PunchOut Vs. Hosted Catalogs: A Detailed Comparison of Two Catalogs
B2B organizations that use eProcurement systems commonly use PunchOut and hosted catalogs to conduct transactions with the supplier. Their main purpose is to provide easy access to the supplier’s website. However, PunchOut wins hands down when it comes to features. It has been the first choice in the B2B space and can work well to retain customers. PunchOut is a technology that connects the buyer’s eProcurement application to the supplier’s website, providing direct access to their contract catalog.
PunchOut: What Makes it Different from Hosted Catalogs?
With hosted catalogs, buyers can view the supplier’s product listings in a simple format. It is a static catalog, so the buyers can view the updates only after reloading the catalog into their procurement system. These catalogs allow buyers to search, compare products, and place orders easily. With hosted catalogs, the suppliers can display their products in the usual format that includes name, price, and text.
PunchOut catalog integration allows buyers to access and view the supplier’s catalog from within their eProcurement system. Buyers can easily ‘punchout’ from their eProcurement system to reach the supplier’s website and access the contract catalog. PunchOut establishes a direct connection between the systems, allowing buyers real-time access to inventory and product pricing.
Hosted Catalogs: Advantages
Should B2B suppliers use hosted catalogs to connect with buyers? It depends on how many products you are selling. Suppliers with small catalogs (having less than 500 products) that are not being updated frequently should select this option. These are static catalogs recommended for suppliers having small business operations.
Hosted Catalogs: Disadvantages
Hosted catalogs have very limited customization options as they have a standard format for representing products. As these catalogs are less flexible, it becomes very difficult to market these products. It is not designed to support high levels of customization which means you will have a hard time promoting your products.
No access to product pricing and availability in real-time is another drawback. Hosted catalogs are not easy to update, hence changes in catalog content are not done regularly. As a result, customers might not be viewing updated information while placing an order. There is a high probability of ordering discontinued products.
Suppliers who are frequently changing their product offerings should avoid using a hosted catalog as it has limited room for revisions. Even updating the price of a single product is a hurricane task. Also, if you are selling complex products, hosted catalogs don’t have the flexibility to represent them. For instance, configurations and bundles cannot be shown on these catalogs.
PunchOut Catalog: Advantages
B2B PunchOut catalog integration is specifically useful for suppliers who have a large inventory. When suppliers are selling thousands of products and modifying the catalog content at regular intervals, this is a good option. Updating the catalog is not a tiring process and can be done in minutes.
PunchOut catalogs display product data in real-time, so any updates in the supplier’s catalog are instantly visible in the catalog. It is a dynamic product, hence can automatically retrieve the updates from the supplier’s catalog.
The catalog comes with special features that help suppliers in marketing their products. They can create customer-specific offers and discounts to attract more sales.
Ariba, Coupa, and Oracle are some of the popular eProcurement systems used by B2B organizations with high demand for Ariba PunchOut integration. Buyers don’t have to create purchase orders manually as the process is automated. This speeds up the procurement activity, allowing sales reps to quickly process the order. Instead of spending hours managing the procurement process, buyers can complete it in a few minutes.
PunchOut is a proven way to prevent and reduce maverick spending as it allows buyers to follow their approval process. Buyers have access to pre-approved suppliers and moreover cannot view non-contract products. Coupa eProcurement users who are facing issues in implementing their purchasing procedure should use Coupa PunchOut.
The checkout flow in the presence of PunchOut technology is different from the usual one. Upon adding products to the cart, it returns to the eProcurement system. Here, the cart is sent to the manager to get approval. Once the cart gets the nod of the higher authority, a purchase order is generated and sent electronically to the supplier.
With Oracle PunchOut, you can not only sell but also let your buyers configure the products. You can offer a variety of configurations on your PunchOut-enabled websites which can have a positive impact on your business.
Conclusion
Hosted catalogs are less flexible and customizable, so if you are looking for a better alternative, go for PunchOut catalog software. It provides an efficient way for both buyers and sellers to handle their day-to-day transactions. It helps to build long-term business relationships, simplifies purchasing, and increases profitability. Offering this protocol has now become mandatory to deal with big buyers.
