The first thing that happens to initate a connection between buyer and seller is called a punchout setup request. The punchout setup request is sent from the buyer’s eProcurement system to a punchout gateway that translates the request, validates the user credentials, and logs them into the seller’s Punchout store. Once in the buyer is successfully logged in, they are free to shop the catalog and build a cart.

After adding all desired items to the cart, they will begin the checkout process. This is where cXML and the Punchout process provide most of the value. Instead of a normal checkout process, the cart items are returned to the buyer’s eProcurement system via cXML. In the eProcurement system, the buyer will go through all internal approval processes before a purchase order is sent back to the supplier, again via cXML.

Martha works in the purchasing department of XYZ Inc. XYZ utilizes Ariba’s eProcurement software to manage indirect spend and facilitate B2B purchasing. ABC Inc. sells office supplies and has a contract with XYZ to provide items at a discounted price. Because XYZ wants all purchasing managers to buy the discounted items, they require ABC to be Punchout-enabled and listed as a preferred supplier in their Ariba eProcurement system. The PunchOut Catalog connection that is set up between Ariba and the supplier’s ecommerce site is based on cXML.

When Martha wants to purchase office supplies for XYZ she logs into Ariba and selects to shop the ABC catalog. Behind the scenes, Martha is generating a “cXML Punchout Setup Request” and her user credentials are being verified via the Punchout Gateway. Once she is granted access to the catalog, she will be able to add items/services to the cart at the contract price.

When Martha goes to checkout, her cart items are transferred back to Ariba via cXML. Angela, Martha’s manager, is then able to approve the cart items for purchase in Ariba. Once the approval process is complete, a purchase order is sent to ABC, again via cXML. ABC will then ship items to XYZ and communicate advanced shipment notices (ASNs) and invoices using cXML and a PunchOut Gateway.