PunchOut E-commerce: What it is and why it matters

PunchOut is an integration between a supplier's e-commerce platform and a customer's procurement system. Buyers access the supplier's online store through their procurement platform, select products and return their shopping cart. The purchase is then processed according to the company's standard procurement procedures.

1. The buyer opens their procurement system.
2. From there, the buyer accesses the supplier's online store.
3. The customer is automatically identified and sees the correct product assortment and agreed prices. 
4. Products are added to the shopping cart.
5. The shopping cart is transferred back to the procurement system.
6. The order is approved and completed according to the customer's procurement process.

Traditional procurement systems are designed to manage purchasing rather than deliver an engaging product experience. For businesses with extensive or technically complex product ranges, finding the right products can therefore be challenging.

With PunchOut, buyers can instead use the supplier's own e-commerce platform, benefiting from tailored search, filtering, clear product variations, images, documentation and guidance. Suppliers can also showcase their offering and create additional sales opportunities.

PunchOut and EDI serve different purposes in digital B2B commerce. PunchOut connects the customer's procurement system with the supplier's online store and supports the product selection process. EDI, Electronic Data Interchange, enables the electronic exchange of business documents such as purchase orders, order confirmations and invoices.

The two technologies can work together. Customers can select products through PunchOut and subsequently submit the final purchase order via EDI.

For businesses with an established B2B e-commerce platform, PunchOut can be a natural next step. Integrating the online store with customers' procurement systems creates a more connected and efficient purchasing process. 

At Rove, we work with Shopspray's PunchOut solution for Litium. We help businesses connect their e-commerce platforms with customers' procurement systems to create smoother digital purchasing experiences.