- eProcurement & punchout
- Despite predictions of the U.S. “soft-landing” instead of entering a recession in 2024, businesses understandably remain cautious with their budgets.
- Kevin Kazenmayer
- -
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(Draft Duplicate) Foundational Guide: Punchout
Welcome to our overview on eProcurement and Punchout in B2B ecommerce. Learn and discover the latest resources and updates on eProcurement software, news and insights.
Table of contents
PunchOut is a technology that streamlines the procurement process in B2B transactions. It allows buyers to access a supplier’s online catalog directly from their own procurement system.
This direct access enables buyers to browse and select products, add them to a shopping cart, and then seamlessly transfer the cart back to their procurement system for approval and order processing.
The integration between the buyer’s procurement system and the supplier’s eCommerce platform is what sets PunchOut apart from traditional online shopping.
The Evolution of PunchOut Technology
The journey of PunchOut technology began in the late 1990s, initially as a solution for large corporations with custom-built systems.
Over time, the development of standardized protocols such as cXML (Commerce eXtensible Markup Language) and OCI (Open Catalog Interface) has democratized PunchOut technology, making it accessible to a broader range of businesses.
Today, PunchOut is an integral part of B2B eCommerce, continually evolving to meet the demands of a dynamic digital landscape.
The Advantages of PunchOut
PunchOut technology offers significant benefits for both buyers and suppliers:
- For Suppliers:
- Increased eCommerce revenue
- Reduced cart abandonment rates
- Improved customer experience by offering buying organizations real-time, accurate data on negotiated prices and inventory
- Increased brand recognition and visibility via PunchOut integration
- Broadened customer exposure to new products
- Enhanced order accuracy, which ensures orders are received with valid information to smooth the supplier order fulfillment process
- For Buyers:
- Reduced transaction costs through automation and simplified workflows
- Improved shopping experience through integrated and personalized eCommerce
- Enhanced productivity for procurement professionals
- Accelerated transaction speed with reduced purchase cycle times
- Reduced rogue spending
Key Components of PunchOut Systems
A typical PunchOut system involves three main components:
- Buyer’s eProcurement Platform: This is where the purchasing process begins and ends. The platform manages purchase orders, approvals, and overall procurement workflows.
- Supplier’s eCommerce Site: This is where the buyer browses and selects products. The site needs to be PunchOut-enabled to communicate with the buyer’s procurement system.
- PunchOut Platform: This acts as a bridge between the buyer’s procurement system and the suuplier’s eCommerce platform, facilitating the exchange of information using protocols like cXML or OCI.
Summary
PunchOut technology has transformed B2B eCommerce by providing a more efficient and integrated procurement process.
As we delve deeper into this foundational guide, we will explore the technical details, implementation best practices, and the future outlook of PunchOut technology. This knowledge will empower you to leverage PunchOut effectively in your B2B transactions.
A PunchOut catalog is an online product catalog that is integrated with a buyer’s eProcurement system.
Unlike traditional static catalogs, PunchOut catalogs are dynamic and provide real-time access to the supplier’s product information, pricing, and availability.
When a buyer “punches out” to a supplier’s catalog, they can browse and select products as if they were shopping on the supplier’s eCommerce site, but with the added benefit of their procurement system’s controls and workflows.
Types of PunchOut Catalogs
PunchOut catalogs can be categorized based on the protocols they use for communication between the buyer’s procurement system and the supplier’s eCommerce platform:
- cXML (Commerce eXtensible Markup Language): A widely used standard for exchanging eCommerce and electronic business information.
- OCI (Open Catalog Interface): Developed by SAP, OCI is commonly used for integration with SAP’s eProcurement systems.
There are other formats and protocols, but cXML and OCI are the most prevalent in a PunchOut catalog integration.
Differences Between PunchOut Catalogs and Traditional Catalogs
The key differences between PunchOut catalogs and traditional static catalogs include:
- Dynamic Content: PunchOut catalogs provide real-time access to product information, ensuring that buyers see the most up-to-date prices and availability.
- Personalization: PunchOut catalogs can be customized to display specific products or pricing based on the buyer’s contract or preferences.
- Procurement System Integration: PunchOut catalogs integrate seamlessly with the buyer’s procurement system, allowing for a streamlined purchasing process that adheres to the organization’s procurement policies.
Benefits of Using PunchOut Catalogs
Supplier benefits of a PunchOut catalog:
Offering a PunchOut catalog enables suppliers to meet buyer requests for eProcurement integration, resulting in wallet share gain and increased revenue from new and existing customers.
Additional benefits of PunchOut-enabled eCommerce include:
- Improved customer experience by offering buying organizations real-time, accurate data on negotiated prices and inventory
- Increased brand recognition and visibility via PunchOut integration
- Broadened customer exposure to new products
- Enhanced order accuracy, which ensures orders are received with valid information to smooth the supplier order fulfillment process
Buyer benefits of a PunchOut catalog:
Buyers adopt modern procurement systems to streamline, centralize and better manage purchasing. PunchOut catalogs allow buyers to take full advantage of their platform’s capabilities while reducing manual rekeying, increasing data transparency and eliminating procurement errors.
The advantages of PunchOut-enabled procurement processes include:
- Reduced transaction costs through automation and simplified workflows
- Improved shopping experience through integrated and personalized eCommerce
- Enhanced productivity for procurement professionals
- Accelerated transaction speed with reduced purchase cycle times
- Reduced rogue spending
Challenges and Considerations
While PunchOut catalogs offer many advantages, there are also challenges to consider:
- Integration Complexity: The initial setup and integration of PunchOut catalogs can be complex, requiring coordination between the buyer’s and supplier’s technical teams.
- Maintenance: Keeping the catalog up-to-date and ensuring seamless integration requires ongoing maintenance and support.
- Compatibility: Ensuring compatibility between different eProcurement systems and eCommerce platforms can be a challenge.
Summary
PunchOut catalogs are a crucial component of modern B2B eCommerce, offering dynamic, personalized, and integrated shopping experiences for buyers.
In the next post, we will explore the PunchOut process in detail, shedding light on the technicalities and best practices that ensure a seamless integration between buyers’ eProcurement systems and suppliers’ eCommerce platforms.
The PunchOut process is a series of steps that enables the seamless flow of purchasing documents and data between a buyer’s eProcurement system and a supplier’s eCommerce platform.
Here’s a typical PunchOut process flow:
- Buyer accesses the eProcurement system and searches or selects an approved supplier’s logo.
- Buyer is routed into the supplier’s eCommerce system to view the correct product offerings, prices and inventory levels.
- Buyer adds the items to their cart.
- When they have finished shopping, instead of checking out, the buyer transfers their cart data from the supplier’s eCommerce system into their eProcurement system.
- The eProcurement system creates a purchase requisition with the transferred cart data.
- The purchase requisition is routed internally for approvals according to the buyer’s procurement policies and approval workflows.
To see a PunchOut demo video, click here.
Technical Components Involved
PunchOut catalogs rely on an integration that enables B2B eCommerce stores and buyer eProcurement solutions to exchange data. Order data and other information is encoded into a data format recognized by both platforms or by an integration layer that mediates communications between the buyer and supplier software. PunchOut catalog data is encrypted and communicated to the proper channels through a secure internet connection.
Two main data formats are in widespread use for PunchOut catalogs:
- cXML is an XML-based protocol and data format developed by Ariba in the late 1990s for the Ariba eProcurement platform.
- OCI is an alternative data format developed by SAP.
cXML and OCI PunchOut catalog integration have several advantages over older procurement integration technologies such as Electronic Data Interchange (EDI 832) and Catalog Interchange Format (CIF) catalogs.
Traditional EDI catalogs relied on peer-to-peer connections between buyer and supplier platforms or on value-added networks, which acted as a hub for communication between multiple businesses. EDI implementation is more complex and expensive than PunchOut catalogs, and it does not support the superior procurement experience offered by B2B eCommerce and PunchOut catalog technology.
CIF catalogs are static hosted files. They may be adequate for small catalogs that rarely need updating. But they are not suitable for larger catalogs or catalogs in which product details such as pricing change frequently. In contrast, PunchOut catalogs are dynamic. Because they are based on eCommerce software, suppliers can dynamically adjust product information and leverage B2B eCommerce features to provide an up-to-date, personalized experience.
Best Practices for a Smooth PunchOut Process
- Clear Communication: Ensure that both the buyer and supplier have a clear understanding of the PunchOut process and requirements.
- Robust Authentication: Implement strong authentication mechanisms to ensure secure access to the PunchOut catalog.
- Regular Testing: Conduct regular testing of the PunchOut process to identify and resolve any issues.
- User Training: Provide training for users on both the buyer’s and supplier’s sides to ensure they are familiar with the PunchOut process.
- Choosing the right PunchOut partner: When evaluating PunchOut providers, such as TradeCentric, make sure they have technology in place to grow and scale your PunchOut program as your business grows.
Summary
The PunchOut process is a critical component of B2B eCommerce, enabling a seamless integration between buyers’ eProcurement systems and suppliers’ eCommerce platforms.
The next chapter will focus on the practical aspects of setting up a PunchOut catalog, including technical requirements, integration strategies, and testing protocols.
The basic technical requirements for setting up a PunchOut catalog are:
- eCommerce Platform: A PunchOut-enabled eCommerce platform that can communicate with the buyer’s eProcurement system using standard protocols like cXML or OCI.
- Authentication: Secure authentication mechanisms to ensure that only authorized users can access the PunchOut catalog.
- Integration Providers: Tools and middleware that facilitate the exchange of data between the eCommerce platform and the eProcurement system.
Integrating with eProcurement Systems
- Understanding Procurement System Requirements: Each eProcurement system (e.g., Ariba, Coupa, SAP) may have specific requirements for integration. It’s important to understand these requirements to ensure a successful integration.
- Developing the Integration: This involves configuring the eCommerce platform and the eProcurement system to communicate with each other, typically using cXML or OCI protocols.
- Testing the Integration: Before going live, it’s crucial to thoroughly test the integration to ensure that the PunchOut process works smoothly and that all data is exchanged accurately.
Testing and Troubleshooting Common Issues
- Testing Scenarios: Test various scenarios, including different types of products, quantities, and user roles, to ensure that the PunchOut catalog can handle real-world situations.
- Error Handling: Implement robust error handling mechanisms to capture and address any issues that arise during the PunchOut process.
- Monitoring and Support: Set up monitoring tools to track the performance of the PunchOut catalog and provide support to address any issues promptly.
- Portals: Tools like the TradeCentric Business Intelligence Portal offer connection testing and troubleshooting for seamless integration.
Best Practices for a Successful PunchOut Catalog
- User Experience: Design the PunchOut catalog with a focus on user experience, ensuring that it is easy to navigate and that products are clearly presented.
- Product Information: Keep product information up-to-date and accurate, including descriptions, pricing, and availability.
- Security: Implement strong security measures to protect sensitive data and ensure the integrity of the PunchOut process.
Summary
Setting up a PunchOut catalog requires careful planning, technical expertise, and collaboration between the supplier and the buyer. By following best practices and ensuring thorough testing and integration, suppliers can create a seamless and efficient PunchOut experience for their B2B customers.
In the next chapter, we will explore best practices for designing and maintaining PunchOut catalogs to ensure their success and effectiveness.
Advanced topics in Punchout
Level II PunchOut Catalogs
eProcurement systems differ in the sophistication of their PunchOut catalog capabilities. Depending on the features, an eProcurement system may accept Level II PunchOut integration. The major difference is in how product search is handled.
In most cases, a PunchOut catalog allows a buyer to select a supplier from within their eProcurement system and search for products using the supplier’s eCommerce
catalog’s search feature rather than the internal eProcurement system marketplace search.
A Level II PunchOut catalog allows a buyer to search for individual items within the marketplace of their eProcurement system, rather than “punching out” to each supplier’s eCommerce store to explore. When a buyer searches for a product in their eProcurement interface, they are presented with a list of matching items from all integrated supplier catalogs. Clicking on an item transfers the user directly to the product page for that item in the supplier’s eCommerce catalog to add to their shopping cart. Level II PunchOut catalogs allow supported eProcurement platforms to direct purchasing agents to specific locations in the relevant PunchOut catalog. These locations are typically described as store, aisle and shelf or product level locations:
- Store locations direct users to the landing pages of the relevant catalog and searchers can use the store’s search feature or browse the desired product or category
- Aisle locations direct users to product category pages
- Shelf of product locations direct users to specific product pages on PunchOut catalogs
Only a small number of eProcurement systems accept Level II PunchOut functionality at this time, but they are all continually expanding functionality to provide a more “Amazon-like” marketplace experience.
Summary
The landscape of PunchOut technology is continually evolving, with advancements in security, analytics, and integration with other B2B eCommerce technologies. Staying abreast of these developments and implementing best practices in PunchOut catalog management can help suppliers and buyers alike achieve greater efficiency and security in their procurement processes.
As we explore the complexities and innovations of PunchOut technology, it’s essential to remember that real-world applications and success stories provide valuable insights into its practical benefits. In the final post of this guide, we will delve into case studies and real-world applications of PunchOut, highlighting how businesses have leveraged this technology to streamline their procurement processes and achieve tangible results.
Leading PunchOut provider, TradeCentric, shares a case study on their customer, MillerKnoll.
After establishing a strong eCommerce presence, MillerKnoll shifted their focus to offering integration capabilities in partnership with TradeCentric and Salesforce Commerce Cloud.
How MillerKnoll transformed its B2B eCommerce capabilities with B2B Connected Commerce
INTRODUCTION
MillerKnoll, formed in 2021 between the merger of Herman Miller and Knoll , is a collective of dynamic brands that comes together to design the world we live in. The MillerKnoll brand portfolio includes Herman Miller, Knoll, Colebrook Bosson Saunders, DatesWeiser, Design Within Reach, Edelman, Geiger, HAY, Holly Hunt, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck|FilzFelt.
This unparalleled platform is dedicated to redefining modernity in the 21st century, actively working towards a more sustainable, equitable, and beautiful future for all.
MillerKnoll has pioneered B2B eCommerce since the mid-2000s. After establishing a strong eCommerce presence, the company shifted their focus to offering integration capabilities, with TradeCentric as a strategic partner. In 2023, MillerKnoll initiated its migration to Salesforce Commerce Cloud, which offers a scalable eCommerce platform that can grow with their business.
These events proved to be the catalyst for MillerKnoll’s journey to best-in-class B2B connected commerce. MillerKnoll’s strategic focus on enhancing their B2B commerce offering supports easy, rapid and scalable B2B integrations that benefit both customers as well as the business.
THE CHALLENGES
When MillerKnoll first partnered with TradeCentric in 2021, MillerKnoll’s inaugural B2B eCommerce platform was dependent on maintaining multiple bespoke integrations with individual buyer organizations, most commonly SAP Ariba. Managing integrations across users, even those on the same eProcurement platform, was a challenge, as each had its own processes and approach. When more buyers began to require integration with other eProcurement platforms, the complexity compounded.
The resources allocated to manage these integrations were very limited, and manually building and maintaining custom routing required a dedicated resource who focused solely on this work. As a result, managing change or onboarding new buyers was a slow and onerous process.
Once the wider business recognized the challenges, it saw it needed a solution.
“We were getting to a point where it wasn’t just Ariba that we were integrating with. We were starting to see many different platforms, and clients branching out to other things, and we just had a hard time keeping up.”
- Shana Anglin, Senior Manager, B2B eCommerce
THE SOLUTION
Leveraging their extensive knowledge in eCommerce, the MillerKnoll team recognized the collaborative potential with TradeCentric to better manage existing B2B eCommerce integrations and build new connections in a more efficient, scalable way.
MillerKnoll transitioned their buyers from bespoke connections that were managed in-house to the TradeCentric platform, where integrations were built and maintained by the longstanding leader in B2B commerce integration. By letting TradeCentric handle integration setup and maintenance, the MillerKnoll team could now focus on more strategic tasks that drive further revenue opportunities for the business.
“The great thing about the partnership with TradeCentric is that they really want to work with us and we feel that and we know that. We’ve been able to work together to figure things out because our business is a little different than some of the other clients that TradeCentric has.”
- Shana Anglin, Senior Manager, B2B eCommerce
THE RESULTS
MillerKnoll’s partnership with TradeCentric, along with the Salesforce Commerce Cloud platform, adds value to the B2B eCommerce channel every day. Now, MillerKnoll’s best-in-class B2B connected commerce offering means it can provide the seamless, scalable integrations customers need.
Salesforce remains a key ally, providing flexibility for MillerKnoll to establish an online environment where large customers effortlessly shop from predefined product standards offered by their respective dealers.
MillerKnoll’s commitment to enhancing connected commerce spans the entire buying process, from PunchOut to Invoice Automation, ensuring an optimal experience for its customers.
This strategic approach positions MillerKnoll with a notable competitive advantage in today’s digital-centric B2B landscape. Notably, a 2023 TradeCentric survey revealed that MillerKnoll is among the exclusive 17% of surveyed companies operating at the highest maturity level for B2B connected commerce, underscoring its leadership in the industry.
Perhaps the greatest value comes from the symbiotic relationship between MillerKnoll, Salesforce, and TradeCentric. Challenges and opportunities are tackled together, openly and honestly, in a relationship founded on the understanding that each partner’s success depends on the other.
It’s this relationship, coupled with MillerKnoll’s commitment to B2B connected commerce and the strength of Salesforce and TradeCentric’s solutions, that have positioned MillerKnoll to stay ahead in the fast-changing world of B2B eCommerce.
“Our mindset is that anything we can do to help TradeCentric and Salesforce be successful feeds back to our success. There’s a symbiotic relationship there, so what we’ve set up with both TradeCentric and Salesforce, and what we’ve set up with our customers stays rock solid.”
- Rob Richardson, Senior Digital Product Manager
Summary
Thank you to our collaboration partner, TradeCentric for assisting in the creation of this guide. For more information on PunchOut, visit the TradeCentric site.
B2BEA eProcurement Partners
TradeCentric 
Bridging the Gap Between eCommerce and eProcurement.
Shopspray
Personalized Punchout
Greenwing Technology
Connecting suppliers to buyers through the magic of punchout
Related news & insights
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- The B2B eCommerce Association is thrilled to announce that TradeCentric, a recognized leader in B2B automation and digital transaction processes,
- Brett Sinclair
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