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More and more organisations are now requesting their business suppliers support some form of Punchout or XML compliance in order that the purchaser can gain web access to the suppliers products or services so that they can be ordered online.
Netalogue are experienced in providing integration solutions for most e-procurement systems including SAP™, Oracle™, Ariba™, Netalogue™ and most leading Marketplaces.
Punching out to the purchasing systems (e.g. Ariba, Oracle, SAP) your key customers are using.
More and more purchasing companies are implementing electronic purchasing (e-procurement) solutions to control and cut the costs associated with their indirect spend. Consequently these (usually larger companies) will request that their suppliers support certain data exchange standards so that they can access
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want to talk to us?
0845 222 0350
international
+44 (0)163 981 6130
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the catalogues of their preferred suppliers through their own solutions to place orders. When these orders are completed the details are automatically sent back to the purchaser’s ordering system (e.g. Ariba, SAP, Oracle) allowing them to automatically generate a requisition, purchase order and facilitate payment. Opportunities for companies able to support a Punchout standard include being able to gain a more permanent presence and foothold on their customers purchasing screen. It can also generate opportunities for the supplier to win contracts with new customers who use the same Punchout standard.
Punching out to the marketplaces your key customer or target customers are using.
In addition to supporting Punchout standards of individual clients purchasing systems (see above), supporting the Punchout standards of marketplace portals can also be a shrewd move for ebusiness operators.
Marketplace Portals are online trading platforms whose objective is to connect relevant buyers to relevant suppliers thereby increasing choice and reducing the costs of trading.
Government bodies including health and education in the UK all have stretching targets to purchase online and marketplaces can offer them low risk opportunities to meet their obligations. Most suppliers to big businesses and in particular the public sector will already know the importance of being able to collaborate with industry and government backed procurement portals (e.g. @UK, UNITY, PECOS, IDeA, Zanzibar).
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What is Punchout?
From their e-procurement application the buyer will typically click on a link to access a supplier's electronic catalogue where they can then build their electronic order. When complete the order details are sent back to their e-procurement application. The supplier will then receive a purchase order that is generated by the e-procurement application.
What are the benefits of Punchout?
If you are reading from the perspective of a supplier, the benefits are :
- Huge opportunities to gain a more permanent presence and foothold on the buyer's
purchasing screen and there is less likelihood the buyer will drop a supplier who has
achieved full Punchout integration.
- Opportunity to win contracts with new customers who use the same Punchout standard.
- In addition, all the well documented advantages of e-business such as being able to
automate routine and repeat orders.
If you are reading from the perspective of a buyer, the benefits are :
- Your supplier (and not you) takes on the responsibility of maintaining the catalogue
product data.
- This can mean a quicker roll out of your e-procurement solution.
- Punchout rules can standardise the product information provided by different suppliers
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From the perspective as a supplier, ensuring websites are compatible with both leading purchasing systems and popular marketplaces can be critical, especially if key customers are using them. It can also offer a direct route to new and relevant customers and act as a great differentiator between competing suppliers.
It is important to realise that many large enterprises have invested huge sums in
e-procurement technology, to justify this investment they first need to forge links with those suppliers who are technically capable of trading in this way. Being able to say “we can support Punchout” has been a huge advantage for many Netalogue clients who have gone on to use this capability to leverage their position to win new or retain contracts with major customers. The converse to suppliers grasping this opportunity is to see a competitor move in using their own compliance as a key differentiating factor.
If you believe your company may have a requirement for our services or technologies please call 0845 222 0350 for an informal pre-sale discussion. In most cases you will instantly be able to speak to one of our mature consultants who will be able to provide you with valuable and practical experience based on years of experience to aid your decision making process.
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