Difference between revisions of "S2P"

Latest revision as of 21:35, 20 August 2020

The Source-to-Pay cycle is a term describing the collection of processes a company has implemented between placing a purchase order or similar means of communicating the purchase of goods or services and the payment for these goods or services. The span of processes involved depends on the supply chain configuration and process strategy, but is typically limited to S processes*:

• Replenishment of purchased materials, products, goods, or services: S1 Source-to-Replenish
• Special order or Source-to-Order materials, products, goods or services: S2 Source-to-Order
• Engineer-to-Order parts, materials, products, goods or services: S3 Source-to-Engineering-Order

Similarly, there is a Source-to-Pay cycle for Returns, Reverse Logistics, and Circular business models:

• Returns of materials, products, or goods: S4 Source Returns

Notes

* The processes listed are incomplete as the final step in the Source-to-Pay cycle is the actual disbursement of funds. This process is a Financial (Treasury) process outside of the scope of Source.

Alternative names include: Purchase-to-Pay, Procure-to-Pay.

See also: Forecast-to-Plan, Source-to-Pay, Plan-to-Produce, Plan-to-Move, Inquiry-to-Order, Order-to-Cash, Record-to-Report, Acquire-to-Retire, Risk-to-Assurance and Hire-to-Separation Make-to-Stock Make-to-Order Engineer-to-Order