Punchouts are helpful in various industries. Yet, their operation isn't always clear, especially for those outside IT. While their benefits are often discussed, knowing how they work is crucial for decision-makers considering a new punchout system.
Basics of Punchout Technology:
Don't worry about the complex coding and testing - that's for specialists. The fundamental idea of punchout catalog technology is straightforward. Essentially, punchouts use different languages to improve purchasing processes. The two main languages are cXml and OCI. Here's a brief overview of each and how they enhance punchout catalog technology.
The Overall Goal of Punchouts:
Punchouts emerged as a solution to inefficiencies in the procurement process. In the 90s, companies transitioning from manual to electronic procurement realized that computer-generated purchase orders didn't significantly speed up the process. The early electronic orders still depended on manual catalogs, requiring procurement clerks to sift through paper catalogs and contact supplier sales departments for stock checks. Punchouts were developed to create a more efficient procurement system, integrating electronic data interchange to streamline the process.
What are Punchouts?
Punchouts are integrations between a vendor's catalog and a buyer's E-procurement system. They allow buyers to browse the vendor's electronic catalog, choose products, and send a 'wish list' for approval and purchase order processing. This ensures that items are in stock, avoiding backorders due to delayed E-procurement approvals. The buyer's experience with punchouts mimics browsing a supplier's website, complete with product descriptions, images, and pricing, including negotiated rates. Punchouts utilize CXML messages and extrinsic elements to enhance communication between the procurement application and the vendor's system. This leads to streamlined invoice documents and accurate punchout order messages, leveraging the benefits of CXML in procurement processes.
Systems Integration Options for Punchouts
Punchouts use common computer languages for easy integration. E-procurement systems typically support multiple technologies. When buyers are ready to order, documents are sent using Electronic Data Interchange (EDI). This process is part of the broader supply chain management, ensuring seamless communication of business documents.
CXML Punchout Technology
CXML, derived from XML (Extensible Markup Language), is designed for handling various data types, especially commercial transactions. XML is readable by both machines and humans, facilitating application integration. CXML, or Commercial XML, focuses on commercial transactions, like cataloging data and purchase orders. It's used for electronic documents in procurement but not for storing items like email addresses.
How CXML Standard Helps with Punchouts
CXML facilitates integration between systems. It uses cookies to track user sessions during the punchout process. When buyers finish selecting items, a CXML document is generated. This integration requires initial setup documents and may involve configuring CXML parameters to ensure compatibility. Modern E-procurement systems can handle various CXML versions, aiding checkout and purchase order document creation.
Different CXML Document Types
In procurement, every product in a vendor's catalog is associated with a CXML product description. This description includes detailed information like product specifications, pricing, and availability. By using CXML, vendors ensure that the information is structured in a way that's easily interpretable by the buyer's E-procurement system. This standardized format simplifies the process of comparing products and making informed purchasing decisions.
Purchase Orders and CXML
When a customer decides to place an order, their system generates a CXML purchase order document. This document is a formal communication that includes crucial details such as item quantities, agreed prices, and unique identifiers for each product. The use of CXML in this stage streamlines the communication of business documents, minimizing errors and speeding up the procurement cycle.
CXML Punchout and Buyer Activity Tracking
The CXML punchout process is particularly beneficial for tracking buyer activity during the procurement process. When a buyer navigates through an E-commerce hub using a CXML punchout, their actions, such as item selections and quantity changes, are recorded. This data is crucial for understanding purchasing patterns and can be used to tailor the procurement experience in future interactions.
Providing Specific Information with CXML
CXML also plays a vital role in communicating specific information necessary for the completion of a transaction. For instance, during the checkout process, the buyer’s system sends a CXML order injection containing the buyer's shipping address and email address. This ensures that all relevant details are transmitted accurately and securely, reducing the likelihood of errors in the supply chain.
Enhancing E-Procurement with CXML Capabilities
CXML capabilities extend beyond just order processing; they include handling error messages and configuring default values in the E-procurement system. This ensures a seamless and efficient procurement experience, minimizing downtime due to application integration issues or CXML errors.
CXML documents are integral at various stages of the procurement process, from viewing the product catalog to placing an order. By leveraging CXML's structured format and capabilities, businesses can achieve a more efficient, accurate, and user-friendly procurement process
What is the OCI Document Language for Punchouts?
OCI Explained
OCI, or Open Catalog Interface, is a key component in the realm of procurement systems, particularly in facilitating efficient external procurement processes. It differs from cXml and is common in SAP systems but can be adapted for non-SAP systems to ensure compatibility, enhancing customer integrations. OCI allows the buyer's procurement system to access the supplier's catalog directly, a crucial step in buyers' procurement strategies.
The protocol sends a list of cart items, resembling a shopping list, back to the buyer's system. This list includes catalog line items, item configuration, item level, and item quantity, essential for maintaining accurate customer records. Buyers then place a punchout order or punchout order request using Electronic Data Interchange (EDI), a format less user-friendly than XML as it's designed for machine readability and requires translation by specific software, posing challenges in the customer save action.
cXml and OCI in Punchout Systems
Both cXml and OCI offer robust solutions for punchout systems in procurement, catering to the needs of customer organizations. Despite potential compatibility challenges, like those seen between different operating systems, industry standards and integration tools like software patches help bridge the gap. These technologies enable communication between various procurement systems, including those of buyers and suppliers, thus facilitating a seamless punchout order process.
In a cXml punchout session, customer integrations are managed efficiently, offering a smooth experience to typically customers. Issues like a bug on customer login or managing customer records are meticulously addressed to ensure a seamless initial user connection. ControlHub, as a next-generation procurement software, utilizes both cXml and OCI, providing a user-friendly interface and effective management for client users in their external procurement processes. This integration ensures that the procurement systems are not only efficient but also adaptable to various item configurations and catalog line item requirements.
