PROCUREMENT 101

How to Use Source-to-Pay Systems for Category Management & Sourcing

Introduction

Strategic sourcing is only as strong as the data and tools that support it. That’s why modern procurement leaders are turning to source-to-pay (S2P) platforms not just for transactional efficiency, but to empower teams to plan better, act faster, and deliver more strategic value across categories. 

In this blog, we explore how to unlock the full value of your S2P system by embedding category management into your sourcing strategy, and how digital tools can drive transparency, consistency, and continuous improvement. 

let spend data drive the category strategy

S2P platforms provide a level of transparency that many organizations have historically struggled to achieve. When used effectively, this data can serve as the foundation for building smarter, more dynamic category plans. 

Ask yourself: Can sourcing teams access clean, categorized spend data in real time? 

The ability to separate spend data by category, region, or business unit helps identify opportunities for sourcing events and can highlight where off-contract or maverick spend is eroding value.  

measure sourcing activity post go-live

Too often, organizations go live with a new S2P platform but fail to track whether the system is truly supporting strategic sourcing goals. Start with one critical metric: What percentage of your total spend has been sourced through the platform since go-live? 

This KPI gives a clear view of adoption and effectiveness. It can also uncover areas where teams are still relying on manual processes, or where stakeholder engagement in the system is low. Ideally, this percentage should climb steadily over time as more categories, users, and suppliers are brought into scope. 

Don't neglect indirect spend

Direct categories often receive the most attention in sourcing strategies, but indirect spend represents a significant share of procurement activity and is often less controlled. An effective S2P platform should help you bring indirect categories into view and into scope. 

Key considerations: 

  • Are both direct and indirect categories visible within your spend analytics? 
  • Are sourcing teams treating indirect categories with the same rigor as direct categories? 
  • Are you engaging stakeholders across marketing, IT, facilities, and other business units? 

Digitally enabling indirect category sourcing with templated RFPs, guided buying channels, and contract visibility tools can simplify processes and increase compliance,  without overburdening your team.

Upskilling sourcing teams through the platform

Category management is a discipline that requires data fluency, market insight, and stakeholder alignment. A well-deployed S2P platform can help upskill your teams by embedding these best practices into day-to-day workflows: 

  • Automated opportunity assessments based on spend patterns
  • Collaboration tools that bring sourcing, finance, and business partners into the same process 
  • System-guided sourcing events that ensure consistency across categories 
  • Dashboards that track savings, cycle times, and sourcing throughput 

CONCLUSION

Category management shouldn’t live in spreadsheets and silos. With the right source-to-pay platform, procurement teams can connect planning, sourcing, and execution into a cohesive, data-driven strategy.

Whether you're trying to improve visibility, increase compliance, or build a stronger sourcing culture, your S2P platform should be an enabler, not a barrier. Not sure if you’re making the most of your investment? Contact Optis so we can help you assess where your platform stands today. 

Author

Carla Eboni, Partner

Connect with Carla on LinkedIn

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