March 2022 Benefits of using punch-out catalogues
Accessing a supplier’s product range using a digital system that integrates with the buyer’s procurement software is made possible using a punch-out catalogue. These hosted catalogues allow suppliers to list their goods in a standardized format so that purchasers can easily browse and search or make price comparisons across vendors.
Using a punch-out catalogue allows buyers to make purchases without leaving their own procurement solution, and with digital procurement being increasingly focused on as a key component of the supply chain, being able to access catalogues online can improve procurement processes as well as cost savings.
Punch out catalogues are an easily accessible and versatile way for procurement teams to gain access to the latest pricing, supplier details, and purchasing terms. Having access to this information can facilitate and enhance the relationship between buyers and suppliers in a number of different ways.
Advantages of using a punch out catalogue
Having visibility to supplier information in real-time can benefit both sides. As the punch out method smoothly combines ordering, order tracking, and accounting, the simplified process can improve functions for buyers such as ordering accuracy, and suppliers are able to easily share deals or pre-agreed pricing with their customers.
While the benefits are many for procurement teams, punch out catalogues benefit suppliers in a number of ways too, including:
Online pricing updates; no more manual pricing alerts sent to individual customers
- Price optimisation and guided purchasing can help to increase customer retention
- One time discounts, offers, and promotions can be presented directly inside the purchasing system
- Better financial planning and reporting with easily trackable ordering
- Opportunity to increase revenue with relative upselling
On the procurement side, punch out catalogues provide a versatile buying experience and can be merged with processes like workflow automation and process integrations. While punch out catalogues have been used for many years by large corporations in conjunction with ERP systems, smaller companies are seeing the advantages that come with being able to connect vendor data to buyers, and optimizing the purchasing process.
Automation and streamlined data management can be combined with analysis tools and fully integrated with other software like accounting packages or resource planning solutions. Complete transparency of purchasing data and process automation makes an optimized procurement process with better accuracy and faster operation. Fewer errors and better pricing deals can quickly add up to significant savings, and when combined with data insights from historic transactions, can make a positive impact on account spending.
The information and insights gained from data analysis can be shared with suppliers to uncover mutually beneficial opportunities for cost savings and to head off potential issues before they snowball into a real problem. Strengthening supplier-vendor relationships in this way can help businesses to develop strategic partnerships to identify areas of improvement or assist with process development.
Integrating punch out catalogues into procurement systems brings more agile versatility and transparency to the ordering process. Companies are able to manage their spending and reduce ordering errors by generating requisitions or a purchase order number and having it sent through a pre-set approval route. Things like spending thresholds can be set, and specified recurring orders can be fast-tracked using automated approvals.
For purchasing departments, this means that needed orders can be fulfilled quickly and the need for manual data entry can be eliminated altogether. With updated information that is accessible in real-time, things like shipping delays or lags can be managed to reduce the impact of the supply chain and ensure business continuity.
Punch out catalogues offer unique opportunities not only in financial management, but also in ordering processes, contract management and, most importantly, supplier relationship management.
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