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Punchout from iProcurement to Supplier

Posted on January 16th, 2013 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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WHAT IS PUNCHOUT (also known as Supplier PunchOut)

Punchout provides the ability to link out from a procurement application (iproc ) to a vendor's eCommerce site to shop, place items into a cart, and return that cart to their own procurement application to continue purchasing within their designated workflow. The resulting purchase order is then sent back to the supplier for order fulfillment.

This is a mechanism by which buyers/requestors can navigate to suppliers website directly from iProcurement.

Punchouts are, typically, for expense items such as office supplies, but are often leveraged by maintenance and IT organizations.

WHAT ARE THE ADVANTAGES OF PUNCH OUT?

Some advantages are:

  • The ability to cost effectively re-use suppliers existing transactional websites to provide custom content to individual buyers.
  • The flexibility which allows suppliers to control product information to ensure real-time quality content, including price and availability.
  • Punch out is a low-cost way to provide easily customised content for many buyers, leading to economies of scale, enhanced customer experience, and reduced customer support costs.
  • Buyers no longer need to manage catalogue content.
  • Punch out enables requisitioners to access supplier catalogues for products / services that reside within the supplier's website.
  • Punch out eliminates the need for the supplier to send electronic catalogues to buying organisations.
  • Punch out reduces buyer and supplier error.
  • cXML is the most widely adopted Business to Business protocol today.

BASIC FLOW

More or less , these are user steps in punchout process irrespective of any model ( as discussed below) ;

  1. The requester in iProcurement or buyer in Exchange clicks a link to the external catalog (punchout) site. Punchout links are available from the Shopping home and
    Search Results pages.
  2. The punchout from application (iProcurement or Exchange) sends the login request to the catalog site.
  3. The punchout to application (Exchange or the supplier site) authenticates the requester or buyer.
  4. The punchout from application redirects the requester’s or buyer’s browser to the catalog site.
  5. The requester or buyer browses or searches for items on the external catalog site and completes shopping on the site.
  6. Via the requester’s or buyer’s browser, the punchout to application returns the shopping cart with the items to the punchout from application.
  7. The requester or buyer completes the checkout process for the items in the shopping cart, and the punchout from application processes the order.

THE PUNCHOUT MODELS

The Punchout Models available are:

  • Model 1: Punchout from Oracle iProcurement to Oracle Exchange (XML)
  • Model 2a: Punchout from Oracle iProcurement Directly to Supplier-Hosted Catalog (XML)
  • Model 2b: Punchout from Oracle iProcurement Directly to Supplier-Hosted Catalog(cXML)
  • Model 3a : Punchout from Oracle Exchange to Supplier- Hosted Catalog (XML)
  • Model 3b: Punchout from Oracle Exchange to Supplier- Hosted Catalog (cXML)
  • Model 4: Punchout from Oracle iProcurement to Supplier- Hosted Catalog via Oracle Exchange (XML)
  • Model 5: Punchout from Oracle iProcurement to Supplier- Hosted Catalog via Oracle Exchange (cXML)

Model 1: PUNCHOUT FROM ORACLE IPROCUREMENT TO ORACLE EXCHANGE (XML)

In model 1, the supplier loads catalog items directly to Oracle Exchange.

The catalog administrator then sets up Oracle iProcurement to use Oracle Exchange as the punchout hub.

How this works:

  • When the user clicks on a punchout link to Oracle Exchange, Oracle Exchange authenticates the requester and returns a response.
  • If the authentication is successful, the user is redirected to the Oracle Exchange site to search for and add items.
  • When the requester finishes adding items to the Oracle Exchange shopping cart, Oracle Exchange returns these items to the requisition.
  • The requester then submits the requisition.

The illustration below shows Model 1.

model1

If you see above diagram , Oracle Exchange can be setup as an aggregator site, where requesters can have access to items from different suppliers.

In this model benefits for the suppliers include:

  • Suppliers only need to load their catalog items once on Oracle Exchange and can reach many Oracle iProcurement customers in addition to the buyers already registered on Oracle Exchange.
  • Suppliers can make use of the functionality offered by Oracle Exchange to control pricing.

MODEL 2A and 2B: PUNCHOUT FROM ORACLE iPROCUREMENT TO SUPPLIER HOSTED CATALOG (XML & CXML)

In models 2a and 2b, the supplier hosts the catalog at their own site or web store. The catalog administrator sets up a punchout catalog to use the supplier as a punchout site.

  • When the requester clicks on a punchout link to the supplier site, the supplier authenticates the requester and returns a response.
  • If the authentication is successful, Oracle iProcurement redirects the requester to the supplier site to search for and add items.
  • When the requester completes adding items to the supplier shopping cart, the supplier site returns the shopping cart items to Oracle iProcurement.
  • The requester then submits the requisition.

The illustration below shows Models 2a and 2b.

MODEL2

 

MODEL 3: PUNCHOUT FROM ORACLE iPROCUREMENT TO SUPPLIER HOSTED CATALOG THROUGH ORACLE EXCHANGE (XML)

In this model, the supplier hosts the catalog at their own site or web store.

  1. When the user clicks on the punchout link, the requester is taken directly to the supplier site.
    • Although behind the scenes, the access is through Oracle Exchange. Using Oracle Exchange for the punchout simplifies the initial setup process and the authentication and maintenance of the punchout.
  2. The supplier must set up a punchout from Oracle Exchange to their site.
    • To setup access to the supplier site through Oracle Exchange, the catalog administrator needs to download the supplier punchout definition from Oracle Exchange.
    • Downloading the supplier punchout definition seeds the punchout definition from Oracle iProcurement to the supplier site through Oracle Exchange, without requiring the catalog administrator to perform manual setup.
  3. The requester clicks on the punchout link, Oracle Exchange authenticates the requester, and sends a punchout request to the supplier.
  4. The supplier site then responds to Oracle Exchange, and in turn Oracle Exchange forwards the supplier site response to Oracle iProcurement .
    • If successful, the requester is redirected to the supplier site for shopping.
  5. When the requester completes adding items to the supplier shopping cart, the supplier site returns the shopping cart items to the requisition. The requester then submits the requisition.

The illustration below shows Model 3.

MODEL3

MODEL 4: PUNCHOUT FROM ORACLE IPROCUREMENT TO SUPPLIER HOSTED CATALOG THROUGH ORACLE EXCHANGE (CXML)

In Model 4, the supplier hosts a cXML catalog at its own site or web store. Similar to Model 3, the requester accesses the supplier site (behind the scenes) through Oracle Exchange.

The supplier must set up a punchout from Oracle Exchange to its site, and the catalog administrator then downloads the supplier punchout definition from Oracle Exchange when setting up the punchout catalog.

  • The requester clicks on the punchout link, Oracle Exchange then authenticates the requester, and sends a punchout request to the supplier.
  • The supplier site then responds to Oracle Exchange, and in turn Oracle Exchange forwards the supplier site response to Oracle iProcurement .
    • If successful, the requester is redirected to the supplier site for shopping.
  • When the requester completes adding items to the supplier shopping cart, the supplier site returns the shopping cart items to Oracle iProcurement .
  • Oracle iProcurement then redirects the shopping cart to Oracle Exchange, where Oracle Exchange converts the shopping cart from cXML to XML and returns the items to Oracle iProcurement . The requester then submits the requisition.

The illustration below shows Model 4.

Model4

ANALYSIS OF PRESENT AND FUTURE STATE

Before developing a PunchOut, you need to perform an in-depth analysis of your current system and what is needed to support the "new" process. A few things to note:

Take some important note for the current state:

  • Do you have an existing e-commerce site deployed?
  • Does your site have XML integration enabled?
  • Do you currently receive orders electronically through XML or EDI?
  • How is integration performed with back-end systems?

For the future state:

  • How will the process flow from time of shopping through order placement and fulfillment?
  • Will you need to interface with multiple XML-based procurement applications?
  • How should your concept of a "shopping cart" be modeled in requisition line items?
  • Which model should be best for my company ?

Remember , There is no additional licensing that you need to purchase for using Punchout. Next post will be more focus on setup and troubleshooting.

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