Punchout Project Implementation

In the modern landscape of digital commerce, the integration of e-procurement systems with e-commerce solutions stands as a pivotal step towards efficiency, transparency, and streamlined processes. At the heart of this integration lies the mechanism known as punchout, a method designed to bridge the gap between e-procurement systems and e-commerce solutions. While the future of punchout is very promising, the journey towards successful integration is not without its challenges.

As you embark on the integration of your customers’ e-procurement system with your Sana webstore, it's crucial to be aware that this process involves coordination among various parties. The success of this endeavor relies on the seamless collaboration of key stakeholders, such as Sana webstore owner, Sana Commerce representative, e-procurement system owner, punchout service provider, etc.

Building and maintaining punchout integrations can be challenging for businesses, which is why many turn to third-party specialists like Sana Commerce. Sana Commerce has dedicated resources to build, maintain, and scale punchout integrations. We also have a pre-built connector between Sana Commerce Cloud and e-procurement systems that uses InstaPunchout as a punchout service provider which allows integrations to be rolled out seamlessly and quickly.

Involved Parties

These are the key stakeholders to be involved in the project implementation to integrate the e-procurement system with Sana Commerce Cloud.

  • Punchout merchant (supplier): this is the owner of a Sana webstore with an ERP system connected to it.

  • Punchout buyer: this is a customer of a Sana webstore owner who has an e-procurement system and wants to connect it to the supplier’s Sana webstore using InstaPunchout.

  • InstaPunchout representative: a punchout vendor and service provider that will authenticate the punchout accounts from the e-procurement system to the Sana webstore and manage the sales document workflow between the Sana webstore and the e-procurement system.

  • Sana Commerce representative: a representative of Sana Commerce. The person who will be involved in the punchout project implementation from Sana Commerce. This can be, for example, a Sana Commerce product specialist or an e-commerce consultant.

  • ERP partner: It may be required to involve an ERP partner of the e-commerce merchant (supplier), but this is not always necessary. For example, there are customizations in the ERP system that must be considered during project implementation, and if the e-commerce merchant (supplier) cannot make the necessary configurations and changes themselves.

  • E-procurement system implementation partner of a buyer: It may be required to involve the buyer’s partner who implemented the e-procurement system for them, but this is not always necessary. For example, when the e-procurement system is very complex, and the buyer cannot make the necessary configurations and changes themselves.

Things to Consider and Potential Challenges

Since there are different parties and systems involved in the integration process, there are many things to consider, including functionality, technical details, as well as being aware of potential challenges that may arise during project implementation.

  • Complexity of integration: One of the main challenges is the complexity of integrating different systems. E-procurement systems and e-commerce solutions often have different architectures, use different data standards and technologies.

    The majority of modern e-procurement systems use either cXML or OCI formats. Sana’s punchout connector supports both protocols and data formats potentially allowing Sana Commerce Cloud to be integrated with all major e-procurement systems, such as Jaggaer, Coupa, SAP Ariba, Microsoft Dynamics, Oracle NetSuite, GEP, etc.

    Although these are standardized data formats, their implementation may differ from system to system. These implementation differences often lead to compatibility and mapping challenges when buyers and suppliers connect their systems.

  • Security: Securing the integration of e-procurement systems and e-commerce solutions remains a critical concern and requires a comprehensive approach. When it comes to online transactions, there is a critical need for robust security measures to protect sensitive data and mitigate potential risks.

    • Secure communication and data encryption: Since punchout transactions involve the exchange of sensitive procurement data between multiple systems, communication must take place over a secure Internet connection. Sensitive data must be encrypted.

      Ensuring end-to-end encryption, implementing strong authentication mechanisms, and adhering to industry standards are essential steps in safeguarding against potential breaches.

    • Embedding the Sana webstore into the e-procurement system: Some e-procurement systems can embed the Sana webstore using an iframe, such as SAP Ariba. This allows buyers to make purchases without leaving their e-procurement system. If you need to embed the Sana webstore into the e-procurement system, you must tell your Sana Commerce representative from which domain the e-procurement system will do this, so that Sana Commerce can authorize access from that domain.

  • Accounts: The supplier must create shop accounts for buyers in Sana Admin. These accounts must be created in both InstaPunchout and Sana Admin and must match based on the buyer's e-mail address. The supplier can easily import all accounts to Sana Admin. The mapping between buyers' accounts in the e-procurement system and shop accounts in Sana Admin must be configured in InstaPunchout.

    For more information, see Buyer Authentication in the Sana Webstore.

  • Data management, mapping, and synchronization: Maintaining accurate and real-time data synchronization is paramount. Inconsistencies can lead to errors in procurement, order processing delays, and ultimately, dissatisfied stakeholders. Ensuring data consistency across systems requires sophisticated data mapping and synchronization protocols. This requires the involvement of both the supplier and the buyer. You can see a few examples below:

    • Product IDs: If the buyer uses their own product IDs, a mapping or cross-reference table must be created. The buyer and supplier should work together to create an overview of the product IDs. If only one or a few buyers have their product IDs, then perhaps the supplier's ERP system is the best place to create this mapping, for example by using a cross-reference table. If there are many buyers with different product IDs, then InstaPunchout can be the best place to create this mapping. Note that with future assortment changes, this information must be updated as well. The supplier needs to map the product IDs, and depending on the chosen solution, either the supplier or InstaPunchout must implement the necessary changes.

    • Customer assortment: A customer assortment in the supplier's ERP system must be configured to contain all products the buyer can order. In the buyer's e-procurement system, an assortment containing all products the supplier offers should be available. Both assortments should be actively maintained to avoid ordering products that are not available in one of the assortments. Although missing products should be an exception, it would be good for the supplier and the buyer to discuss how to avoid this scenario.

    • Tax: Taxes should be considered and properly configured. If the customer is tax-exempt and tax is included in the sales documents, this may not work.

    • Units of measure: The units of measure for the product can be different in the buyer's e-procurement system and supplier's ERP and therefore need to be mapped. The supplier must create an overview for the mapping and provide it to InstaPunchout for implementation. Note that this mapping can be different per buyer, which is also the reason to have this mapping in InstaPunchout and not in Sana Commerce Cloud. If the unit of measure does not exist in the buyer's e-procurement system, the default unit of measure will be used, usually pieces. When the order is confirmed, InstaPunchout will retrieve the original unit of measure from the original order request (from Sana Commerce Cloud to the e-procurement system) and return it to Sana to ensure that no errors occur when processing the order in Sana.

    • UNSPSC: The UNSPSC codes that are used to classify goods and services can be included in punchout. They can be added to products using product attributes in the supplier’s e-commerce system, for example.

Strategies for Successful Integration

To successfully integrate an e-procurement system with an e-commerce solution requires a combination of strategic planning, technical expertise, and effective execution. Here are several strategies to facilitate a smooth and successful integration process:

  • Thorough requirements analysis: Before embarking on integration efforts, conduct a comprehensive assessment of your organization's procurement needs, existing systems, and integration requirements. Define clear objectives, identify key stakeholders, and establish measurable success criteria for this project.

  • Collaboration: Foster open communication and collaboration between all stakeholders involved in the project. Establishing a shared understanding of goals, timelines, technical requirements, and feedback mechanisms to address concerns and resolve issues can facilitate smoother project implementation.

  • Data mapping: Ensure consistency in data formats and structures between the e-procurement system and e-commerce solution to facilitate smooth data exchange. Implement data mapping and transformation processes to eliminate differences in data schemas and ensure accurate data exchange.

  • Security: Prioritize security measures to protect sensitive procurement data exchanged between systems.

  • Testing: Conduct thorough testing and validation of the project to identify and address any issues or inconsistencies before deployment. We recommend testing the implementation of each feature during project development, for example, order confirmation, and testing the entire integration at the end of the project to make sure everything is working properly.

  • Scalability and future-proofing: Think about how to implement the project with scalability and future growth in mind. Anticipate changing business requirements and expansion of procurement needs or enhancements.

  • Continuous monitoring and optimization: Integration is not a one-time event but rather an ongoing process. Continuously evaluate the effectiveness of the integration and identify opportunities for optimization and refinement.

By following these strategies and best practices, organizations can overcome the challenges of integrating e-procurement systems with e-commerce solutions and unlock the full potential of digital procurement processes.