sourcetocontract

Source to Contract (S2C) is an integrated procurement process that covers activities from supplier identification and market analysis through to the creation, negotiation, and execution of contracts with suppliers. The goal is to optimize the sourcing lifecycle by aligning supplier capabilities, terms, and risk with an organization’s needs.

Core stages typically include spend analysis and category strategy, supplier discovery and qualification, market engagement via RFI/RFQ/RFP, supplier evaluation and negotiation, contract drafting and approval, contract execution, and contract management. Following contract award, activities such as supplier onboarding, governance, performance monitoring, and compliance can be integrated with broader procurement functions. In many organizations, S2C decisions feed into downstream procure-to-pay (P2P) processes, such as purchase orders and invoice management.

S2C is often supported by enterprise procurement software that combines supplier information management, contract lifecycle management, e-sourcing tools, and supplier risk management. Leading providers offer S2C modules within suites from vendors like SAP Ariba, Coupa, Jaggaer, Ivalua, and Oracle.

The rationale for S2C includes achieving shorter cycle times, improved contract terms, reduced supplier risk, better spend visibility, and stronger governance. Challenges can include data quality, process fragmentation across business units, change management, and the need for clear ownership of contracts and supplier relationships.