How does PunchOut work?
A PunchOut catalog is built on a standard format used by most procurement systems called Open Catalog Interface (OCI). More accurately called a PunchOut website, this site looks like an e-commerce website but adds unique functionality to communicate with procurement systems directly through cXML.
While it may seem complicated, at its base, PunchOut takes a seller’s e-commerce site and puts it inside the buyer’s procurement system. Unlike hosted catalogs, PunchOut does not require buyers or sellers to manually update information between their systems. This means that the buyer’s purchasing system will always have accurate information to prevent complications throughout the procurement process.
Here is a quick overview of the primary points of communication between all aspects of a PunchOut website:
- Connect: Employees use a purchasing system to navigate their B2B shopping experience when they need to buy goods or services to perform their job. B2B customers can access product catalogs and data through PunchOut integration with you and the supplier’s e-commerce store.
- Data Transfer: PunchOut sends a PunchOut Setup Request (PSR) message to examine incoming data and route to the correct supplier catalog. PSR is usually formatted in specific commerce extensible markup languages like cXML or OCI.
- Shop: Once connected, users can interact with a supplier’s e-commerce site quickly and easily. Once they find the goods and services they are looking for. Users can checkout with the items in their shopping cart. Users have their shopping cart items transferred to the buyer’s procurement application for processing.
- Purchase Order: Once transferred to the buyer’s e-procurement system, the PunchOut solution guides workflow automation behind the scenes like checking approvals and accounting information. Once everything is approved, the buyer’s ERP sends the order through your fulfillment process.
- Shipment Notice: A PunchOut website sends communication between the supplier’s eCommerce platform and the buying organization throughout the entire shipping process. PunchOut catalogs send notices between the seller and buyer so all parties can track packages in real-time.
- Invoice & Reporting: Once items are delivered, the PunchOut site will relay information about the requisition back to the buying organization. This information will be used for accurate reports, budgets, and enterprise resource planning.
A PunchOut website uses various connections and automation processes to make requisition easier for everyone throughout the procurement process.