What is System 2 System PunchOut?
"PunchOut" or "System 2 System" refers to a digital system that allows customers to browse their supplier’s product catalog online and then purchase goods or services through their own procurement or ERP system. In other words, it is a B2B procurement platform that allows you to purchase products from external suppliers within your own digital infrastructure.
How do you set up System 2 System PunchOut?
- Via an iframe or screen in your procurement system: Customers open a limited ‘webshop environment’ within their own ERP or procurement system. They place orders directly through this webshop (which often looks very similar to their supplier’s actual webshop), with the only difference being that at the end of the process, the order isn’t placed online; instead, the shopping cart is imported into their own ERP or procurement system.
- A slightly more complex version of System 2 System makes use of middleware (for example, SAP Business Network, formerly Ariba) that has a catalog from which orders can be placed directly. This ‘middleware catalog’ is usually uploaded by the supplier and is separate from the supplier’s online store. It allows the customer to place orders entirely within their own system.
Example System 2 System
Benefits of System 2 System PunchOut for the Buyer
This System 2 System approach offers many benefits for both suppliers and buyers, the most important of which is that buyers and their employees can order products from the online store directly within their own ERP or CRM system, thereby better managing their purchases. In addition, this PunchOut method offers the following benefits:
No maintenance
As a buyer, you are not responsible for keeping your supplier’s product catalog up to date in your own procurement system. That responsibility falls to the supplier.
Better Information
Because PunchOut catalogs are maintained by suppliers and are available online, buyers can find more detailed product information, such as availability, current discounts, and associated shipping costs. Suppliers typically update this information in real time.
Streamlined and Centralized Procurement
By gaining access to multiple PunchOut catalogs from different suppliers, procurement managers and other users can benefit from improved procurement consolidation and better spend management.
E-commerce Shopping Experience
Integrating PunchOut catalogs into a procurement system will simplify the purchasing process by allowing users to search for products within their own application. They will no longer have to switch from one website to another to find the right product. Since they are already familiar with the UI of their own system, they can easily find the items they are looking for.
Improved Productivity
With the help of online automation, procurement professionals can increase their productivity by processing orders more quickly. This is part of what we do here at Alistar: automate and optimize the entire procurement cycle to maximize the impact of your resources.
Benefits of System 2 System PunchOut for Suppliers
PunchOut catalogs are beneficial not only for buyers but also for suppliers.
- It offers outstanding customer service, allowing you to truly operate as a preferred partner.
- It enables salespeople to upsell within the limits of the buyer’s contractual obligations and capabilities.
- They can offer customized discounts in real time based on market trends.
- It improves customer loyalty by offering fair prices, a positive shopping experience, and guided shopping.
- Billing is simpler, more consistent, and more transparent.
- The catalog features a selection that is always up to date.
NatchOS as a System 2 System PunchOut solution
With the software from NatchOS You can quickly and easily integrate your e-business platform with internal and external systems to enable punch-out. You’ll be easily listed in your business customers’ procurement systems. This way, you’ll increase revenue from existing customers and attract new ones who may require e-procurement.
Because the NatchOS framework is compatible with both OCI and cXML formats, all vendors with a System-to-System platform can be integrated.
The average implementation time is also very short (a few days), because on the NatchOS side, we simply need to enable the correct protocols. The solution is also flexible enough to accommodate company-specific variations.
Want to get started with System 2 System, too?
We are business consultants and technology specialists through and through who understand how the web works. Whether your organization is just getting started with e-business integration or you want to revamp, redesign, or simply improve your e-business, it’s advisable to rely on a team of experts who don’t lose sight of the business side of things.
