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B2B e Procurement
©2015 IBM Corporation 15 February 20162
B2B eProcurement is an internet enabled process where a Customer
(or Buyer) uses an eProcurement solution to send an electronic
Purchase Order to a Supplier.
What is B2B eProcurement
Please go through this Video link provided : http://bit.ly/1PvzdIy
©2015 IBM Corporation 15 February 20163
• Technical Assumptions
• Electronic Order Routing
•Order Management
• What is Punch-out Catalog
• How does it function
• Advantages
• Defination of eInvoicing
• Advantages
Electronic Ordering
Punch out Catalog
eInvoicing
Today’s Topics for eProcurement
©2015 IBM Corporation 15 February 20164
 Technical Assumtion
– Ability to submit electronic orders using industry formats
 ePV’s
 Protocol
 Preferred Data Standard
 Electronic Order Routing
 Fully automated order flow
 No manual touch points
 Order fulfillment is efficient
 Order management
 Electronic Orders
 Email Orders
 Punch out Catalog
Electronic Ordering Process
©2015 IBM Corporation 15 February 20165
Punch out Catalog
A PunchOut Catalog, more accurately called a PunchOut Website, is a method for
a corporate purchasing agent to buy from a supplier's website from within the
buyer's own procurement application or hosted eprocurement system
©2015 IBM Corporation 15 February 20166
–cXML
 Commerce Extensible Markup
Language
 Allows buyers from procurement
systems such as Ariba, SciQuest,
Coupa and many others to
punchout to an eCommerce site.
–OCI
 Open Catalog Interface
 Relies on field mapping between a
buyers SAP eProcurement systems
to suppliers eCommerce site
Two Procurement Industry Standard documents
for Punch out
Check out this LinkedIn post - http://bit.ly/1PCAPA5
©2015 IBM Corporation 15 February 20167
1. It saves a tremendous amount of man hours for both Suppliers and Buyers.
2. Content within the punchout catalogue is updated on a real-time basis.
3. PunchOut catalogs can be updated as often as necessary
4. PunchOut controls the catalog items and controls spend for the Procurement
department
5. Reduces communication and product configuration errors significantly
6. Detailed product information and specifications are provided
7. Minimized maintenance for both Client and IBM
8. Configured products can be placed into the shopping cart and saved for later
use or repeat purchase
9. Centralized Spending Control

Punch Out Advantages
©2015 IBM Corporation 15 February 20168
Electronic invoicing (e-Invoicing) is the exchange of the invoice document
between a supplier and a buyer in an integrated electronic format
eInvoicing
©2015 IBM Corporation 15 February 20169
Why eInvoicing?
–For Suppliers
 Reduced Costs
 Increased Accuracy
 Increased AP productivity
 Faster Processing and Payment
Cycles
 Focus on higher value
activities
 Enhanced Accounts
receivables
 Improved Cash Management
 Reduced Fraud, Duplicates and
late payment fees
 Improved dispute handling
 Improved supplier
relationships
–For Buyers
 Faster Payments
 Reduced costs
 Fever rejected invoices
 Increased productivity
 Enhanced Accounts
Reconciliation
 Improved Customer
Relationships
 Improved Cash
Management
–For Managers
 Improved Visibility
 Optimized Working
Capital
 Improved Compliance
 Improved Supplier/
Customer Relationship
 Enhanced IT system
optimization
 Meeting green
initiatives
©2015 IBM Corporation 15 February 201610
Value Curve for
Electronic Integration
Costs
Low Tech
(email or retrieval
from ePurchasing
system web site)
Catalogs
(accessible via
ePurchasing
system)
Initial
ePurchasing
Integration
Automation
Across Source to
Pay (S2P)
Automated
routing and
retention
Increased speed/
accuracy
Automated
information
exchange
“Touchless”
Basic Intermediate Advanced Fully Integrated
B2B eProcurement Advantages

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B2B eProcurement Advantages

  • 2. ©2015 IBM Corporation 15 February 20162 B2B eProcurement is an internet enabled process where a Customer (or Buyer) uses an eProcurement solution to send an electronic Purchase Order to a Supplier. What is B2B eProcurement Please go through this Video link provided : http://bit.ly/1PvzdIy
  • 3. ©2015 IBM Corporation 15 February 20163 • Technical Assumptions • Electronic Order Routing •Order Management • What is Punch-out Catalog • How does it function • Advantages • Defination of eInvoicing • Advantages Electronic Ordering Punch out Catalog eInvoicing Today’s Topics for eProcurement
  • 4. ©2015 IBM Corporation 15 February 20164  Technical Assumtion – Ability to submit electronic orders using industry formats  ePV’s  Protocol  Preferred Data Standard  Electronic Order Routing  Fully automated order flow  No manual touch points  Order fulfillment is efficient  Order management  Electronic Orders  Email Orders  Punch out Catalog Electronic Ordering Process
  • 5. ©2015 IBM Corporation 15 February 20165 Punch out Catalog A PunchOut Catalog, more accurately called a PunchOut Website, is a method for a corporate purchasing agent to buy from a supplier's website from within the buyer's own procurement application or hosted eprocurement system
  • 6. ©2015 IBM Corporation 15 February 20166 –cXML  Commerce Extensible Markup Language  Allows buyers from procurement systems such as Ariba, SciQuest, Coupa and many others to punchout to an eCommerce site. –OCI  Open Catalog Interface  Relies on field mapping between a buyers SAP eProcurement systems to suppliers eCommerce site Two Procurement Industry Standard documents for Punch out Check out this LinkedIn post - http://bit.ly/1PCAPA5
  • 7. ©2015 IBM Corporation 15 February 20167 1. It saves a tremendous amount of man hours for both Suppliers and Buyers. 2. Content within the punchout catalogue is updated on a real-time basis. 3. PunchOut catalogs can be updated as often as necessary 4. PunchOut controls the catalog items and controls spend for the Procurement department 5. Reduces communication and product configuration errors significantly 6. Detailed product information and specifications are provided 7. Minimized maintenance for both Client and IBM 8. Configured products can be placed into the shopping cart and saved for later use or repeat purchase 9. Centralized Spending Control  Punch Out Advantages
  • 8. ©2015 IBM Corporation 15 February 20168 Electronic invoicing (e-Invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format eInvoicing
  • 9. ©2015 IBM Corporation 15 February 20169 Why eInvoicing? –For Suppliers  Reduced Costs  Increased Accuracy  Increased AP productivity  Faster Processing and Payment Cycles  Focus on higher value activities  Enhanced Accounts receivables  Improved Cash Management  Reduced Fraud, Duplicates and late payment fees  Improved dispute handling  Improved supplier relationships –For Buyers  Faster Payments  Reduced costs  Fever rejected invoices  Increased productivity  Enhanced Accounts Reconciliation  Improved Customer Relationships  Improved Cash Management –For Managers  Improved Visibility  Optimized Working Capital  Improved Compliance  Improved Supplier/ Customer Relationship  Enhanced IT system optimization  Meeting green initiatives
  • 10. ©2015 IBM Corporation 15 February 201610 Value Curve for Electronic Integration Costs Low Tech (email or retrieval from ePurchasing system web site) Catalogs (accessible via ePurchasing system) Initial ePurchasing Integration Automation Across Source to Pay (S2P) Automated routing and retention Increased speed/ accuracy Automated information exchange “Touchless” Basic Intermediate Advanced Fully Integrated