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SupplierPunchOut Guide

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Printed: July 2010Software Version: 1.0.0

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IContents

© 2010 ProcServe

Supplier PunchOut Guide

Table of Contents

Foreword 0

Part 1 Chapter 1 - Introduction 1

Part 2 Chapter 2 - About PunchOut 2

................................................................................................................................... 22.1 About PunchOut

................................................................................................................................... 32.2 Selecting PunchOut as a Content Delivery Method

Part 3 Chapter 3 - Implementing PunchOut 4

................................................................................................................................... 43.1 Implementing PunchOut

................................................................................................................................... 53.2 PunchOut Requirements for Suppliers

Part 4 Chapter 4 - Providing PunchOut Content 7

................................................................................................................................... 74.1 Level 1 PunchOut - Standard Procurement PunchOut

................................................................................................................................... 74.2 Level 2 PunchOut - Indexed Procurement PunchOut

Part 5 Chapter 5 - Is PunchOut for Me? 9

Part 6 Chapter 6 - Technical Guidance forPunchOut 10

................................................................................................................................... 106.1 Contact Details

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1 Chapter 1 - Introduction

PunchOut enables users of procurement applications to access supplier content for goods or servicesthat are hosted on the supplier’s own website. A link is created between the ProcServe Trading Networkand the supplier's website to enable the buyer to shop on the supplier's website -- this is called aPunchOut link.

This document provides an overview of PunchOut and how it works. It aims to educate readers aboutPunchOut and to help readers understand the benefits of PunchOut and what is required to make awebsite PunchOut capable. It does not describe how to use specific procurement applications oreCommerce network hubs, or give technical details of how suppliers can modify their own websites to bePunchOut capable.

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2 Chapter 2 - About PunchOut

2.1 About PunchOut

PunchOut sites are live, interactive catalogues run through a supplier's own website. If a supplier'swebsite can support shopping baskets for the sale of goods/services, it can be modified to supportPunchOut. This allows buyers to search for goods or services in the supplier's own shoppingenvironment. The shopping basket is then returned to the buyer’s purchase-to-pay or finance system forapproval.

PunchOut eliminates the need for suppliers to send catalogues to buying organizations or ServiceProviders to load and maintain. Instead, suppliers send short index files (a simple, hosted catalogue)that list their goods/services which are referenced on marketplace solutions like the ProcServe TradingNetwork.

PunchOut works by sending messages back and forth between the buyer's network and supplierswebsite, and between applications, often through a Service Provider such as the ProcServe TradingNetwork. PunchOut messages are sent using cXML. cXML is an international standard for sendingmessages between applications and networks, particularly those that operate over the internet.

cXML allows buying organizations, suppliers, and Service Providers to communicate using a single,standard language. cXML is designed specifically for business-to-business (B2B) eCommerce.

Advantages

PunchOut suppliers can link their existing website to the marketplace and catalogue system. Thereare no restrictions on how suppliers display their content as PunchOut is linked directly to thesuppliers' own website. Because the website is managed by the suppliers' systems, they canupdate prices and goods/services from within their own environment directly to their PunchOut site.

Because PunchOut sites are highly configurable, the content displayed to buyers can i) be limited toonly previously agreed-upon contract goods/services and prices, ii) be extended to include a limitedselection of non-contracted line items, iii) or include the full price list of goods/services available fromthe supplier.

Benefits

· enables buyers to access goods or services that are best placed on a website, such asconfigurable items like furniture and IT equipment

· eliminates the need for the supplier to load detailed catalogues into the marketplace· supplier websites can display only previously agreed-upon contract products and prices· removes buyer error associated with pricing and item configuration· uses cXML, the most widely used B2B protocol · leverages XML, the most robust language for describing information

Before deciding to implement PunchOut, the supplier and buyer organization should agree the bestmethod for providing content -- PunchOut or a static catalogue. The method used will be influenced bythe goods/services being purchased and the agreed solution will be implemented in conjunction with theService Provider to ensure the optimal solution.

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2.2 Selecting PunchOut as a Content Delivery Method

The following table lists example categories of commonly procured goods and services, and their optimalcontent provision method. It is possible that more than one PunchOut solution is implemented for aparticular supplier, depending on the goods/services being sold. A travel agency, for example, may selltravel books on their own website but direct the buyer to a travel service provider for selected types oftravel such as rail or air.

Category Content Challenges Optimal Delivery Method

Books and Periodicals · Large number of items· Regular updates, new editions

· PunchOut to supplierhosted website

Chemicals and Reagents · Large number of items · PunchOut to supplierhosted website

· Possible PunchOut to avertical commodity portal

Computers, IT Equipmentand Associated Peripherals

· Highly configurable items· Possible mandatory and

optional associated items


Furniture · Highly configurable items· Possible mandatory and



· Possible PunchOut to a

vertical commodity portal1

Lab Equipment andSupplies

· Requires standardization to beuseful

· Possible mandatory andoptional associated items


Maintenance, Repairs, andOperations

· Requires standardization to beuseful

· Possible mandatory andoptional associated items


Printed materials (businesscards, stationery, etc.)

· Highly configurable items· Variable attributes


· Ideal for online forms

Services (Agency Staff, etc.) · Variable attributes· Possible mandatory and



· Ideal for online forms

Travel · Dynamic pricing· Possible mandatory and



· Supplier can be a travelservice provider

_____________________________1 Vertical commodity portals are gateways, or portals, to information relating to a particular industry. See page4 for more details

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3 Chapter 3 - Implementing PunchOut

3.1 Implementing PunchOut

There are a number of methods buyers and suppliers can choose to provide content. The method usedis influenced by the goods/services being purchased, and should be decided by mutual agreementbetween the buyer and supplier. If PunchOut is the agreed solution it will be implemented in conjunctionwith the Service Provider to ensure the optimal solution.

There are three different types of PunchOut. The goods/services being purchased and the procurementapplications involved will determine which combination of PunchOut types can be used, shouldPunchOut be the selected Content Delivery Method.

Procurement PunchOut

Procurement PunchOut is the most common type of PunchOut in B2B eCommerce. ProcurementPunchOut gives suppliers an alternative to providing static catalogues which are hosted by theirbuying organization or their solution provider, such as the ProcServe Trading Network. ProcurementPunchOut sites are live, interactive catalogues running on the supplier's own website and are oftensimply referred to as PunchOut sites.

Procurement solutions, such as the ProcServe Trading Network, display an icon to activate thePunchOut link to the supplier's PunchOut site. When buyers click this icon, their web browser willopen a webpage showing the supplier’s PunchOut site. Buyers can browse goods/services, specifyconfigurations and options, and select delivery methods. Items are added to the buyer's shoppingbasket and when the buyer is done shopping, they click a button that returns the order informationto the ProcServe Trading Network. The fully configured products and their prices are displayed asrequisitions waiting to be approved. The approved items are then sent to the supplier as a PurchaseOrder.

PunchOut Chaining

PunchOut chaining is Procurement PunchOut that involves more than one PunchOut link. cXMLPath Routing enables this functionality. cXML Path Routing allows the order and other subsequentmessages to return to the marketplaces and suppliers involved. All parties involved are notified aboutthe final order.

A common example of PunchOut chaining is a buyer PunchingOut from their procurementapplication to a marketplace solution, and from the marketplace solution PunchingOut to a supplier'swebsite.

Provider PunchOut

Provider PunchOut enables applications or networks to punch out to an application that suppliesservices to the originating application, such as credit card validation, user authentication, or self-registration.

As well as connecting to a supplier's own PunchOut site, PunchOut allows a buyer to connect to'vertical portals'. Vertical portals, sometimes called vortals, are gateways or portals to informationrelated to a particular industry such as health care, insurance, automobiles, or food manufacturing.

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3.2 PunchOut Requirements for Suppliers

The term supplier in the context of PunchOut can cover more than the traditional definition of the word.PunchOut is a flexible solution capable of transmitting data about virtually any kind of good or servicefrom any kind of supplier, distributor, or manufacturer.

Goods and services that can be provided by PunchOut include:

· Travel services - direct from the travel carrier or travel agency· Computers direct from a manufacturer or reseller· Pharmaceuticals from a wholesaler· Office supplies from a distributor· Contract services from a temp agency

The supplier may already have a website capable of hosting content and creating shopping baskets - an'eCommerce' or 'transactive' website. If so, the supplier needs to consider both its business practicesand technical resources when deciding to implement PunchOut.

Business Issues

Suppliers should consider the following:

· Does the supplier sell goods/services on its website? If yes, does the supplier offer customer-specific content and pricing on this website?

· Does the supplier’s goods/services fall into one of the categories described in Selecting PunchOutas a Content Delivery Method? (e.g., books, computers, services, etc.)

· Does the supplier’s goods/services have "content challenges" such as those described inSelecting PunchOut as a Content Delivery Method? (e.g., configurable items, regular updates,etc.)

If the answer to any of the above questions is yes, PunchOut might be appropriate for the supplier’sorganization.

Buyer-side Issues which may affect your PunchOut implementation

Suppliers should also consider the following issues as they may affect your ability to implementPunchOut:

· Buyers need to have a consistent line item identifier so they can perform accurate spend analysison a like-for-like basis. For example, a buyer may purchase photocopy paper from more than onesupplier. The buyer will need to be able to group purchases of photocopy paper together so theycan review how their spend for budget, financial, or other internal reporting requirements. Toaccommodate this, the UNSPSC code is used on the ProcServe Trading Network to provide acommon identifier for all goods and services that are purchased. When you return your cXML PunchOutOrderMessage you will need to include the UNSPSC code for all line items in yourcustomer's shopping basket.

· ProcServe uses the DUNS number as the unique organisation identifier for both suppliers andbuyers. If you use another identifier for your customers, you may need to create a mapping tableso that you can display the correct prices for your customers.

· In the case of schools using the OPEN and xchangewales eTrading for Schools marketplaces,ProcServe also provides the individual school LEA number as an additional identifier. The LEA

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number is 7 digits long, comprised of the Local Authority (the first 3 digits) and individual schoolnumber (the last 4 digits). If you have regional or Local Authority specific pricing, you may needto create a mapping table to link the individual Local Authority to this pricing table.

Technical Issues

Suppliers must meet the following technical requirements:

· Reliable internet connection - the web server and Internet connection must be reliable· Competent website administrators - the PunchOut website and supporting applications may

require periodic maintenance as the supplier’s goods/services change, so the supplier needspersonnel to keep the PunchOut infrastructure up to date

· Support for basic transactions - PunchOut websites do not need to support all cXML functionality,but they must support the following:

Ø Profile TransactionØ PunchOutSetupRequestØ PunchOutSetupResponseØ PunchOutOrderMessage

Suppliers should also be aware that if they provide an index file (either by an Excel spreadsheet orBMECat file) that the index file may need to be refreshed to reflect any updates to the PunchOut site.

Implementing PunchOut

The length of time it takes to implement PunchOut depends greatly on the existing capabilities of thesupplier's infrastructure and knowledge of cXML / XML. It typically takes up to 4 weeks to make anexisting eCommerce website that is able to support shopping baskets PunchOut capable. Making anon-eCommerce website PunchOut capable can take up 8 weeks. In addition to this, approximately twoweeks should be allowed for Service Provider testing to ensure the required PunchOut messages arecorrectly transmitted between all parties.

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4 Chapter 4 - Providing PunchOut Content

There are two "levels" of providing content by PunchOut.

Level 1 is the traditional method whereby a buyer clicks on an icon or goes to a drop-down list toactivate the PunchOut link to a supplier's PunchOut site. However, items on the suppliers PunchOutsite are not searchable from within the eProcurement solution because they are external to the searchengine.

Level 2 PunchOut was created to eliminate the disadvantages of non-searchable items hosted on asupplier's PunchOut site. It allows the buyers and suppliers to have best of both worlds: a combinationof searchable items with the advantages of PunchOut content. Level 2 PunchOut allows buyers to use asingle search engine for approved content from many suppliers while at the same time having access tothe latest price and availability information, regardless of where the content is hosted.

This means suppliers don't have to decide between providing a hosted (internal) catalogue or PunchOutsite (external catalogue). Now they can provide a simple hosted catalogue (an Index file) that links totheir PunchOut site where further and more detailed information can be provided.

4.1 Level 1 PunchOut - Standard Procurement PunchOut

Level 1 PunchOut is standard Procurement PunchOut.

When the buyer is shopping in their procurement or marketplace solution, they click on an icon whichrepresents the supplier's catalogue and activates a link to the supplier's PunchOut site. In somesolutions, the buyer will click on a drop-down list of suppliers from a list of "external catalogues" toactivate the PunchOut link.

These PunchOut catalogues/links are referred to "external catalogues" because they are hosted outsideof the buyer's eProcurement solution. Because they are hosted outside of the buyer's eProcurementsolution their content cannot be searched from within the buyer's eProcurement solution. This meansthat content hosted on a supplier's website will not appear in the search engine for the eProcurementsolution. The supplier is reliant on the buyer knowing how to access their PunchOut site.

4.2 Level 2 PunchOut - Indexed Procurement PunchOut

If a buyer is to find items from a supplier's PunchOut site in eProcurement solution's search engine, thesupplier must provide an index file. This is called Level 2 PunchOut, or Indexed Procurement PunchOut. It creates a link from within the eProcurement solution's search engine to the supplier's PunchOut site.

The Index file can be provided as an Excel spreadsheet such as the ProcServe Catalogue Builder or as aBMECat file, if the supplier is able to generate a BME file from their back office system. The Index filecan be as simple as a single line with keywords describing the goods/services the supplier offers sothese keywords can be found in the search engine along with a link to the supplier's PunchOut sitehomepage, or it can be as detailed as the entire catalogue of goods/services offered by the supplier withlinks to the individual line items on the suppliers PunchOut site so that each individual item offered bythe supplier will be found in search engine.

Level 2 PunchOut allows suppliers to set up PunchOut at "store”, "aisle" or "shelf" level. This meansthat if a buyer searches for a supplier's goods/services in the eProcurement search engine, clicking onthat item will take the buyer to the homepage on the PunchOut site (store), the "department" for thatitem (aisle), or directly to that item (shelf).

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Store Aisle Shelf

· useful if selling onecategory of good/servicewith limited items

· example, contracted to sellonly photocopy paper ofvarious sizes

· useful if selling manycategories of goods/services

· example, contracted to sellan entire range of officesupplies

· useful if selling onecategory of good/servicewith many items

· example, contracted to sella range of paper suppliesonly

· useful if the supplier wantsto take the buyer to thehomepage to start shopping

· useful if the supplier wantsto show the full range ofitems available for thecommodity

· useful if the supplier wantsto take the buyer directly tothe specific item

Providing an Index File

To provide an Index file, the supplier needs to ensure the following fields are completed in the ProcServeCatalogue Builder:

PUNCHOUTLEVEL: This is the ArticleExtension field which indicates the PunchOut level performedwhen clicking on the item in marketplace and PunchingOut to the supplier’s store. Supported values are"store", “aisle”, “shelf”.

ITEMID: Specifies the Item ID used for the XML element <SupplierPartID> of the <SelectedItem> area inthe PunchoutSetupRequest XML sent to the supplier’s store. This field is only relevant when PunchOutis non-store level.

ITEMAUXID: Specifies the item auxiliary id used for the XML element <SupplierPartAxuiliaryID> of the<SelectedItem> area in the PunchoutSetupRequest XML sent to the supplier’s shop. This field is onlyrelevant when PunchOut is non-store level.

Please see Chapter 6 - Technical Guidance for PunchOut for details of where you can find technicalcXML documentation.

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5 Chapter 5 - Is PunchOut for Me?

Suppliers want to control the way their customers view their goods/services because presentation iscritical to their sales process. Similarly, buying organizations want to make content easily accessibleand searchable to ensure high contract compliance. The two parties, therefore, must mutually agree thebest content delivery method for the goods/services being purchased.

The following should help you to determine if PunchOut is a suitable content delivery method for yourorganization:

To think about... Yes No

· Does your company have a website?

· If yes, does it support shopping baskets? (i.e., can people buy things on it)

· Do you supply goods/services which:

ü are configurable?

ü are regularly updated? (new editions, revised pricing, etc.)

ü have many associated items? (mandatory or optional)

ü have dynamic pricing?

ü variable attributes (business cards, stationery, etc.)

· Is your Internet Service Provider reliable and your related systems stable?

· Is your IT team familiar with cXML/XML?

Reviewing 'Selecting PunchOut as a Content Delivery Method' on page 3 will also be of assistance.

eProcurement is not meant to replace the normal commercial discussions you have with yourcustomers, but rather seeks to automate the 'paper trail' associated with traditional procurementmethods. It is important that you have an active, open dialogue with your customers to ensure you havea Content Delivery Method which accommodates both your needs.

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6 Chapter 6 - Technical Guidance for PunchOut

The first step to becoming PunchOut enabled is to understand XML. For an explanation of XML alongwith technical guidance on XML/cXML messaging, protocols, and how to transmit XML, as well astechnical requirements please familiarize yourself with the documents on these webpages:

http://www.procserve.com/documents/cXMLDocumentation/

http://www.cxml.org/

ProcServe cannot provide detailed technical assistance on how to configure your specific website orspecific guidance on what upgrades / technical requirements you will need, but we can offer somegeneral guidance.

Please see our contact details below for how you can reach us.

6.1 Contact Details

If technical assistance is needed, we may be able to support your needs as a chargeable, Value AddedService. In the first instance please contact the ProcServe Service Desk at 0845 604 2328 or by emailat [email protected].

Alternatively, contact us at [email protected] to contact one of our Supplier Services colleagues.

http://www.procserve.com/documents/cXMLDocumentation/

http://www.cxml.org/

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