payments makes the last mile in your payments process seamless with zero downtime or cost.
The one thing that really sets us apart is our Core Framework– the brain and heart of the Corcentric Platform. It’s the smartest and most powerful tool on the market to manage the complexity of enterprise business processes, as opposed to department-level functions.
How does source-to-pay work?
Source-to-pay is a process that starts with the sourcing of raw materials, goods, and/or services by finding appropriate suppliers and then negotiating and executing contracts with those suppliers. Procurement then sends purchase orders (POs) to the suppliers. Once the order is fulfilled and received, Receiving enters the Goods Receipt into the purchasing system or ERP and accounts payable (AP) receives an invoice from the supplier. Once AP matches the invoice to the PO and the Goods Receipt, the invoice is sent straight through to the ERP or financial application for payment.
How is source-to-pay different from order-to-cash?
Source-to-pay (S2P) is the buyer side of a transaction, from sourcing materials to PO to payment. Order-to-cash (O2C) is the supplier side of the transaction, from PO receipt and fulfillment to invoicing and receiving payment.
What is the source-to-pay process utilizing Corcentric’s Source-to-Pay Platform?
At Corcentric, our Source-to-Pay platform is the single technology that incorporates all the necessary steps to optimize Procurement’s and AP’s functions:
• Our platform starts with an Analytics module that provides the data and insights necessary to make the right sourcing decisions.
• Our Sourcing solution helps make the optimal sourcing decisions.
• Our e-Procurement module provides best-in-class requisition and PO workflow management.
• Corcentric’s platform also assists in Supplier and Contract Lifecycle Management.
• Invoice Management links Procurement with Accounts Payable to reduce costs, increase cash flow, and ensure accuracy.
• Financial Management aligns budget management and cost allocation efforts with spend management.
• Corcentric Payments is an electronic payments solution that automates and streamlines B2B payments.
What are the primary KPIs of source-to-pay?
• Spend Under Management – the percentage of total enterprise spend (direct and indirect spend including services and capital spend for some groups) that a procurement organization manages or influences
• Savings/Cost Savings
• Addressable Spend that is sourced
• Number/percentage of enabled suppliers
• Procurement technology adoption rates
How does source-to-pay help suppliers?
When suppliers are transformed into strategic partners, it’s a win-win for both parties. Corcentric’s suppliers appreciate the easy-to-use Supplier Portal that lets them flip POs into e-invoices and have full 24/7 visibility into the status of each invoice, reducing the time they spend on phone calls and emails to track payments. This allows them to manage their own cash flow and working capital.
What makes Corcentric’s Source-to-Pay so effective?
Corcentric’s unique combination of technology and services will help ensure that organizations achieve their business objectives. On the technology side, the Corcentric Platform is a full S2P suite covering Source-to-Contract (Sourcing, Supplier Management, Contract Lifecycle Management), Procure-to-Pay (Procurement, Invoice Management, Financial Management) and Payments built on the Corcentric Core Framework.
On the services side, Corcentric Procurement Services includes a team of highly experienced procurement consulting services professionals, intuitive strategic sourcing technologies, and data-backed market intelligence. Together, they provide the specialized requirements to help drive the evolution of Procurement from a purely tactical function to an innovative, nuanced, and strategic unit. Regardless of an organization’s maturity level, Corcentric offers true Managed Procurement support and expertise to provide for a strategic, effective approach to spend and supply management.