Why Institutional Buyers want PunchOut Catalog for their Procurement Process
Institutional buyers such as universities and corporations are looking for a hasslefree way to purchase products through their procurement system. Unlike B2C buyers, the orders of institutional buyers are large and require approval from the management. A PunchOut catalog is designed to simplify their procurement process. It makes easier for them to purchase any item from the supplier. SAP, Oracle and Coupa are some of the popular vendors that provide PunchOut services. So whether you use SAP or Oracle Procurement PunchOut, buyers will reap the following advantages.
Guarantees Contract Compliance B2B transactions commonly suffer from poor contract compliance. Many times, noncontract items are purchased inadvertently. In order to resolve this issue, users should use a SAP or Coupa PunchOut enabled site that allows access only to preapproved suppliers. You can view only those products that are under your contract. So there is no chance of contract leakage that includes buying from a non-contract source. Products with pre-negotiated pricing are only visible through PunchOut catalog.
Eliminates Rogue Spending As we all know how maverick or rogue spending can have a negative impact on your company’s bottom line. However, if you incorporate PunchOut protocol into your procurement process, rogue spending can be easily avoided. This is because,
the buyer does not have access to products that are outside the pre-negotiated catalog. He doesn’t have access to a list of suppliers and vendors that are not being used through his procurement system. PunchOut ensures that purchasing is never done outside the pre-established rules, thereby making the procurement process maverick proof.
Automates Order-to-Invoice Process The PunchOut user as well as the supplier no longer have to communicate with each other via email. They can now exchange orders and invoices electronically, which helps to eliminate errors, save cost and time. It helps to streamline operations and process payments faster. From the buyer’s perspective, electronic exchange ensures faster lead time for purchase.