A Punch out catalogue is a live and interactive transactional website which allows buyers to access securely their supplier by use of an existing e-procurement system. Using a punch out system is the latest procurement technology. The buyer uses the website to search for items before filling in their requisition.
This requisition is then pulled back into the procurement system of the buyer in real time. The e-procurement system converts this information to a requisition which is then processed into a purchase order and sent back to the supplier.
The hub of communication for punch out catalogue is a universal standard language called Commerce Extensible Markup Language (cXML). This language is standardized and allows the electronic transaction and procurement to be completed quickly and in an efficient manner.
Why punch-out catalogues are preferred for online business transactions
Ease of use
When a buyer enters their credentials into a punch-out catalogue, their credentials are automatically transmitted so as to authenticate the customer. The credentials are used to identify the buyer and the individual who is logged into the system.
The buyer can then add the items that they wish to purchase to an online shopping cart. When done, the buyer simply clicks the checkout button, and they are transferred back to the e-procurement system.
Reduces maintenance procedures
When a supplier uses a punch out catalog system, there is no need for them to keep updating the hosted catalog systems for the various buyers. All the buyers can simply connect to the existing catalog and get the information about the existing products and prices.
Gives timely and accurate information
Since the punch out catalogue is maintained at one location, the information on product price, discount, shipment, and availability of products can be easily updated to the shortest time possible. If a product is discontinued that information is updated and can be seen by the buyer instantly
Use of Electronic Invoices and Purchase Orders
Punch out catalog allows the seller to receive electronic invoices and purchase orders of the purchased goods in good time. The system also enables the buyers to generate easily the POs for the purchased items. This means that the supplier gets paid in good time and eases the work of debt collectors.
Improved Purchasing Experience
Punch out catalog is similar in appearance to any existing website, this gives the buyer a look that they are accustomed to and, therefore, makes it an easy experience as opposed a lot of paperwork that would have otherwise been used.
Statistically understanding a punch out catalogue creates a unique relationship between the customer and the seller. Clients get paid faster and at the same time have control over their inventory. This flexibility in using the system makes the buyer satisfied and is less likely to look out for other competitors.