Glossary
Source-to-Contract (S2C)
What Is Source-to-Contract (S2C)?
Source-to-Contract, usually shortened to S2C, is the process that covers identifying suppliers, running sourcing events, negotiating terms, and finalizing a signed contract. Source-to-Contract (S2C) is the upstream procurement process that covers identifying and evaluating suppliers, running sourcing events, negotiating commercial terms and establishing supplier agreements or contracts. It typically precedes Procure-to-Pay (P2P), where approved purchasing transactions are executed against the supplier and commercial terms established upstream.
S2C plays an important role in procurement value and supplier governance because sourcing strategy, competitive evaluation, supplier selection and commercial terms are established during this stage. The decisions made upstream can influence pricing, supplier performance, compliance and purchasing execution later in the procurement lifecycle.
How It Works
How SAFAL Supports Source-to-Contract
SAFAL's Source-to-Contract capability connects strategic sourcing, RFx management, e-auctions and contract lifecycle management into one workflow, so negotiated terms carry through automatically into execution. Because it integrates natively with SAP, Oracle, Microsoft Dynamics and Navision, contract data stays aligned with the ERP rather than living in separate spreadsheets or standalone tools. This is particularly useful for regulated and project-driven sectors, such as EPC, oil and gas and chemicals, where supplier qualification and multi-tier approvals are common.
Frequently Asked Questions
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