Punchout Level 1 vs. Level 2

Punchout levels typically refer to the levels of integration between a buyer’s e-procurement system and a supplier’s webstore (catalog). These levels determine the depth of integration and the extent to which a buyer can access and purchase products from the supplier’s e-commerce system without leaving their own e-procurement system.

Here is a general description of the punchout levels.

Level 1 Punchout

At this level of integration, suppliers are presented by their logos in the buyer’s e-procurement system. The buyer selects a supplier and is authenticated into the supplier’s webstore by initiating a punchout request. Once on the supplier’s webstore, the buyer can browse the catalog, select products, and add them to the shopping cart. When the buyer is ready to check out, the shopping cart is transferred to the buyer’s e-procurement system for approval and processing.

It refers to the basic level of integration and streamlines the purchasing process by reducing the need for manual data entry. The majority of e-procurement systems support this type of punchout workflow.

Level 2 Punchout

Level 2 integration offers a deeper level of connectivity between the buyer’s e-procurement system and the supplier’s e-commerce system. In addition to the functionality provided at Level 1, Level 2 integration allows exporting the products, including customer-specific assortments, from the supplier's e-commerce system to the buyer’s e-procurement system.

The buyer can search within the e-procurement system and view basic product information. However, product prices and stock availability are not exported and thus are not available in the e-procurement system.

When the buyers punch out, they are taken directly to the product page on the supplier’s webstore where they can see additional product information that can be limited within the e-procurement system. This includes real-time pricing, stock, product characteristics, etc. Buyers can then add products to their shopping cart.

Level 2 punchout is supported by several of the most widely used e-procurement systems, such as SAP Ariba and Jaggaer. It’s important to note that not all e-procurement systems offer this advanced level of integration.

In summary, while both Punchout Level 1 and Level 2 facilitate integration between buyer and supplier to streamline the procurement process, Level 2 offers additional benefits such as exporting products including customer-specific assortments, from the supplier's e-commerce system to the buyer’s e-procurement system and making them searchable.