The Difference Between Web Orders and E-Procurement Orders

In a recent post we talked about the opportunity available to B2B sellers if they tap into the lucrative e-procurement channel using PunchOut. Today, we’ll answer a question that many of you probably asked yourself, “Why can’t my e-procurement customers simply access my web store directly from their desktop browser?”

Simple question. Simple answer. Your customer has invested millions in an e-procurement system (Coupa, Ariba, SAP, Oracle, Jaggaer, iValua, Tradeshift, etc. ) Their e-procurement system ROI (return on investment) is based on 100% of their purchases being originated in, and processed by, the e-procurement system. But there’s more…

Another purpose of an e-procurement system is to empower employees to place their own orders in real-time, automating the old manual process of sending a requisition to the purchasing department, having them review it, approve it, contact the supplier, check the price and availability, then place the order. 

This process is now automated by the e-procurement system and using the e-procurement system for all purchases is typically mandated within a buying organization. Placing an order outside the e-procurement system – for example, going directly to your web store from their browser – a big no-no. 

As a result, the typical web ordering process, shown below, where the customer logins in, shops, creates a cart, clicks “order” and their credit card is charged can’t be used…

But in the e-procurement ordering process, the cart to the e-procurement system to be approved after shopping is completed. During that approval process, the e-procurement system can make changes to quantity, price, and shipping options; can remove items and even drop the cart altogether.  Once the approval process is complete, the e-procurement system sends the Purchase Order back to the web store – using PunchOut, as shown below…

So, just having an e-commerce web store isn’t enough if you want to access the lucrative e-procurement channel – you need PunchOut capability too.