Source To Contract (S2C) Definition

In business, ‘source to contract’ (S2C) is the process of identifying and procuring the goods and services a company needs to operate. The S2C process begins with the identification of what a company needs, followed by the development of specifications for those goods or services. Once the specifications are created, companies issue a request for proposal (RFP) to potential suppliers. The RFP spells out the company’s needs and asks suppliers to submit bids. The company then evaluates the bids and selects a supplier. Finally, the company enters into a contract with the supplier.

The goal of S2C is to procure goods and services in a way that meets the company’s needs at the best possible price. To do this, companies must have a clear understanding of their own needs and develop specs that accurately reflect those needs. They also need to evaluate bids carefully to ensure they are getting the best value for their money.