SAP x Shopify punchout catalog integration
First Light built a punchout catalog integration between an equipment supplier and a large Australian government organization. This allows the government organization to log into their procurement system (SAP) and be automatically logged into the supplier's e-commerce website (Shopify).
Once the user has added items to their cart and clicks "create purchase requisition," a purchase requisition is created in SAP for approval by the manager. Once the purchase requisition is approved, a purchase order is created and sent to Shopify. Shopify then pushes the order to the supplier's ERP system.
If you are confused about what a punchout catalog is, here is some general information.
What is a punchout catalog?
A punchout catalog is a type of electronic commerce (e-commerce) catalog that allows buyers to purchase goods and services from suppliers directly from within their own procurement system. This is achieved through a process called "punchout," in which the buyer is temporarily redirected to the supplier's website to browse and select items. Once the buyer has finished shopping, they can "punch back" to their own procurement system to complete the purchase order.
Punchout catalogs offer a number of benefits for both buyers and suppliers. For buyers, punchout catalogs can help to streamline the procurement process by eliminating the need to manually enter product information into their procurement system. This can save time and reduce the risk of errors. Additionally, punchout catalogs can help buyers to enforce their procurement policies and procedures, such as by requiring approval for all purchases over a certain amount.
For suppliers, punchout catalogs can help to increase sales and improve customer satisfaction by making it easier for buyers to purchase their goods and services. Additionally, punchout catalogs can help suppliers to reduce their operational costs by automating the processing of orders.
How do punchout catalogs work?
Punchout catalogs are typically implemented using a standard called cXML (commerce XML). cXML is a messaging format that allows buyer and supplier systems to communicate with each other.
When a buyer wants to purchase an item from a supplier's punchout catalog, they initiate a cXML message to the supplier's website. The message contains information about the buyer's procurement system and the items that the buyer wants to purchase.
The supplier's website then authenticates the buyer and displays the requested items in the buyer's shopping cart. The buyer can then browse the catalog, add items to their cart, and edit their order.
Once the buyer is finished shopping, they can submit their order to the supplier's website. The supplier's website will then process the order and generate a cXML purchase order message, which will be sent back to the buyer's procurement system.
The buyer's procurement system will then process the purchase order and send it to the supplier through cXML. The supplier will then fulfill the order and ship the goods or provide the services to the buyer.
Benefits of using punchout catalogs
Punchout catalogs offer a number of benefits for both buyers and suppliers, including:
Streamlined procurement process: Punchout catalogs can help buyers to streamline the procurement process by eliminating the need to manually enter product information into their procurement system. This can save time and reduce the risk of errors.
Enforced procurement policies and procedures: Punchout catalogs can help buyers to enforce their procurement policies and procedures, such as by requiring approval for all purchases over a certain amount.
Increased sales: Punchout catalogs can help suppliers to increase sales by making it easier for buyers to purchase their goods and services.
Improved customer satisfaction: Punchout catalogs can help suppliers to improve customer satisfaction by providing a seamless and efficient purchasing experience.
Reduced operational costs: Punchout catalogs can help suppliers to reduce their operational costs by automating the processing of orders.
Conclusion
Punchout catalogs are a valuable tool for both buyers and suppliers. They can help to streamline the procurement process, reduce errors, enforce procurement policies, increase sales, improve customer satisfaction, and reduce operational costs.
If you are a buyer or supplier who is not currently using punchout catalogs, I encourage you to learn more about how they can benefit your organization.