Source-to-Pay: Optimizing your procurement with a marketplace
- Arnaud
- 8 minutes reading
Source-to-Pay (S2P) is an integrated process that encompasses every step from supplier selection to payment management, enabling complete procurement optimization and improved collaboration with business partners. Defining S2P means understanding that it is not merely a transactional process but a true strategy that combines strategic sourcing, negotiation, contracting, order execution, and automated invoice settlement.
Its comprehensive and proactive approach incorporates the early identification of needs and the implementation of procurement strategies, fostering enhanced risk management and reinforced regulatory compliance. According to Fortune Business Insights, the global S2P solutions market was valued at $2.07 billion in 2022 and is projected to reach $70.72 billion by 2030, with a CAGR of 55.7%. And what if we took it one step further by rethinking the traditional model through the integration of a marketplace? This transition toward a scalable solution paves the way for an almost unlimited extension of the supplier offer, thereby energizing the supply chain and unlocking innovative possibilities to optimize the entire procurement process.
1. The essential distinctions between Source-to-Pay and Procure-to-Pay
2. The technological and operational advantages of Source-to-Pay
3. The added value of a marketplace solution in Source-to-Pay
4. Optimization and integration for simplified management
5. Why choose Origami Marketplace?
6. Frequently asked questions
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1. The essential distinctions between Source-to-Pay and Procure-to-Pay
Source-to-Pay differs from Procure-to-Pay in its broader and more strategic scope. While P2P focuses on executing purchases and tracking orders until payment, S2P also integrates the sourcing phase by identifying and evaluating suppliers even before an order is placed. This preliminary step optimizes negotiations and secures supply chains, thereby reducing logistics-related risks.
The S2P process unfolds over seven key steps: needs identification, supplier selection, negotiation of terms, contracting, ordering, receipt, and payment.
Each step is supported by digital tools that facilitate automation and real-time monitoring. Implementing an S2P system can reduce procurement costs by 10 to 15%. This level of precision and operational efficiency translates into enhanced collaboration between internal teams and external partners, ensuring increased transparency and optimized responsiveness. Moreover, improved supplier risk management is achieved through continuous performance analysis and interactive dashboards that support decision-making.
For more insights on the differences, refer to our article: Procure-to-Pay, Purchase-to-Pay or Source-to-Pay: A complete guide.
2. The technological and operational advantages of Source-to-Pay
Implementing a Source-to-Pay solution offers a multitude of benefits on both operational and strategic fronts. The automation of processes significantly reduces manual errors and accelerates order processing, ensuring that payment flows are automatically reconciled.
With business intelligence tools, companies benefit from real-time monitoring of their performance indicators, enabling them to adapt their strategies based on the gathered data. Seamless integration with systems such as ERP, PIM, and CMS ensures internal process harmonization, eliminating information silos and promoting optimal inter-departmental communication. Adopting an evolving taxonomy also allows for the flexible expansion of the supplier offer, addressing market trends and regulatory requirements. This adaptability enhances competitiveness while improving risk management and compliance with current standards.
Furthermore, Market Research Future anticipates that the S2P market will grow from $6.85 billion in 2025 to $17.11 billion in 2034 (a CAGR of 10.71%), underscoring the strong drive towards the complete digitalization of the procurement cycle.
Why adopt a marketplace solution to energize your S2P? Because it is the ideal strategic lever to interconnect your systems, expand your supplier network, and automate your processes, thereby boosting agility and performance. This evolving solution is designed to anticipate and follow market trends, ensuring that you remain competitive in an ever-changing environment.
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3. The added value of a marketplace solution in Source-to-Pay
Within a Source-to-Pay strategy, implementing a marketplace solution is the optimal choice to energize the entire procurement process. A marketplace offers an unlimited extension of the supplier offer, granting companies access to an extensive supplier network and a flexible taxonomy that adapts to market evolutions.
The marketplace model enhances the visibility of supplier offers (pricing, stock levels) by managing multiple offers, allowing several vendors to propose the same product. With the Buy Box feature, offers compete based on criteria such as attractive prices, fast shipping, and customer reviews, as determined by the platform administrators. Additionally, each supplier can set multiple pricing options for the same product, fixed pricing, quotes (RFQ), etc.
Highlighting various price propositions accelerates purchasing decisions or triggers the initiation of a negotiation process (RFQ, etc.). Moreover, integrating supplier catalogs is simplified through solutions such as punchout, which provides a direct connection with ERP, CMS, or other systems.
Not all Source-to-Pay solutions offer punchout integration and generally have more limited catalog integration capabilities. In contrast, a marketplace solution enables an almost unlimited connection of catalogs and formats, thereby enhancing the offer and competitiveness.
Feedback from major companies that have adopted a marketplace model for their procurement strategies demonstrates increased internal productivity, significant reductions in manual tasks, and faster strategic decision-making thanks in part to automated accounting reconciliation and performance monitoring tools for suppliers. Additionally, the marketplace model generates extra revenue through commissions on supplier sales, which helps offset the platform costs.
In summary, the marketplace solution is a strategic lever that simplifies the lives of Chief Financial Officers (CFOs) while creating significant added value across all business and decision-making processes.
4. Optimization and integration for simplified management
4.1. Streamlined and accelerated integration
The solution offers a wide range of integration possibilities to connect your internal systems and external partners:
- Multiple connectivity options: Easy integration with CMS, ERP, PIM via APIs or file exchanges (local or remote).
- Punchout method: Enables direct connection to your system (ERP or CMS) without redirection, providing real-time access to product information and available offers. Flexible
- Supplier onboarding: Choose an open platform (accelerates the online launch of offers by rapidly expanding the supplier network) or a closed platform (ensures rigorous selection to maintain high quality and compliance).
These options guarantee reliable data centralization while simplifying the comparison and management of offers.
4.2. Simplified and automated management for administrators and buyers
The automation of the purchasing journey also contributes to flawless operational management:
- Automatic payment reconciliation: Eliminates manual checks between purchase orders and supplier invoices, ensuring immediate data alignment, reducing processing times, and minimizing error risks.
- Customizable workflows: Tailor-made automation rules define precise actions at every stage of the procurement process, simplifying the purchasing journey by standardizing approvals and facilitating order execution.
Ready to turn your B2B, B2C, or C2C marketplace vision into reality?
To help you develop the best platform possible, we’ve gathered all the must-have features, key technical considerations, and best practices in a comprehensive document:
Download the Specifications template 🗒
Perfect for smaller or medium-scale projects without a formal purchasing process. It will help you outline your requirements effectively and streamline your selection process.
Download the Request for Proposal template 📒
Ideal for larger, more complex marketplace projects with a formal purchasing department or advanced procurement policies.
5. Why choose Origami Marketplace?
In the face of increasingly complex Source-to-Pay processes, relying on high-performance, scalable technological solutions is crucial to maintaining competitiveness.
Origami Marketplace stands out as a premier partner by offering a complete marketplace solution that integrates all the functionalities necessary for optimized procurement management. With an unlimited extension of the supplier offer, seamless system integration, and advanced automation, the solution significantly simplifies the lives of CFOs while generating substantial added value. The benefits include reduced processing times, increased productivity, improved compliance, and optimized supplier risk management.
By entrusting the digital transformation of their supply chain to a qualified provider such as Origami Marketplace, companies receive tailored support and expert guidance to successfully navigate their transition. Investing in an S2P marketplace solution is not merely a technological choice it is a strategic lever for enhanced performance and innovation.
Frequently asked questions:
An S2P solution offers several benefits, including:
- A significant reduction in procurement process costs, minimizing errors and accelerating order processing.
- Enhanced visibility and real-time performance tracking through business intelligence tools.
- Improved risk management and strengthened compliance with regulatory standards.
Source-to-Pay solutions integrate technologies such as:
- Artificial Intelligence (AI): to optimize purchasing forecasts and enhance supplier selection.
- Blockchain: to secure transactions and ensure contract integrity.
- Punchout Systems: enabling real-time synchronization with ERP and other systems.
- Customizable Interfaces: to offer an intuitive user experience and foster adoption.
How does the marketplace serve Source-to-Pay (S2P)?
Source-to-Pay is a strategic approach that integrates all procurement steps from needs identification to payment management. By combining strategic sourcing, negotiation, and process automation, it not only reduces costs and risks but also optimizes supplier collaboration. Furthermore, integrating a marketplace offers an almost unlimited expansion of the supplier offer, enhances competitiveness, and simplifies the supply chain.
