Source-to-Pay for Manufacturing& Production: Control over Purchasing from Order to Payment
Production companies and machine builders operate in a complex environment: multiple entities, international suppliers, critical production chains and growing pressure on cost control. A disrupted purchasing process not only affects the finance department, it affects the production line itself, the cost of your end product and increasingly also your sustainability report. As an industrial company, how do you ensure a well-functioning Source-to-Pay process that matches your ERP, your suppliers and your organizational structure? Even if you are dealing with foreign locations, outsourcing or new European legislation?
Why Source-to-Pay is different in manufacturing
Industrial companies and manufacturing companies work with a purchasing landscape that is fundamentally different from other sectors. Procurement is at the heart of the operation here: raw materials, component suppliers, technical services, OEM parts and indirect purchases are intertwined. The Procurement department works closely with planning, production and finance, but the processes and systems do not always match each other.
In addition, many industrial companies are active in multiple entities or work with international supplier networks, including production locations or suppliers outside Europe. This places high demands on purchase orders, order confirmations, contract management and invoice processing. In addition, international e-invoicing obligations vary significantly from country to country. Think of Peppol in the Netherlands and Belgium, the SDI network in Italy or the specific B2B e-invoicing mandate in Germany that took effect in 2025. Those who buy from or sell to foreign branches must connect their systems and processes to this.
ERP systems such as SAP S/4HANA, MS Dynamics 365 F&O, Infor LN/BAAN and Oracle by no means always offer all the P2P functionality that is needed. The gap between what the ERP can do and what the organization actually needs is structurally wider in the manufacturing industry than in other sectors.
We know the purchasing challenges of the manufacturing industry from the inside out. From machine building to food production.
Three purchasing challenges that every manufacturing company recognizes
At manufacturing and production companies, we see these three challenges structurally recurring:
“The consultants have in-depth knowledge of P2P Best Practices and know the software solution market inside out. They delivered exactly what we were looking for. But what we also noticed: they are empathetic and have an eye for people. Where necessary, they made valuable interventions that noticeably improved cooperation within our team.”
Our approach for industry and manufacturing companies
- Requirements analysis for Procurement, Finance, Planning and IT jointly
- Advice about the spend split: what do you control in the ERP, what in the S2P tool?
- Procurement channel strategy for direct and indirect purchasing, including tail spend
- Assistance with P2P or S2P software selection that connects to existing ERP
- Approach for international locations, outsourcing and cross-border supplier relationships
- Compliance advice on international e-invoicing obligations (Peppol, SDI, B2B e-invoicing by country)
- Setting up CSRD-relevant purchasing data: carbon footprint by category and supplier
- Exploring AI applications in the purchasing process: automation, spend analysis and risk monitoring
- Training and adoption for buyers, financial staff and buyers
Organizations such as Royal Kaak, Unica, Lely and AVR work with us to make their purchasing and payment processes future-proof, even during complex ERP processes.
Our processes
What does S2P optimization provide for industry and production companies?
Employees from the various departments work from one process, with clear responsibilities and shared insight into orders, obligations and invoices. This reduces errors, speeds up lead times and strengthens supplier relationships. Without jeopardizing production continuity.
- Full connection between P2P processes and existing ERP system
- Less manual work on order confirmations, receipts and invoice processing
- Faster and more accurate 3-way matching (purchase order, receipt, invoice)
- More control over spend, obligations and supplier contracts
- More efficient cooperation between Procurement, Finance and Planning
- Proven purchasing data for CSRD reporting and carbon footprint per supplier
- Compliant with international e-invoicing obligations, including for foreign entities
- Future-proof process that grows with expansion to multiple entities or markets.
Let's connect
We advise production companies, machine builders and industrial companies on how to optimize their Source-to-Pay processes. Schedule an informal consultation with Ewald, S2P specialist with in-depth knowledge of the manufacturing industry, and find out where your opportunities lie.
