Why PunchOut Integration is Needed for B2B Buyers?
B2B buyers are looking for a faster and more efficient way to manage their procurement process. Well, as a supplier you can simplify their purchasing by incorporating PunchOut into your business.
What is PunchOut?
PunchOut is a protocol that integrates the supplier’s B2B website with the buyer’s procurement system. PunchOut integration allows buyers to conduct business transactions from within the confines of their procurement system.
Sometimes PunchOut is also referred to as an electronic catalog that allows B2B buyers direct access to products that have been negotiated with the supplier.
As a supplier, you can connect your eCommerce platform to a myriad of procurement systems including Ariba, Coupa, Oracle, JD Edwards, PeopleSoft, SAP, etc. PunchOut solution offered by some companies can integrate with over 70 different procurement applications.
Irrespective of the type of eCommerce platform you are using, be it SaaS, open-source, or on-premise, you can easily integrate your online store with any procurement system with PunchOut.
When Choosing a PunchOut Supplier…
B2B buyers have to be very careful when choosing a PunchOut supplier. For instance, find out what type of data transfer protocol the supplier is offering for communication. Most suppliers provide cXML PunchOut, which is compatible with the Ariba procurement system.
SAP procurement systems use OCI (open catalog interface) format to communicate with external sites. Ariba procurement applications cannot function with OCI data transfer protocol. So when picking a PunchOut supplier, check whether the supplier’s data transfer protocol is compatible with your procurement system.
Benefits of PunchOut: From the Buyer’s Perspective
One of the biggest advantages of PunchOut is that it allows B2B buyers to launch an external site within their procurement system. Moreover, it streamlines the purchasing workflow of buyers. It helps to reduce procurement costs and empowers buyers to have more control over workflows.
- Simplify Spend Management
B2B PunchOut provides an easy way to tackle spend management challenges faced by large buyers. For instance, issues such as lack of centralized control and maverick spend can be easily resolved using PunchOut.
With PunchOut, ever purchase made is in accordance with the pre-approved contract. This is because PunchOut users have access only to contract products. So whenever the buyer clicks the PunchOut link, he can view his negotiated contract catalog only. Contract compliance is maintained at all times.
There is no need to waste time browsing through non-contract products. Thus, PunchOut catalog software optimizes the process of searching for products. Issues such as unauthorized spending will not arise with PunchOut.
2. Get Real-Time Updates
Real-time price and availability is another very important benefit of using PunchOut. Any changes in the supplier catalog are instantly visible to the buyer.
For instance, if the supplier discontinues specific products or changes product pricing, the buyer does not have to reload the catalog in its procurement system. No question of accessing outdated or incorrect supplier information.
Benefits of PunchOut: From the Supplier’s Perspective
As a B2B supplier, what is the biggest challenge you face while running your business? Well, getting business from B2B buyers. Right? An easy way to resolve this issue would be to offer PunchOut-enabled sites.
- Win Big B2B Clients
PunchOut system acts like a ‘lead magnet’ to attract large buyers to your website. It is the best tool to connect and do business with B2B buyers. Promote yourself as a PunchOut supplier and rest assured your business reach will increase exponentially in no time.
2. Sell Product Configurations
Also, in the absence of PunchOut, you simply cannot sell product configurations. The reason is simple; the CIF catalog doesn’t have any provision to represent configurations.
Implement PunchOut and you will face no issues in displaying a wide range of configurations on your buyer’s catalog. Showcasing different product configurations will automatically lead to an increase in sales. PunchOut can easily handle complex ordering process associated with configurations.
Recent surveys have shown that most B2B buyers prefer suppliers that can provide PunchOut-enabled sites. Hence offering PunchOut maximizes your chances of winning more B2B buyers.
With PunchOut, buyers get access to customized content followed by timely content updates. Thus, suppliers that incorporate PunchOut into their business can provide a personalized shopping experience to their buyers. This can go a long way in strengthening relationships with buyers.
On the whole, when it comes to connecting online shopping carts with procurement systems, you can rely on PunchOut. It provides an Amazon-like shopping experience, reduces the cost of transactions, and provides access to accurate information.
