What Is a PunchOut Catalog?

A PunchOut catalog is a supplier's online catalog that buyers open directly from their own procurement or ERP system: they select items at their negotiated prices and transfer the cart back instead of checking out. The purchase order is then created, approved and sent from the buyer's system; shop and procurement system exchange the data via cXML or OCI.

This entry walks through a punchout session step by step, compares cXML and OCI, and explains how punchout differs from a hosted catalog and what Level 1 and Level 2 mean.

Learn More
  • Definition in two sentences
  • Process step by step
  • cXML vs. OCI compared
  • Punchout or hosted catalog

Punchout in Brief

A punchout catalog is a supplier catalog that is hosted by the supplier and opened from within the customer's procurement system. The user selects items in the supplier's shop and transfers the cart back to the procurement system, where it becomes a purchase order once approved.

How a Punchout Catalog Works: the Session Step by Step

The term describes leaving your own system for someone else's and coming back with data. Whatever the protocol, every session follows the same pattern.

  1. Start in the procurement system

    The user begins a purchase requisition or shopping cart and selects a supplier's punchout catalog.

  2. Session setup

    The procurement system tells the shop who is asking and where the cart should be returned. With cXML this is a server-to-server PunchOutSetupRequest; the shop checks the credentials and replies with a PunchOutSetupResponse containing the start address for the browser. With OCI the browser calls the shop directly with login parameters and the HOOK_URL return address.

  3. Selection in the shop

    The user's browser is sent to the shop. There the user sees the assortment agreed for their employer at the negotiated prices and adds items to the cart.

  4. Return of the cart

    Instead of checking out, the user transfers the cart. The shop sends the items back to the procurement system through the browser: as a PunchOutOrderMessage with cXML, as a form with NEW_ITEM fields with OCI.

  5. Requisition and approval

    The procurement system creates a purchase requisition from the items. Account assignment, budget check and approval follow the customer's rules.

  6. Purchase order to the supplier

    Only the approved purchase order goes to the supplier, depending on the agreement as a cXML OrderRequest, via EDI or by email. The supplier recognizes the items by its own part numbers.

Besides creating a new cart, cXML also supports reopening one that has already been returned: with the edit and inspect operations the user can change the cart in the shop or just view it, provided the shop supports this.

cXML vs. OCI: the Two PunchOut Protocols Compared

Punchout is the principle; OCI and cXML are the two common protocols for it. Which one is used is generally determined by the customer's procurement system.

CriterionOCI punchoutcXML punchout
OriginSAPAriba
Data formatHTML form fields (name-value pairs)XML documents with a defined structure (DTD)
Session setupThe browser calls the shop address with parametersServer sends PunchOutSetupRequest, shop replies with PunchOutSetupResponse and start address
AuthenticationCredentials as parameters of the callIdentities and shared secret in the header of the XML document
ReturnHTML form with NEW_ITEM fields posted to the HOOK_URLPunchOutOrderMessage as XML, sent to the procurement system through the browser
Reopening a cartNot defined as a separate operationOperations edit and inspect
Purchase order and follow-on documentsNot part of the standardSeparate documents, such as OrderRequest for the purchase order
Typical procurement systemsSAP SRM, SAP ERP and S/4HANA, many systems in the German-speaking marketSAP Ariba, Coupa and many international e-procurement systems

Punchout Catalog or Hosted Catalog?

With a hosted or static catalog, the product data sits in the customer's system. The supplier delivers it as a file, and procurement checks and approves it. With punchout, the data stays with the supplier.

CriterionPunchout catalogHosted catalog
Where is the product data?In the supplier's shopIn the customer's catalog system
Who maintains prices and assortment?The supplier, continuouslyThe supplier delivers versions, procurement approves them
StrengthsVery large assortments, current availability, configuratorsChecked content, fixed prices, comparison across suppliers in one search
WeaknessesSearch stays within each shop, content changes without approvalMaintenance effort with every update, unsuitable for configurable products
Typical useBroad assortments for C-parts, IT, office and laboratory suppliesNegotiated core assortments and contract items

Punchout Level 1 vs. Level 2

The terms come from the cXML world and describe how deeply the supplier catalog is integrated into the search of the procurement system.

With Level 1, the supplier appears in the procurement system as a single catalog entry. The user has to know which supplier to look at, jumps to the shop's start page and searches there.

With Level 2, the supplier additionally provides index data on items or categories that is loaded into the catalog of the procurement system. The items then show up in the customer's own search next to those of other suppliers. Only a click on a result starts the punchout, and the user lands directly on the matching product or category page in the shop.

CriterionLevel 1Level 2
Entry pointStart page of the shopProduct or category page matching the search result
SearchOnly in the supplier's shopAlready in the search of the procurement system
Effort for the supplierPunchout integrationPunchout integration plus ongoing provision of index data
Comparison with other suppliersOnly after several punchoutsPossible at search result level

What Matters During Rollout

  • The shop's units of measure and material groups have to match the master data of the procurement system, otherwise the items cannot be taken over.
  • Assortment and pricing rules belong in the contract, because the supplier changes the content itself.
  • Time can pass between return and purchase order. Clarify how long the returned prices remain valid.
  • Pass the shop only the user data it needs for the session.
  • Define which user groups see which punchout catalogs and from what value approval is required.

Related Terms and Matching Ovenca Modules

Punchout in Four Points

The essentials for procurement and IT

  • Out and back

    The user leaves the procurement system only to select items. The cart comes back as structured line items.

    • Start from the purchase requisition
    • Selection in the supplier's shop
    • Transfer instead of checkout
  • Two protocols

    OCI transfers form fields, cXML transfers XML documents. Both lead to the same result in the procurement system.

    • OCI in SAP environments
    • cXML with a server-to-server setup request
    • Many shops support both
  • Level 1 and Level 2

    Level 1 leads to the shop's start page. Level 2 makes items findable in the procurement system's own search.

    • Level 1: one catalog entry per supplier
    • Level 2: index data in your own search
    • Punchout straight to the item
  • Complement to the hosted catalog

    Punchout suits large and configurable assortments; hosted catalogs suit checked core assortments.

    • Combine both forms
    • Agree pricing rules contractually
    • Approval in your own system

Punchout Shops and Your Own Catalogs in One Cart

Ovenca connects supplier shops via OCI and cXML and combines their items with imported catalogs.

Central punchout cart
Items from several supplier shops end up in one cart together with catalog and free-text items.
OCI and cXML
Both protocols are supported as equivalent punchout routes.
Access per user
Permission management in the admin area controls which punchout catalogs a user sees.
Multi-level approval
Every cart runs through the same multi-level approval process with comments, whatever its source.
Handover to the ERP
Ovenca hands the approved requisition or order to your ERP via an interface.
Hosted catalogs included
Catalogs in CSV or BMEcat format are imported, validated and, once approved, offered in the same shop.

Punchout Catalog: Questions and Answers

Related pages

Bundle Punchout Catalogs Centrally

We show you how requesters punch out to supplier shops from one catalog shop and how the cart enters your approval process.