What is the purpose of a PunchOut?

For some time now, PunchOut technology has been gaining momentum in ecommerce environments, including the B2B sector. But many companies are still unaware of what PunchOut is, the systems involved and how to integrate it with their supplier network.

Índice Show

What is PunchOut software?
How does B2B PunchOut work?
Advantages of PunchOut technology in B2B ecommerce
Punchout catalog overview
How do punchout catalogs work?
Punchout catalog technology options
Hosted catalogs
CIF catalogs
Punchout catalogs
Benefits of a punchout catalog for your business.
Final thoughts

What is PunchOut software?

PunchOut technology is a system that enables businesses to buy supplies directly from their supplier network. This single platform centralizes all of the suppliers’ product catalogs, offering a smooth and seamless experience for both the buyer and the supplier.

B2B punchout involves connecting a supplier’s product catalogs to the purchasing company’s procurement platform. This essentially reduces the workload for both the buying company and the supplier by removing the need to manually upload each product catalog to the buyer’s procurement platform and review it.

By automating product catalogs, PunchOut technology can provide a quicker, more agile, and cost-effective route for companies to buy from their supplier network. There is also no need for buyers to manually enter the products they want to purchase. A PunchOut system automates purchase orders, allowing large purchase volumes to be instantly processed and saving time for both the buyer and the supplier.

How does B2B PunchOut work?

While a PunchOut system can appear complex at first, the process for both buyers and suppliers is relatively straightforward. The system typically works with the following process:

The supplier uploads their product catalogs to the buyer’s procurement platform.
The buyer searches for specific products or suppliers on the platform and adds their products to the shopping cart.
The purchase order is then created and sent via PunchOut to the procurement platform for final approval from the buyer.
Once approved, the supplier is sent the final purchase order.

Advantages of PunchOut technology in B2B ecommerce

There are numerous advantages of PunchOut technology within the B2B ecommerce landscape. The convenience it provides by automating catalogs and speeding up the creation of purchase orders is one of the most obvious benefits. However, PunchOut technology is also more cost-effective than implementing and maintaining other B2B systems. The system also allows for seamless scalability, with suppliers able to be added quickly.

When it comes to product information and the buying journey, PunchOut technology can offer a huge boost to both buyers and sellers. With automated catalogs that can be updated in bulk, product information can be enriched to better inform the buying decision. Accurate and updated product data, in turn, delivers a higher level of customer satisfaction and reduces the number of returns suppliers have to process.

Product information management software (PIM) delivers PunchOut capabilities across the supplier network. Sales Layer’s PIM platform allows suppliers to manage and optimize thousands of products in one centralized hub. They can then share their product catalogs with procurement platforms, as well as their own purchasing center and other ecommerce platforms.

With this PunchOut system in place, companies can link their entire supplier network and streamline the buying and selling processes.

Discover how PIM software can help you enrich your product data and strengthen your B2B relationships. Get started with a free trial today.

When most of us first hear the term “punch out,” we usually think about punching in or out for our shift. This term originates from the days when many workers have paper timecards that they would literally punch with a hole or have stamped when they arrived for work and again when they went on lunch or left for the day.

However, there is a different punchout meaning in the procurement field. Here, we talk about a punchout catalog in the context of a procurement system. Briefly, it is a different yet intuitive way to buy things from a pre-approved supplier. Let’s take a look at this procurement tool and the benefits it can have for your company.

Punchout catalog overview

The term punchout catalog goes a long way toward explaining the significance of this tool. In a nutshell, this is a type of catalog that lists what a company has to sell, how much it costs, and whether or not the item is currently in stock. Then, when a potential buyer needs something, they can immediately see if their preferred supplier can provide the necessary items.The best thing about a punchout catalog is its linkage with a buyers CRM or procurement software. Essentially, this technology allows clients to browse a supplier catalog or website, select the desired items, then complete the order through their automated software. This means that people who use tools like ControlHub can avoid using a corporate credit card or purchasing card to buy the item. Instead, they fail at something that’s similar to an order form, get the purchase approved, and the procurement finishes as usual.

In other words, at the end of the day, a punchout catalog is a way to digitize the procurement process. It lets buyers easily compare more than one supplier catalog quickly, then placed the order with almost no paperwork. Then, it all comes down to shipping, receiving, and payment.

How do punchout catalogs work?

Punchout catalogs are basically an integration between a buyer’s procurement system and your product lineup. Usually, they leverage the power of your website and its shopping cart. When a buyer needs something, they will “punch out” of their procurement system and open your catalog. Then, they’ll be able to see your offerings as they are displayed on your website or other electronic catalog systems. As the customer sees something they need, they’ll add it to the shopping cart.Once everything is in the shopping cart, the buyer returns to their procurement system. The information from their shopping cart is immediately transferred from your website into their procurement system. From here, the system will obtain appropriate approvals and send a purchase order to your fulfillment department.

Perhaps the easiest way to think about punchout catalogs is as an electronic version of your old-fashioned catalogs. While this is also true of generic e-commerce sites, this one is a B2B equivalent. It’s like going to Staples and paying for the purchase with a corporate check or purchasing card. However, rather than visiting a bricks and mortar store and walking out with the products immediately, the buyer makes an order with the promise of paying by check or bank draft later on.

Punchout catalog technology options

Like so many other things in procurement, there are different technology options that a supplier can use to build the catalog. In other words, they can select several different types of punchout software. However, all of them work on something called the open catalog interface, or OCI. The OCI technology is embedded in both parties’ software systems so that information will transfer from one place to the other seamlessly.

For major buyers, using a punchout catalog is a must. That’s because the integration between their system and yours provides a significant convenience that helps them save time and money. However, there are a few technology options in addition to OCI. Some of them don’t require punchout software.

Hosted catalogs

These aren’t really part of punchout software, but they are away to help streamline the ordering process. Essentially, they are a CSV or Excel-based spreadsheet that lists what a supplier has to sell, and how much it costs. In other words, it’s much like the-fashioned Sears catalog. To buy items from a hosted catalog, the buyer will fill out an order form and send a purchase order. However, if something is out of stock, they won’t know in advance.

CIF catalogs

Similarly, you can publish a product catalog using the Common Interchange Format (CIF). Here, you get product descriptions rather than simply product names and prices. You can compare this somewhat to Amazon, because of the more complete representations of each product. In this case, your customer will not punch out of their procurement system but will instead do an automated order. Once again, there’s no reflection of stock numbers.

Punchout catalogs

Both the hosted and CIF catalogs are precursors to actual punchout software. That’s because this technology is the only one that interfaces between both parties computer systems before product selection has been finalized. In other words, potential buyers can be reasonably sure that an advertised item is available for purchase. Also, the whole process of approvals and document exchange is faster.

Benefits of a punchout catalog for your business.

Increasingly, punchout catalogs are an important part of the procurement ecosystem. In fact, most larger buyers are requiring punchout software for most vendors. This trend includes more than just for-profit companies. Rather, school systems, government, and even nonprofits want the convenience of punchout catalogs. As your company takes on more B2B clients, you will need to add this feature.

There are, however, benefits to punchout catalogs for both sides:

Cost savings. Using a punchout saves a lot of work, both for the buyer and the seller. The buyer saves work because all the ordering tasks are completed automatically except for product selection and approval. For sellers, there’s a lot less demand on your sales team, and orders go directly into your fulfillment software.
Increased productivity. Because there are fewer manual tasks on each side, each employee can get more done during the day.
Increased accuracy. Every time you transfer data manually from one place to another, there is a chance for clerical errors. These can cost time, money, and confusion.
Better accountability. It’s much easier to spot improper purchases and maverick spend because of the automated reports from punchout catalogs and a company’s procurement system. This way, you can correct problems before they become serious.

Final thoughts

Clearly, punchout catalogs are beneficial for buyers and suppliers alike. The automated nature of product ordering using these methods allows for better convenience, fewer errors, and overall cost savings. Similarly, companies that don’t use punchout catalogs are increasingly at a competitive disadvantage because buyers may go elsewhere. Fortunately, major procurement software options, including ControlHub, are compatible with these catalogs. Contact us today and will show you the benefits of our software tool.