SAP Ariba PunchOut - What, When and How

1> What is the PunchOut process:

A PunchOut catalog is a catalog that is built within a supplier’s e-commerce portal but is accessible by buyers who are using their own organization’s procurement applications to buy. This entire process relies upon a configuration system that redirects buyers from their purchasing system to the supplier’s website. The buyer can search, compare, and choose what they want from the supplier's site. Once chosen and checked out, the system redirects back to the buyer-side application for possible approval of the purchase requisition and actual creation of the order.

2> When is the need for a PunchOut engagement:

PunchOut stands out compared to the CIF catalog if the categories in scope are gifts, office supplies, MRO products, or any other category that involves hundreds or thousands of items. And, especially when there are frequent fluctuations in product prices and availability. When the supplier in scope provides configurable services, adopting PunchOut makes it simple for buyers to configure requirements online, bringing down the need for manual intervention. Printing, marketing materials, and build-to-order equipment are some of the prominent examples.

Maintenance of CIF catalogs needs manual updates either from the supplier or Buyer side, whereas PunchOut allows suppliers to perform all updates centrally, only on their side. They have greater control to keep up with the price/availability changes. The entire engagement saves effort, time, and money by adopting an efficient process.

3> How to achieve an efficient SAP Ariba PunchOut setup:

I will talk about some of the technical details in my follow-up articles, but here are some of the core principles to adhere to, while working in an SAP Ariba PunchOut project.

• Start early with aligned resources: Have an early assessment of the supplier's technical capability and start engaging with their IT stakeholders. Mobilize your internal change management, and connect with SAP Ariba to get the catalog specialist on board to assist the supplier IT team.
• Focus on ease of use: The goal of the project is to make the experience of requesters uncomplicated and to give them an enhanced buying experience. Ensure that the navigation is simple with fewer clicks. Ensure the screens have all relevant information that helps users while purchasing. Leverage SAP Ariba Guided Buying to improve end-user experience further.
• Testing, testing, and testing: I can't stress enough the need of testing the system every step of the way. First, configure the complete flow in the test realm. Test the catalog upload process via Ariba Network. Frequently test the punchout environment itself to ensure it is robust and doesn't break down often. Test by creating orders using punchout items to check that you receive all correct information from the?supplier side. Finally, perform extensive end-to-end testing to ensure your backend (ECC or S/4 HANA) integration works fine. Do create invoices, and receipts (if in scope) and check the entire procure-to-pay process works correctly.
• Create support materials for requesters: Proactively create a step-by-step guide and all necessary support documents to help requesters to navigate through the systems. Creating some audio-visual guides and training materials helps to provide further clarity. Early efforts towards preparing an end-user support system ensure that many of the questions from users upon go-live are already addressed.