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Procure to pay and source to pay: what does it mean?

Procure to pay and source to pay can be used to set up the purchasing process of organizations more efficiently. This is because organizations often find that this process can be optimized in various ways. Optimization can save an organization a lot of time and money, so it has many advantages to set this in motion. But how is this done exactly? And what is the difference between procure to pay and source to pay?

What does your supplier database look like?

It is common in organizations for the purchasing department to do business with many different suppliers. After all, you want to get the best deal from each supplier. Yet this is an unnecessary amount of work. Each supplier has its own payment term, invoice and contact person. When the purchasing department of an organization has contact with hundreds of different suppliers, it costs a lot of time and money. It may therefore be wise to reduce this supplier database to 1 supplier. So that an organization only has one contact person and therefore also one invoice with one payment term.

What is source to pay?

Source to pay is used to set up the purchasing process more efficiently. The entire procurement process is examined from end to end, so that each phase can be examined to see what can be done more efficiently. This end-to-end approach means from beginning to end, from sourcing to payment. Source to pay provides a 360-degree view of all performance and expenditure. Want to know more about source to pay? Read more here:

What is procure to pay?

By means of procure to pay, it is also possible to set up the procurement process more efficiently, but procure to pay is a lot more limited. This mainly involves looking at the purchased goods and what can be improved in that phase.

With source to pay you get insight into the entire procurement process and with procure to pay you get insight into a part of it. You can read more about procure to pay here: