PunchOut integration for your webshop? (OCI & cXML)

Your corporate client has asked you to set up a PunchOut integration with their procurement system. But chances are, you have never even heard of PunchOut integrations until now. No problem! Abeta is here to help you set up the right integration with your client's e-procurement software.

#What is a PunchOut integration?

To understand what punchout integration actually means for your business, look at it as a direct bridge between two systems. Through this integration, companies can allow their employees to log into a supplier's webshop directly from their ERP or procurement software. The ERP system sends along the necessary data to automatically and securely log the employee into the environment.

Once logged in, the employee can fill their shopping cart in the webshop just like any regular user. As soon as this process is finished, the contents of the cart are not paid for immediately, but are sent back to the procurement software. (This means no actual order has been placed yet!)

Inside the procurement system, the necessary internal approval first takes place. As soon as all approvals are granted, the ERP system automatically sends a purchase order to the supplier, who can then proceed with delivery. If the supplier sends digital invoices, the ERP system can often automatically match them with the original purchase order.

#PunchOut for your webshop

Are you working with your own e-commerce platform? Abeta builds integrations for various systems. Whether you use WooCommerce, Shopify, or Magento, we ensure that your webshop communicates perfectly with your customer's procurement system. We do this by using our own plugins to transfer the data correctly.

For example, does your webshop only support OCI, making it impossible to connect with cXML procurement systems? Abeta's converter helps you make your platform compatible with your client's system.

#The difference between OCI and cXML PunchOut

In practice, there are two different versions of PunchOut. The user experience (as shown in the diagram above) is very similar for both protocols, but the technical implementation, on the other hand, differs quite a bit. "PunchOut" is the overarching term that covers both versions.

#OCI PunchOut

This standard was developed by SAP and uses standard HTTP POST and GET functions to log the customer in and send the shopping cart contents back. Are you a developer or technical consultant looking for the exact parameters, URL fields, and HTML code examples for your integration? View our technical documentation of OCI PunchOut directly.

#cXML PunchOut

This standard was developed by Ariba and sends cXML (commercial XML) files back and forth to the ERP system to log the customer in, transfer the shopping cart, and modify orders. Check out our technical documentation of cXML PunchOut.

Depending on the system your client uses, you will need either OCI or cXML. The implementation that is most suitable for you depends, among other things, on the wishes of your client and the procurement software they use. Generally speaking, an OCI PunchOut implementation is slightly easier to set up than a cXML PunchOut connection.

If you run your connection through Abeta, both protocols are supported, and you can connect with virtually all procurement systems via one general connection with the Abeta middleware.

#Why offer PunchOut to your customers?

Why should you offer PunchOut to your customers? Most suppliers only encounter PunchOut integrations after a customer explicitly asks for one. Also, it is becoming increasingly common for tenders and procurement projects to require PunchOut capabilities with the customer's existing ERP system.

To understand why corporate clients place such a high priority on this, we need to look at their internal procurement policies. By using e-procurement software, an organization proactively ensures (meaning before an order is placed) that internal buying rules are followed. This gives on-site employees the freedom to order independently, while the organization keeps central control.

Decentralized ordering power, but with centralized control.

Take a school, for example: the janitor only has permission within the system to order from the cleaning supplies vendor, while teachers are allowed to order from educational resource suppliers. The local employee creates the purchase request themselves, after which the software automatically looks for the right approval within the organization. Only after this approval is given, the final purchase order is sent to you as the supplier.

Procurement professionals from clients who do not order via PunchOut can often choose which suppliers they place an order with. In practice, this means that one employee will order from 'Webshop A', while another prefers 'Webshop B'. If a PunchOut integration is used, only a limited number of webshops are displayed inside their ERP. As a result, a customer will place orders with the same webshop much more often.

#Why customers choose PunchOut

To create such a purchase request, your product data needs to get into your client’s e-procurement system. Most systems offer three options for this:

• Manual data entry: The client has to manually type in the description, quantity, price, tax percentages, and product codes for every single item. For regular orders, this quickly becomes a huge administrative burden (and is highly prone to errors).
• Internal catalog: Products are loaded into an internal catalog inside the e-procurement system itself. In practice, these systems are far from user-friendly, and it is usually up to the customer to keep this assortment up to date.
• The PunchOut / OCI integration: The customer navigates from within their system directly to your modern webshop and is automatically logged in. Once their shopping cart is filled, instead of checking out, the cart data is sent straight back to the e-procurement system. All products are instantly ready for the purchase request without any mistakes.

This makes PunchOut by far the best choice.

#The 3 major benefits for your customer:

1. Speed: Products are transferred instantly. This saves the buyer time and reduces the chance of mistakes. On top of that, invoicing becomes a lot easier later on because the order was already approved upfront.
2. User-friendliness: B2B customers are used to modern webshops. They simply prefer working in your familiar e-commerce environment over an outdated, internal ERP catalog.
3. Real-time reliability: Whether you change a price, add a new product, or run out of stock, the customer sees this live in your shop right away. Your assortment is always 100% accurate.

#Increased revenue and faster payments

Buyers whose companies do not use PunchOut often have the freedom to choose which supplier they order from. In practice, this means one buyer might order from 'Webshop A', while another prefers 'Webshop B'. However, when a PunchOut integration is set up, the ERP system usually limits the view to a select number of preferred vendors. As a result, customers will place orders with your webshop much more often and stay more loyal. On top of that, your invoices are often paid faster, because customers can easily match incoming invoices with the pre-approved purchase orders.

#Get started

Connect your webshop effortlessly with your customer's ERP or procurement system. Discover the PunchOut (OCI/cXML) solutions from Abeta. Request a demo right now!