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What Is Source to Contract (S2C)?

What Is Source to Contract (S2C)?

Source to Contract (S2C) is a process that helps organizations streamline their procurement operations. It’s a term used to describe the process of acquiring goods and services from vendors, managing contracts throughout the course of the deal, and ultimately settling the agreement between both parties. In this blog post, we will discuss what Source to Contract means in detail, how it works and how organizations can benefit from using it. We’ll also explore the various tools and technologies available to help companies automate their S2C processes.

What is Source to Contract (S2C)?

The term “source to contract” (S2C) refers to the process of procuring goods and services from external vendors. It encompasses all activities from the identification of potential suppliers through to the awarding of contracts and purchase orders.

The S2C process is a critical part of any organization’s procurement function. It helps to ensure that goods and services are sourced from reputable suppliers at the best possible price. A well-run S2C process can also help to mitigate risks associated with supplier relationships.

There are a number of different approaches that can be taken to source to contract. Organizations may choose to use traditional methods such as Request for Quotation (RFQ) or Request for Proposal (RFP). Alternatively, they may opt for more modern approaches such as e-sourcing or reverse auctions.

Whichever approach is taken, the aim is always the same: to secure the best possible terms for the organization while minimizing risks.

What are the benefits of S2C?

There are many benefits of source to contract (S2C). First, it can help reduce the overall cost of procurement by streamlining the process and making it more efficient. Second, it can help improve compliance with government regulations by providing a clear and concise framework for how contracts should be awarded. Third, it can help improve communication between buyers and sellers by establishing a clear timeline and process for contract negotiation. Finally, S2C can help reduce the risk of fraud and corruption in the procurement process by increasing transparency and visibility into the contracting process.

How does S2C work?

Source to Contract, or S2C, is a process whereby an organization contracts with another organization for the procurement of goods and/or services. The S2C process typically involves four main stages: sourcing, tendering, contracting, and post-contract management.

Sourcing is the first stage of the S2C process and involves identifying potential suppliers that can provide the goods and/or services required by the organization. This stage also includes assessing supplier capabilities and capacity, as well as negotiating prices and terms.

Tendering is the second stage of the S2C process and involves issuing a Request for Proposal (RFP) to potential suppliers. The RFP sets out the organization’s requirements in detail and invited suppliers to submit proposals outlining how they would meet those requirements.

Contracting is the third stage of the S2C process and involves selecting a supplier based on their proposal and negotiating a contract with them. Once a contract has been agreed upon, both parties will sign it and it will become legally binding.

The final stage of the S2C process is post-contract management. This stage involves monitoring supplier performance against the terms of the contract, as well as managing any changes or disputes that may arise.

What are the challenges of S2C?

There are many challenges when it comes to source-to-contract management. One of the most difficult aspects is trying to keep track of all the different contracts that a company has in place with its suppliers. This can be a daunting task, especially for larger companies with hundreds or even thousands of suppliers.

Another challenge is trying to standardize the contract management process across different departments within a company. Each department may have its own way of doing things, which can make it difficult to get everyone on the same page.

Finally, another common challenge is dealing with contract changes. Suppliers may need to make changes to their contracts for various reasons, and it can be tough to keep track of all the different versions of a contract. This can lead to confusion and errors down the line.


Source to Contract (S2C) is an important part of any organization’s purchasing process. It helps organizations streamline their procurement processes in order to achieve greater efficiency and cost savings – both key factors in maintaining profitability. By implementing a standardized S2C solution, companies can gain visibility into their entire sourcing, contracting and negotiation cycles, allowing them to make more informed decisions faster and drive down costs. With the right system in place, businesses can optimize the end-to-end source to contract cycle so that they are getting the best possible value for their investments.

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