B2B ecommerce refers to online transactions between businesses, such as a retailer purchasing inventory from a wholesaler. These transactions often involve negotiated pricing, approval workflows, and integration with eprocurement systems.

One common feature in B2B ecommerce is punchout, which allows companies to connect their eprocurement systems directly to a supplier’s ecommerce website in the B2B context.

An eprocurement system is a software that companies use to manage and automate the purchasing of goods and services. It typically includes tools for managing suppliers, generating and approving purchase orders (POs), and integrating with financial and inventory systems.

This real-time connection with supplier websites through punchout enables employees to access a supplier's storefront from within their eprocurement system without needing to log in or register manually, streamlining the B2B purchasing experience.

When an employee "punches out" to a supplier’s site, they're automatically authenticated and redirected to a personalized shopping experience tailored to their organization’s commercial agreement. This includes customized catalogs, pricing, and shipping terms.

Not all purchases made through eprocurement systems use punchout. However, when punchout is available, it provides users with seamless access to a preferred supplier's store while preserving the internal procurement process for approvals and record-keeping.

Here's an overview of a typical punchout workflow:

1. Login: An employee logs in to their company’s eprocurement system and selects a supplier ecommerce website to "punch out" to (typically by clicking the supplier’s logo).

2. Browsing and adding items: The employee is redirected to the supplier’s ecommerce website and automatically logged in using the credentials provided by the eprocurement system.

   The supplier’s ecommerce website may be customized for the employee’s company, with a unique homepage, product selection, and pricing based on the applicable trade policy.

   The employee can browse or search the supplier’s catalog and add items to their shopping cart.

3. Checkout: The employee clicks the checkout button on the supplier's site and is redirected to their eprocurement system. Rather than going through the regular checkout flow on the supplier's site, the shopping cart is sent back to the eprocurement system.

4. Purchase order: The employee can create a purchase order from the cart in their eprocurement system and submit it for approval.

Punchout integration in eprocurement systems offers multiple benefits, as highlighted below:

• Improved efficiency: Punchout simplifies the buying process, allowing procurement teams to work within their existing systems while accessing real-time, accurate supplier catalogs.
• Enhanced user experience: Unlike traditional eprocurement systems, which often have limited interfaces, punchout leverages the supplier’s ecommerce storefront to offer a richer, more intuitive shopping experience.
• Dynamic, customized content: Suppliers can present personalized catalogs, pricing, and content based on individual agreements with each buyer. This is especially useful for large or frequently changing inventories.
• Seamless integration: Punchout supports a smooth transition between the eprocurement system and the ecommerce platform, ensuring consistent record-keeping and reducing manual steps in the purchasing process.