The Need to Use SAP PunchOut Catalog

SAP PunchOut catalog is commonly designed for B2B users who have employed SAP purchasing software into their business organization. Users who are using other procurement systems such as those manufactured by Ariba, PeopleSoft etc., unfortunately cannot use SAP PunchOut. SAP procurement system uses OCI protocol for transactions, which is supported by SAP PunchOut. Other procurement systems use cXML protocol for interacting with PunchOut catalog.

With SAP PunchOut, the customer can reach the supplier’s online store from within his SAP procurement system. Large buying organizations find it easy to execute purchasing process with this PunchOut technology. SAP procurement users are able to connect directly with their contract catalog. The contract catalog is remotely located at the supplier’s end yet the user can setup a link and communicate from within the procurement system. In simple words, with PunchOut, the contract catalog sits in the user’s procurement application.

One big advantage of SAP PunchOut catalog is that the user has real time access to price and availability of products. This means the buyer doesn’t have to import contract catalog to view new product updates. This is because whenever the supplier adds or deletes products or changes specification of an existing product, the customer can view the changes in real time. Also, if your business is involved in selling complex products (custom product configuration), they can be easily represented in SAP PunchOut.

Through OCI and SAP PunchOut technology, the buyer is able to follow the standard B2B order approval process set up by the organization. Overall, an efficient ordering process is guaranteed for your B2B buyers, which can play a key role in customer retention. Order processing cost considerably reduces since the user can now electronically send purchase order to supplier. Also, the B2B buyer always has access to 100% accurate contract pricing as non-contract products are never visible to the buyer.