In the current scenario wherein enterprises are strategizing hard to achieve targets for business growth, the need for managing their spend becomes crucial. Even in the corporate world, the general saying stands true that “A Penny Saved is A Penny Earned”. The e-procurement systems play a vital role in achieving the target to minimize the expense for large organizations by capitalizing the aptitude of eCommerce demesne.
Supplier exchange or e-procurement through EDI (Electronic Data Interchange) handles the value chain of the process with the transparency and the optimization of the resources and managing the complete requirement to pay cycle. Many key players are there in the market for providing such advanced multifunctional application for the purpose. The buyer-supplier correlation is crucial for the success of any such application. Punchout acts as a hub for an e-procurement system of the buyer and the eCommerce store of the suppliers.
Understanding the Punchout
Punchout helps a buyer to make purchases from a vendor within buyer’s own procurement application or hosted e-procurement system. It basically takes the seller’s product catalog and puts it inside the buyer’s e-procurement system.
Punchout works within Spend Management Systems. Rather than directly viewing the seller’s eCommerce catalog, the buyer agent enters the catalog through an e-procurement system. (such as Ariba, Oracle, SAP OCI and some of the better-known e-procurement platforms).
Due to the Punchout integration
, the seller’s eCommerce website is visible and navigable from within the e-procurement system. Just like a traditional eCommerce transaction, the buyer browses and selects items from the website.
Integration with eCommerce Stores
The enterprise eCommerce solution
which intent to simplify the eCommerce, comes with the feature to easily enable the stores as Punchout capable. Punchout Integration can be done using CXML or OCI protocols. But the better option is to get a Punchout catalog enabled online store rather than having a Punchout catalog.
Punchout feature provides an easy-to-adapt gateway solution for suppliers to integrate Punchout Catalog capabilities within their existing build, plus plug-n-play solutions for popular eCommerce platforms. It offers the most innovative, robust and affordable solutions with complete flexibility for suppliers and customizable buyer experiences.
Simplify the Purchasing
With direct access to the vendor catalogs in their own e-procurement system, the procurement admins and their users can adore their settled prices with pre-registered vendors of their choice. The purchase orders can directly be generated through the system itself with no need for the buyer to make the payment on the merchant’s store.
Centralization of the Process
Improved spend management and purchase unification can be achieved as all the catalogs are centralized within a single application.
Punchout benefits both buyer and supplier with hassle-free purchasing by making the whole procurement process automated. It helps to explore new markets and allows to sell to a large number of buyers which is the need of the hour in eCommerce. It also helps in improving the buying decision of any organization by providing better control over the buying of products and services for an organization.