By means of source to pay, an organization’s purchasing process can be organized more efficiently. This involves looking at the entire purchasing process. A lot of money can be saved on this part. If the process is organized more efficiently, more can be achieved in a shorter time. But what exactly is source-to-pay? And what does it have to do with procure to pay? Read more about this in this blog.
What is source to pay?
With source to pay, the purchasing process of companies can be improved, or in other words can be organized more efficiently. This applies to the entire purchasing process from sourcing to payment. What often happens in companies is that the purchasing and finance department work dependent on each other, while it is better if these departments work together. After all, they have a lot in common. With source to pay you actually ensure that there is more synergy between the two departments. Source to pay is a supplement to procure to pay. With procure to pay, we only look at which goods have been purchased and what can be improved here. With source to pay this is more extensive, because there the entire process from ‘end to end’ is looked at.
What are the advantages?
When using the source to pay service, the market is consulted on the basis of the specification provided by the organization and a supplier is selected based on the best commercial conditions. This means that the supplier base is reduced. This brings many advantages, because you only have one point of contact, one invoice and therefore only one payment term. This relieves the burden on the financial, logistics and purchasing departments. In addition, it also saves a lot of manual actions and paperwork.