eprocurement fundamentals background

Aug 23, 2020 | Trends and Research

The eProcurement Fundamentals

Aug 23, 2020 | Trends and Research

What is eProcurement and why does it matter to my business? Many suppliers and customers still conduct B2B transactions through the old school methods of manual catalogs and phone orders. Because eProcurement has not been globally adopted for all indirect supply chains, it is understandable that some businesses may not be familiar with the terminology, process flow, and benefits of utilizing eProcurement services. eProcurement makes buying and selling in a B2B environment much easier and can be a value add for both suppliers and customers. It is important to understand the basics around eProcurement to maximize the value potential for your organization.

Online shopping has disrupted the consumer retail industry as of the last 2 decades. It is becoming more common for B2B transactions to take place in a similar setting. eProcurement software services such as SAP Ariba, Oracle, Coupa, Jaegger and Workday, amoung others, have changed the way that businesses handle their indirect spend (Expenditures that are not used directly for a finished item or service). It is important for both suppliers and buyers to adapt in a changing market. As more and more companies begin to use eProcurement services, it is crucial that those companies suppliers adapt with them.

eProcurement services allow buying organizations to manage their spend easier, select preferred vendors, and simplify the buying process. The benefits of eProcurement for the buying organization are plentiful, but this doesn’t mean that the trend toward eProcurement doesn’t have benefits for suppliers too.

Suppliers have the opportunity to become preffered suppliers. However, in order to be the buying organizations preffered supplier, you will need to integrate with their eProcurement system. Thats where PunchOut Catalogs come into the picture. 

PunchOut Catalogs enable buyers to temporarily leave their eProcurement system to shop a supplier catalog on the supplier’s website. A PunchOut connection will facilitate the transfer of the buyer credentials into the supplier site and the return of catalogs items back to the eProcurement system to complete the checkout process.

Want to learn more eProcurement terminology? Check out our PunchOut Procurement Dictionary for all you need to know!

The Power of PunchOut Connectivity for Suppliers

PunchOut connectivity can turn a supplier into a preferred supplier; but that isn’t the only supplier advantage of a PunchOut enabled website. Along with becoming a preferred supplier, sellers will have the opportunity to set specific customer pricing, use up-sell and cross-sell tactics, and automate documents such as Purchase Orders, Advanced Shipment Notices, and Invoices. These advantages can set you apart from your competitors while boosting your sales and increasing your operational efficiency.

PunchOut is the future of B2B commerce & can be a driving force in outselling your competitors

A supplier that is already PunchOut-enabled will be more likely to land large contracts with other buyers that have PunchOut connectivity requirements. At the same time, the sales cycle will be accelerated with the automation of documents such as purchase orders and invoices. Expand your customer reach, increase your sales, and enhance your customer satisfaction with PunchOut capabilities.

 

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PunchOut Procurement Dictionary

eProcurement and PunchOut Integration can be new to many organizations. However, it is important to have a solid understanding of these concepts both as a buyer and supplier. We prepared a list of terms to get you familiar with the space. Let us know in the comments...

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