At its core, a punchout catalog is a bridge between a buyer’s eProcurement system and a supplier’s e-commerce site. To ensure a reliable connection, a middleware provider like Greenwing Technology helps both parties navigate eProcurement models and the configurations they require.
This collaborative approach ensures both sides get what they need: buyers maintain compliance, and suppliers can streamline sales. Punchout catalogs also have the added benefit of live product data, negotiated pricing, and account-specific rules.
Despite these similarities between integrations, every punchout connection is a little different. Often, these variations are shaped by the supplier’s e-commerce platform, the buyer’s procurement system, and the unique requirements of the purchasing relationship.
After more than 15 years of helping suppliers implement punchout, we’ve noticed that most projects fall into four common eProcurement models: Direct, Blended Systems, Sandwich, and eProhub.
While no two integrations are ever identical, these models help suppliers understand where their situation fits into the equation and what kind of approach will work best.
The Four Types of eProcurement Models
Direct Model
A Direct model is the most common type of punchout integration. In this configuration, the buyer initiates the connection from their eProcurement system, accesses the supplier’s storefront, builds a shopping cart, and then transfers the cart data back to the originating eProcurement platform.
The cart details are transmitted back to the eProcurement system as a requisition, which then proceeds through the buyer’s internal approval workflows. Once approved, the requisition is converted into a purchase order (PO).
Typically, the exchange of cXML purchase orders and invoices occurs within the same platform used by the buyer. However, in some cases, these transactions may be managed outside of the punchout process. There may be situations where either automation is handled manually via email or routed directly to either the supplier’s or the buyer’s ERP system instead.
This straightforward setup gives buyers the familiar shopping experience they expect, while ensuring procurement teams maintain the control and oversight they need.
Blended Systems
The next most common eProcurement model is the Blended Systems model. In this scenario, the buyer utilizes two separate eProcurement systems to complete a single procurement cycle. For example, a buyer might use Ariba for the punchout process while relying on PeopleSoft to manage cXML purchase orders and cXML invoicing.
How does the Blended Systems Architecture Work?
In this example, we will be using Ariba and PeopleSoft to explain the blended systems framework.
A buyer selects a supplier in Ariba and punches out to the supplier’s digital storefront. On the site, the buyer shops as usual, adding items to the cart and returning the cart to Ariba. Whether the purchase order (PO) is created manually or automatically in the second eProcurement system depends on internal processes and system capabilities. In either case, the cXML PO is generated in PeopleSoft and sent to the supplier for fulfillment. Once the order is complete, the supplier can transmit a cXML invoice back to PeopleSoft directly.
How do Companies End Up with Blended Systems?
There are multiple reasons this type of framework happens, including but not limited to:
- Specialization of Systems: one system is easier or more effective at purchasing, while the second is more beneficial for storing purchasing data like POs and Invoicing
- Decentralized technology: international businesses or companies with different subsidiaries may use different procurement systems based on preferences or needs.
- Mergers and Acquisitions: as businesses consolidate, they inherit new technology stacks. This can lead to the use of multiple procurement systems within a single entity.
Sandwich Model
Referred to as the Sandwich model, this architecture situates an eProcurement system between your customer’s ERP system and Greenwing Technology’s middleware. Platforms like Jaggaer, Coupa, and ProcureDesk offer this type of implementation approach.
What does the Purchasing Workflow look like with a Sandwich Model?
Let’s use Jaggaer as an example.
To initiate a purchase, the buyer logs into their ERP system and punches out to Jaggaer. Within Jaggaer, the buyer punches out again to access the supplier’s e-commerce storefront. On the supplier site, the buyer shops as usual, adding items to the cart and returning the cart to Jaggaer. The cart data is then transferred back to the ERP system, where it proceeds through the internal approval workflow, and a purchase order (PO) is generated. The PO is transmitted from the ERP to Jaggaer, which then sends it to the supplier as a cXML PO.
What are the Advantages of the Sandwich Model?
The primary advantage of this eProcurement model lies in the integration between the buyer’s ERP system and the Jaggaer platform. This connection eliminates the need to migrate between systems for different purchasing functions, saving time and reducing complexity.
The eProcurement system’s primary role is to facilitate purchasing, and its streamlined interface often provides a more efficient buying experience, while the ERP manages the broader financial and operational aspects. As a result, buyers can stay within budget constraints and complete purchases more efficiently.
eProhub Model
Is it possible to do a punchout without requiring the punchout SetupRequest connection? The short answer is yes! Our eProhub model is a cXML connection for POs and Invoicing, sans punchout. This is ideal for buyers seeking simplified automation with greater control over expenditures and payments.
Rather than using a traditional cXML punchout workflow, the buyer accesses and shops directly from the supplier’s hosted catalog. Once the order is placed, a cXML purchase order (PO) is generated from the buyer’s eProcurement system and routed through Greenwing’s middleware to the supplier. After the supplier processes the order, the corresponding invoice is created and transmitted back through Greenwing. The buyer then receives the invoice in either their eProcurement or ERP system.
By using the eProhub Model and emphasizing post-order automation, buyers can cut down on processing errors and reduce administrative overhead. The transaction workflow becomes simpler and typically requires very minimal technical involvement.
Ready for Your Next Integration?
Direct, Blended Systems, Sandwich, and eProhub are common eProcurement models we encounter when initiating a punchout integration. While many hybrid procurement solutions exist, their success depends on the buyer’s and supplier’s individual systems and processes.
At Greenwing Technology, we’ve guided countless suppliers through complex integrations that simplify how they sell online. We specialize in helping suppliers streamline their e-commerce integrations and strengthen their relationships with procurement customers. With Greenwing, you can rest assured that your next integration is in expert hands.
Looking to simplify your next punchout implementation and deliver a better experience for your buyers?