Operators

Source-to-Pay

byStepan Balaban
May 30, 2025

Source-to-Pay

Source-to-pay (S2P) refers to the end-to-end process that begins with sourcing suppliers and ends with payment for goods and services. In the oil and gas sector, this involves identifying and evaluating vendors, negotiating contracts, managing procurement and processing invoices. The goal is to streamline operations, enhance collaboration across supply chain, operations, finance and accounting teams, and improve capital efficiency.
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Frequently Asked Questions

What are the benefits of S2P?

The S2P process offers numerous benefits, including cost savings through competitive bidding, improved compliance with standardized workflows, reduced supply chain risks, enhanced collaboration between procurement teams and suppliers, increased efficiency via automation, data-driven decision-making with comprehensive spend analytics, and continuous supplier performance management.

How is the S2P process beneficial for energy companies?

These benefits help energy operators manage capital expenditures more effectively and lower operational expenditures, ultimately leading to improved profitability and operational performance.

How can a S2P process be implemented effectively?

  • Assess current processes: Identify areas for improvement.
  • Define objectives: Set clear goals for implementation.
  • Select technology: Choose an appropriate S2P platform.
  • Engage stakeholders: Ensure collaboration and buy-in.
  • Standardize workflows: Develop consistent processes.
  • Train employees: Provide comprehensive training.
  • Monitor and optimize: Continuously improve performance.

What are common challenges in S2P implementation?

Common challenges in S2P implementation include resistance to change, scope creep, data quality issues, integration difficulties and lack of executive support.

 

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