Source to pay (S2P) is one of the many services offered by GIS International.

It’s a strategic approach to procurement, encompassing the entire procurement process within an organization, from the initial identification of needs through to the payment of suppliers.

It integrates various stages such as sourcing, contracting, purchasing, receiving, and payment into a cohesive framework.

Bringing S2P to C-Class or Tail Spend

In the S2P process, companies begin by identifying their procurement requirements, which can range from raw materials for manufacturing to professional services or IT solutions. Once the needs are determined, the company embarks on a sourcing journey to find suitable suppliers. This involves evaluating potential vendors based on criteria such as quality, price, reliability, and sustainability.

This process is typical in use for the procurement portfolio, and effective for A- and B-Class. Much less so for C-Class or Tail Spend. That’s where GIS comes in the picture.

We have been consolidating and clustering the massive amount of C-Class data for more than 2 decades.

The categorization of this data allows for the massification and concentration of the best vendors for what concerns their core categories.

S2P in close collaboration with GIS International can lead to important cost savings through various means. The main benefits rely on the strategic partnerships that have been established with the different selected “category” vendors. With these selected partners many unexplored benefits occur by massification and digitizing the entire spend per category.

A re-design of the supply chain process including inventory reduction is one of the huge savings that comes out of  the entire process. The GIS slogan “You deal with ONE, we deal with Thousands” is more than valid in such an approach.

So what are the key advantages?

S2P helps to mitigate risks related to supplier performance, quality issues, delivery delays, and compliance failures, thereby reducing the likelihood of disruptions to operations.

It also provides better data visibility and analytics, enabling companies to track key performance indicators, analyze spending patterns, and make data-driven decisions to optimize their procurement strategy.

Want to understand how adopting a source-to-pay approach can drive cost savings, improve operational efficiency, mitigate risks, and enhance supplier relationships?

Talk to GIS International, reach out to us here.