Source-to-contract is the span from identifying and structuring a sourcing need through market engagement, evaluation, negotiation, award, contract review, approval, and execution. Organizations may define its boundaries differently. The model emphasizes supplier selection and commercial agreement, while later ordering, receiving, invoice, and payment activities usually sit in a broader source-to-pay lifecycle.
In plain English
It covers sourcing a need and reaching an approved agreement with the selected supplier.
Illustrative example
At Northstar Industrial Systems, a logistics requirement moves through an RFP, evaluation, negotiation, award approval, contract review, and signature before operational ordering begins.
- Related terms
- Strategic sourcing; Contract lifecycle management; Source-to-pay; RFx
- Lifecycle stages
- Source; Approve; Award
- Stakeholders
- Procurement; Compliance and Legal; Supplier; Finance