What is Punchout?
I've been twiddling my thumbs for almost a quarter of an hour, looking for the right angle to start writing this article, nothing. It's the blackout. Inspiration failure? That no ! The difficulty is elsewhere. Indeed, it is more the understanding of the topic which poses problem. Punchout, but what is it actually? It is finally at the end of an in-depth research that I manage to unravel the breadcrumb trail.
Simply put, this term refers to an electronic catalog that businesses associate with their e-shopping solution to simplify the ordering process. Concretely, the punch out intervenes within the framework of the dematerialization of the procedures related to the commercial transactions. Its role is to optimize the product ordering process between companies and their suppliers. But you should not confuse a Punchout catalog with a hosted catalog, because the two are not used in the same way.
Punch out, for example, is a tool that connects a supplier's web solution to your company's purchasing environment. In other words, as a company, this solution offers you easy access to your supplier's e-commerce site, via a buyer account. Of course, the choice of goods is based on conditions previously negotiated and materialized by a contract. These include prices, delivery costs, any discounts and even exclusions.
After entering your purchase request, it is processed automatically in the validation circuit.
Then, it is sent to the supplier for preparation and delivery of the order.
BtoB suppliers and marketplaces are your main contacts when you decide to use the Punchout method to make your purchases online.
How does Punchout work?
As mentioned above, a Punchout solution allows you to access your supplier's merchant site to place your orders directly from your own e-purchase solution.
You can therefore search for products, order and pay for the online purchase of selected products without leaving your e-procurement environment.
This process has several steps.
The first is to open your e-shopping platform and find a specific supplier in the list of sellers approved by the company. The second step is to automatically log into your supplier's online store or marketplace to do your shopping. System authentication is the condition without which you cannot access your buyer account on the supplier's platform.
The next step is to choose the products to buy from the seller's catalog by browsing the site.
When you have finished selecting your products by putting them in a basket, instead of placing the order, you do a “Punchout”.
In other words, your order data is exported automatically to your own electronic supply management system.
In-house processing takes place in two stages.
The first is the approval and validation stage and the second is the payment stage.
The approval and payment of the order is done in your e-procurement platform.
The order thus created in your supplier's electronic warehouse automatically triggers the delivery procedure under the usual conditions.
What are the benefits of Punchout?
The Punchout solution is a simplified, real-time procurement process.
It allows you to put your buyers in touch with the sellers of your supplier's e-commerce site.
By combining product research, ordering and tracking, this method significantly improves your user experience on the procurement platform.
Another advantage of Punchout is the execution of the accounting which applies to the overall invoicing of your order.
All these operations take place instantly on the same platform.
In addition, thanks to Punchout, your buyers can log in at the same time or separately on the supplier's site using the same buyer account.
In addition, the precision of your orders increases with the accompaniment of Punchout.
On the one hand, you use your e-procurement software and on the other hand, this method allows your supplier to make you better proposals both for the price list and for any discounts.
A digital solution intended for BtoB transactions, Punchout allows you to have direct access to your supplier's dynamic offer.
The best part is that you can place your orders from your office, from your own online shopping solution.
How did the purchasing function make it possible to overcome the difficulties linked to the health crisis?
Many sectors of activity have been impacted by the health crisis, albeit to varying degrees. However, the transformation of the purchasing function has enabled this supply management tool to overcome the difficulties. The rise of e-procurement has made it possible to dissipate tensions by facilitating not only the ordering process, but also the procedures for validating and settling invoices by electronic means of payment.
Speed of execution of orders and respect for deadlines are the two major assets that have enabled the maintenance of activity during a pandemic period and beyond. To do this, the essential criterion for setting this entire system in motion is a better knowledge of suppliers and the establishment of a relationship built on mutual trust. We have thus witnessed a change in the missions devolved to the purchasing department during the health crisis.
It must be said that it was necessary to carry out both human and technical preparation on both sides in order to better manage the crisis. Both internally and with the supplier, the implementation of teleworking tools and the digitization of the process were the milestones of this strategy. This period was also an opportunity to strengthen ties between sellers and buyers. The survey shows that payment terms and even their reduction were respected by 67% of respondents.
In terms of optimizing the article research and order submission processes, the contribution of Punchout has proven to be immeasurable.
Among the benefits, we can cite the financial savings achieved, the delegation of the management of the catalog to the supplier and the improvement in the productivity of the teams despite the health crisis.
In addition, better expense management, improved visibility through centralized purchasing, and direct and easy access to product information were recorded.
How to put in place responsible purchasing policies?
The experts are categorical. Only companies that have committed themselves to a responsible policy have been able to succeed with, as a result, better adaptation and effective management of the crisis. A recent study shows that this crisis has brought the issue of responsible purchasing back to the forefront. Above all, it has shown that this policy can serve as a prevention tool in order to better manage risks, whether or not we are in a period of crisis.
Three quarters of respondents say that it is thanks to their responsible purchasing policy that they have been able to keep their heads above water. This requires effective management of the relationship with their suppliers. The risks of supply disruption were thus avoided, as were social risks. In addition to maintaining activity, the other consequence of this good management is a gain in visibility at the time of the recovery.
The panel made up of all the respondents is nevertheless unanimous on the urgency of supporting them and protecting them financially. While environmental and social issues are not yet a priority as such, we can be pleased that in general, respondents are aware of their importance. And for good reason, for 60% of them, the post-crisis period is an opportunity not to be missed so that companies' strategies can be rethought. The objective now being that they become more responsible.
Pierre Pelouzet is the business mediator. For this specialist, there is no doubt “this unprecedented crisis, through its consequences, highlights the essential role of dialogue. Indeed, those who are doing the best are those who had already put in place the tools conducive to effective collaboration with their suppliers. The good news is that the majority of purchasing managers surveyed will go in this direction or even become more committed. This crisis is an opportunity to be seized to rethink the purchasing strategy, make it more responsible and engage in a united approach towards its partners ”.