Well, that escalated quickly.
eProcurement, or e-procurement, is an umbrella term for digital buying that lives in the ERP or EPI systems on any ecommerce platform. Punchout is a tool that connects your catalog with your partners’ procurement tools. Your partners’ employees can research and buy your products from within their ERP or e-procurement system. Often this looks like a button within their system that takes them to a “Punchout Catalog” (or similar term). Once there, they can view and select the products they want to purchase from the hosted catalog, add them to the cart, and submit an order for review and approval through the procurement system.
A January 2022 report from digitalcommerce360.com reports that e-procurement sales continue to grow:
[In 2021], e-procurement sales volume grew to $934.2 billion, up 17% from $798.4 billion in 2020. And one channel they are using much more of these days is e-procurement and punchout, which enables businesses to purchase supplies directly from a supplier’s ecommerce website or B2B marketplace without leaving their own e-procurement application. In 2021, e-procurement once more emerged as among the fastest growing digital commerce sales channels. In fact, in 2022 e-procurement for the first time will top $1 trillion in annual sales, based on a projection from Digital Commerce 360.
Many very large organizations require eProcurement and Punchout. Even if your current customers don’t require it, it can present a huge opportunity for capturing revenue online. Implemented well, eProcurement and Punchout reduces the friction and roadblocks from purchasing your goods and services.
What is a Punchout Catalog?
And what does good Punchout look like? Punchout is an opportunity to build a digital experience that is customized for your users. Help your customers’ buyers order more quickly and easily by managing catalog and pricing:
- Show only approved products.
- Display custom pricing, bulk discounts, and any customer-specific pricing rules.
- Show inventory and availability.
This is an opportunity to design the digital experience with the customer experience in mind, seeing how your site will appear in their ERP/ e-procurement system and designing for those parameters. Other considerations include:
Assessing the Need for Punchout
Assessing the Need for D2C