Good To KnowPunchOut Level 1 vs. Level 2 with Ariba®: These are the differences
PunchCommerce helps you to create a PunchOut catalog within a few minutes. We support both PunchOut via Ariba® Level 1 and Level 2, but what are the differences?
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What is a PunchOut catalog?
PunchOut or PunchOut catalogs refer to a type of catalog procurement. Here, the buyer can access the supplier's online store via their goods procurement system. This means that the buyer can order products without leaving his system, as the catalog and the eProcourement application remain constantly connected.
Within the PunchOut catalog, the retailer can select the desired goods and place them in the shopping cart. In contrast to a conventional online store, however, no orders are sent to the supplier at this point; instead, the shopping cart with the selected products is returned to the buyer's eProcurement system.
What advantages does PunchOut offer?
The provision of interactive catalogs on the supplier's website offers many advantages. In particular, time and money savings play a major role for retailers and suppliers. By setting up a PunchOut catalog, catalogs no longer need to be imported manually into the selected retailer's procurement system. In addition, the automated process means that catalogs are constantly updated. If a product is given a new name or a new price, this change is automatically reflected.
What is SAP Ariba®?
SAP Ariba® is a cloud-based solution. It enables buyers and suppliers to contact each other via a platform and process their business together. This means that it is an important platform for creating and using PunchOut catalogs. SAP Ariba® explains its functions as follows:
Buyers can manage the entire purchasing process to achieve sustainable sourcing savings and control spending while building healthy, ethical supply chains.
Suppliers can connect with profitable customers and scale existing relationships to simplify sales cycles and improve cash inventory control.
What is PunchOut Level 1 with Ariba®?
Ariba® distinguishes between two PunchOut levels: Level 1 and Level 2. With the help of PunchOut Level 1, retailers can search for the relevant items or products directly in the supplier's online store.
This means that a corresponding hyperlink is displayed within the goods procurement system, which takes the retailer to the supplier's online store. Here they can place their selected products in the shopping cart. These are then transferred back to the eProcurement platform.
When this step is completed, in our case PunchCommerce sends the shopping cart back to the procurement system. The shopping cart items now appear with prices and other information within the procurement system (in this case Ariba®).
What is the difference to PunchOut Level 2 with Ariba®?
Ariba® PunchOut Level 2 goes one step further. It enables users to search for PunchOut articles directly within SAP Ariba®. With Level 1, the retailer always jumps back to the supplier's store. This jump is optional in the Level 2 PunchOut process and can be completely omitted in some cases.
In summary, this means that PunchOut Level 2 makes the supplier's articles directly available in the customer's procurement platform. This not only increases visibility, but also makes the entire range available to the purchasing user more quickly. However, there are also disadvantages, for example, it must be technically ensured that the item data is updated cyclically, e.g. in the event of availability or price changes.
