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Source to pay, what is it and how to optimize it?

With the help of a source to pay process you can optimize the entire purchasing process. Many companies can save a lot of money here. Using the purchasing process more efficiently can be done much more efficiently at many companies. If it is more efficient, this can save a lot of money and therefore more can be achieved in a shorter time. But what exactly does the source to pay process entail? And how can you optimize this? Read it in this blog.

What is it?

Source to pay services help organizations to set up their purchasing process efficiently. This applies to the entire process from sourcing to payment. It often happens that the finance and purchasing departments work independently of each other, while the departments have a lot to do with each other. With source to pay you create more synergy between these two departments. For example, the supplier base can be reduced, which means that you do not have all kinds of different suppliers, but you only have one supplier. This means that there is more overview and therefore only one contact person. That saves time and therefore money. This also reduces paperwork and manual actions.

How can you optimize the source to pay process?

By means of the source to pay process, the market is consulted on the basis of the specification that has been provided to your organization. A supplier is then selected based on the best commercial conditions. The advantages of this are that in addition to one point of contact, you will also only have one invoice and therefore also one payment term. That saves a lot of work. This mainly relieves the logistics, financial and purchasing department. Source to pay is an addition to the procure to pay process, with procure to pay the analysis is limited to an analysis of the purchase of the goods.