Source-to-Pay in e:corg ERP: A Deep Dive into Smarter Procurement Workflows

Source-to-Pay refers to the end-to-end process of sourcing goods and services and managing the full procurement lifecycle — from supplier selection to invoice settlement. In e:corg ERP, S2P is fully integrated with planning, inventory, production, and accounting.

It covers a wide range of scenarios:

• Direct materials (raw materials used in production)

• Indirect materials (office supplies, maintenance parts)

• Services (standard contracts and ad-hoc needs)

• Subcontracted production

• Vendor-managed inventory (VMI) and consignment stock

• Returnable packaging and goods returns

1.

Procurement Planning

The S2P cycle often begins with purchasing requirements passed down from master planning. These are aligned with sales, production, or internal demand forecasts.

In e:corg ERP, planners can:

• Analyze vendor capabilities

• Evaluate stock levels and supply risks

• Create feasible purchase plans

2.

Vendor Assignment & Purchase Order Creation

The system suggests preferred vendors based on contracts, pricing, lead times, or past performance. POs can be generated:

• From forecasts and demand plans

• Based on actual sales or production needs

• Manually for one-off requirements

Terms, delivery conditions, and payment schedules are all defined within the ERP.

3.

Inbound Logistics

Once the PO is approved and sent:

• Delivery notifications can be tracked

• Goods receipts are recorded upon arrival

• Returnable packaging (if any) is managed

Inbound logistics is fully synchronized with warehouse operations and production supply.

4.

Invoice Processing & Financial Settlement

When the vendor sends an invoice, e:corg ERP matches it automatically against the PO and goods receipt. This 3-way match prevents overbilling and accelerates payment.

In complex cases (like ad-hoc services), you can process invoices directly without prior POs — ideal for one-time consulting fees, fixed asset acquisition, or bank commissions.

e:corg ERP’s flexibility allows you to handle advanced scenarios like:
✅
Subcontract Manufacturing
Send raw materials to a vendor and receive finished goods in return. The system handles:
Material tracking


Cost posting


Subcontractor invoice settlement


✅
Vendor Managed Inventory (VMI)
Vendors restock your warehouse based on pre-agreed rules. You only pay for what you consume. e:corg ERP supports:
Consumption tracking


Vendor alerts and replenishment


Automated invoice generation


✅
Consignment Procurement
Stock belongs to the vendor until you consume it. This frees up working capital while ensuring inventory availability.
✅
Returns and Packaging Redemption
If materials arrive damaged or wrong, you can initiate return workflows and process vendor credit memos. Reusable packaging can be tracked and returned or redeemed.

1.

Streamlined Operations

Procurement, warehousing, finance, and production are all connected. This eliminates duplication, delays, and miscommunication.

2.

Cost Optimization

By planning procurement against actual needs and vendor capacity, you avoid overbuying, rush fees, and emergency sourcing.

3.

Compliance and Control

Contracts, pricing, terms, and invoice validation rules are enforced system-wide. This reduces errors and ensures audit readiness.

4.

Supplier Relationship Management

Track vendor performance over time, enforce SLAs, and evaluate alternatives based on data — not guesswork.

Let’s say you’re a food manufacturer planning to scale up yogurt production in Q3. Your master plan passes purchase requirements for packaging film and milk powder into the S2P module.

• e:corg ERP checks vendor contracts and selects the best supplier for each item.

• POs are generated and sent.

• Your warehouse receives goods, and the vendor invoices you.

• Because the goods and POs matched, the invoice is cleared for payment without delay.

• A shipment of packaging arrives damaged — a return is initiated, and a credit memo is issued.

All of this happens within one system, visible to your procurement, logistics, and finance teams in real time.

Procurement is evolving from a back-office function to a strategic driver of performance. Organizations that still manage purchasing through disconnected emails, spreadsheets, or legacy systems are missing massive opportunities.

With e:corg ERP’s Source-to-Pay, you can:

• Unify procurement planning and execution

• Improve vendor collaboration

• Ensure every purchase supports your business goals

👉 Want to see how e:corg ERP can streamline your procurement process? Book a demo or talk to our implementation experts today.