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Do you want to know more about Punchout?  Do you have challenges with Punchout?  Learn more about Punchout from one of our Ariba Supplier Solutions Providers, PunchOutCatalogs.com, in this blog post by Matt Fisher.

Introduction

 

This post is a humble attempt to help Ariba suppliers/sellers by:

  1. Describing what a punchout catalog is
  2. Walking through the typical punchout flow
  3. Identifying some of the advantages and challenges of punchout
  4. Providing additional sources of information for your organization to become punchout capable

 

Preface

 

Even though I’ve been helping suppliers and buyers conduct business electronically with each other since Ariba’s early days in the 1990s, this is my very first post on Ariba Exchange. With every visit to the site, I’m increasingly impressed with the growing sense of community and look forward to contributing and learning from you all.

 

We’re all experts at something, and while supplier enablement is admittedly my one area of expertise, I sincerely acknowledge that there’s always more to learn from people. With that said, all of us who have worked with punchout catalogs know that no two definitions of  punchout are the same, and it’s different every time we try to explain it to someone.

 

I offer this first post to the community and welcome any and all feedback as we continue to help each other.

 

1)    What is a Punchout Catalog?

The majority of large corporations and many government agencies use some kind of eProcurement solution like Ariba Buyer to streamline and control the millions or billions of dollars of products and services that they buy every year. The employees in these organizations are being asked to use these eProcurement tools to create purchase orders rather than simply using their credit card to buy directly from suppliers’ B2C eCommerce sites or in a physical store. By driving spend through these tools, buyers gain control through approval rules, visibility through reporting, and bargaining power by driving business to contracted suppliers.

 

The preferred way for employees to create purchase orders is to use catalogs. Catalogs make it easier for employees to create accurate and detailed purchase orders that are most likely to be fulfilled without issue by suppliers. Employees would prefer to use catalogs and simply add what they need with a few clicks rather than being forced to manually type in all the required information in a “non-catalog” purchase requisition.

 

There are typically two types of catalogs:

A.     A relatively simple spreadsheet that lists supplier products or sometimes simple services, e.g. Ariba’s CIF file.

B.     More complex punchout websites that are similar in functionality to the common online ordering website. Punchout sites         have a special ability to integrate with customers that use eProcurement systems like Ariba Buyer.

 

For the less technical business owner, account manager, or sales rep, a punchout catalog is an online ordering website that your large customers can connect to in order to find the information they need about your products or services. Sounds simple enough?

 

For the more technical IT manager, website administrator, or consultant, a punchout catalog is a customized eCommerce shopping cart that integrates with eProcurement systems through a series of HTTPS posts transmitting predefined cXML documents that allow for secure authentication and ultimately the transfer of item information from the site’s cart to the buyer’s purchase requisition. Whew!

 

It’s an impressively technical solution that provides a deceivingly simple result: customers are able to get into your site securely, get a quote for what they need, then transfer all the information they need.

 

2)    Typical Punchout Flow

Here’s an attempt at walking you through the typical steps when a user (your customer) wants to buy something from you using your punchout website:

 

1.  Log In

  • Users log into the company’s eProcurement system (e.g. Ariba Buyer).
  • Unlike typical business to consumer (B2C) eCommerce, the customer will never log into your punchout site directly from the Internet, e.g. http://www.yourstore.com – it will always be accessed via the eProcurement system.
  • This is a huge advantage for suppliers as there is no need to administer hundreds or thousands of individual usernames and passwords – this is all handled on the buyer side.

2.  Browse or Search

  • The users browse or search through the potentially numerous catalogs to hopefully find the link to your punchout website.
  • Keep reading for a tip on how to increase the probability of getting found.

3.  “Punch Out” to Website

  • When users click your punchout link in Ariba Buyer, they seamlessly enter your punchout site. At first glance, it may appear that the customers have simply been forwarded to your website; however the users are actually still in their Ariba Buyer sessions – there will be an Ariba Buyer-branded frame at the top of the browser window.
  • This is where the term “punch out” stems from, as users are still in Ariba, but they’ve now connected out to your website for the sole purpose of grabbing the information they need to complete their purchase request.

4.  Transfer Cart Contents

  • Once customers have punched out to your website, they’ll search or browse for their desired product or service just like a typical online shopper would.
  • The checkout process is different, however. When users decide to checkout their carts, instead of the site prompting them for shipping and billing information, they are taken back to their purchase requisitions within Ariba Buyer, and the items that were in the punchout website carts now magically appear in the right spot within their purchase requisitions!
  • Note that customers have NOT actually purchased anything from you yet – remember, they need to send you a purchase order, so what they’ve really done is simply gathered a quote themselves with the help of your punchout site.  True customer self-service!

5.  Submit for Approval & Transmit Purchase Order

  • Once users have finished adding items to the purchase requisition, they are required to enter/confirm additional information such as shipping address, account(s) to be billed, and internal notes such as justification explanation, the requisitions may require approval before purchase orders are finally transmitted to the supplier.

One common misconception is that punchout suppliers must now switch to receiving purchase orders via cXML and start transmitting invoices via cXML as well. While this is a best practice, buyers typically don’t care HOW you receive your orders or transmit your invoices, as long as you fulfill the orders quickly and invoice accurately.

3a) Benefits for Suppliers

 

These are just a few of the main ones and I’m sure many of you can offer others:

 

  • Control the Shopping Experience (Or At Least Part of It)
    • Suppliers that simply provide local catalogs have absolutely no control over the shopping experience beyond the content of the catalog. On the other hand, a punchout allows complete control over the shopping experience and catalog content once customers enter your site.  Suppliers tend to find punchouts more empowering as they can actually see what their customer sees.

  • Update Catalog Content As Needed
    • When it comes time to update your product catalog, if you are using a CIF file, you’ll need to ask coordinate with your buyer to ask permission to make the changes then rely on them to upload the file into Ariba Buyer.  With punchout, you are allowed (and expected) to update your catalog yourself, without the customer needing to do anything.  It is a best practice to at least notify your customers of any notable changes.

  • Upsell and Cross-Sell
    • One way to take advantage of your punchout site is by upselling and cross-selling. If a customer is looking at a camera, suggest that they look at two others in an effort to push more preferred items.  If a customer has added a camera to their cart, suggest additional items they may have forgotten such as a case and tripod!

  • Become “Stickier”
    • When buyers invite you to integrate your punchout website, they’re investing time and effort in you. It’s in their best interest that the integration is thoroughly tested and your website is as user-friendly as possible. Once integrated, they typically are not in a rush to do it all over again with another supplier anytime soon.

  • Market Your Punchout Abilities to Other Customers
    • Now that you’ve taken care of the immediate need to provide a punchout solution to one of your customers, use your new capabilities to your advantage!  Issue a press release. Email all your other customers to see if they are using eProcurement. Update your Ariba Supplier Network profile. Consider joining the Ariba Ready program. Definitely contact Ariba Connection Solutions and express your desire to service additional Ariba customers: http://www.ariba.com/solutions/connection.cfm

  • Provide Enhanced Functionality
    • When you have a punchout site, you have the opportunity to continuously add value. Rather than just provide the bare minimum requirements that your customer has requested, go crazy with value-add functionality! Strive to provide the best punchout possible. Your buyers might even agree to announce notable new functionality to their users, improving your exposure. My next post will include a long list of impressive ways that suppliers are adding value for their customers.

 

3b) Challenges for Suppliers

 

Again, here are just a couple of challenges, however there are more:

 

  • Getting Found in eProcurement Searches
    • The truth is you’re essentially at the mercy of your customers when it comes to how easily your punchout link can be found. You can’t highlight your link, make it bold, or have it float to the top. You might be fortunate enough to be the only listing under your category, or you might be one search result in a listing of thousands. Once the punchout site is up, ask your buyer how best to advise customers on how to find your punchout link.
    • TIP: Suppliers should provide buyers with a list of recommended keywords to help increase the likelihood of your punchout link to be found within Ariba Buyer (e.g. if you’re a printing company add keywords like “business card, letterhead, letter head, envelope, notepad, note pad, print”).
    • NOTE: Instead of providing your buyer with a simple link to your website’s homepage, a more advanced option might be to provide individual links to every category (aisle level punchout) or even every product (item level punchout). This combination of a punchout website with a more detailed catalog file is called level 2 punchout. There are pros and cons to level 2 punchout that I’ll save for another post.

  • Deciding How Best to Go Punchout
    • If you already have an online ordering site, you have three options: try to do it all yourself (DIY), partner with an integrator to outsource at least the new cXML punchout piece, or simply license a turnkey punchout capable shopping cart.
    • This is often a difficult decision to make, especially if you’ve invested substantial time and money in your existing website. The most common approach (in my humble experience) has been to go with the option with the least risk and unknowns: a second site that is already punchout capable. I’ll save this option analysis for another post as well.
    • If you don’t have online ordering capabilities today, then the option is clear: go with a solution that can address all of your customers, both those that are asking for a punchout catalog ASAP and any other customer that may want to order online but not necessarily via punchout.

 

4) Where to Get Help

 

Ariba provides suppliers with useful documentation, live webinars, and third party solution providers:

 

1.  Ariba Supplier Network Help Page

2.  Ariba’s Live Demos

 

3.  Ariba Supplier Solution Providers

 

About the Author

Matt Fisher is the founder and COO of PunchOutCatalogs.com, the longest standing Ariba Supplier Solution Provider, providing suppliers with Ariba certified punchout capable solutions known for their extremely consumer friendly look and feel and a long list of feature functionality, implemented by experienced professionals.  Visit www.PunchOutCatalogs.com for more information.

contract.jpg

Yesterday, we posted a blog that had tips on working with Sourcing Managers.  Today, we'll discuss the last two tips.

 

Tip #7: Don’t take your customer for granted once you finalize the contract. Too many sellers view a signed contract as the end point of their efforts. Yet getting the business is only the first step; keeping it is something else again. Cement relationships by watching for new opportunities to help the customer cut costs, work more efficiently, and make their life easier. If you don’t, you may lose their trust and ultimately, their business. “If a competitor points out ways my current supplier could be saving me money or bringing value-add that they didn’t tell me about, I may bid out that business and award it to someone else, whereas if my current seller had brought it to me up front I’d stick with them,” Sherrill says. “For example, if you’re providing e-catalogs for other customers, or using EDI or pCards or things like that, you should proactively say to us, ‘Do you want to use EDI? Because we can do it; please set us up.’ That’s always better than us having to reach out to you.”

 

Tip #8: Do follow good financial practices. For example:

  • Don’t invoice without a purchase order. Though the best practice is not to render service till you’ve gotten a PO, internal users will often ask you to move forward while promising to get the PO in the system. While that may be okay to a certain point, be sure to get a PO before sending your bill. “Invoices that don’t reference a PO delay the payment process and cause other match exception problems,” Sherrill says. “Instead, they need to insist that the end user gets the PO to them so they can reference it in the invoice.”
  • Know the buyer’s back-end AP processes and automate when possible. Dealing with the myriad ways sellers want to submit invoices creates headaches for buying organizations, so make it your priority to learn and use their preferred method. If e-invoicing is an option, be sure to offer it, since it saves you and your customer effort and expense and greatly increases accuracy.
  • Manage your cash flow effectively. Do whatever it takes to ensure that your bills are paid in a timely fashion and your other cash flow needs are met. “We’ve had suppliers come into our office and wait for AP to print off their check so they could pay their subcontractors and prevent legal action being taken against them,” Sherrill says. “That doesn’t look good.” Resources like Ariba Receivables Financing and dynamic discounting can help you get the money you need when you need it.

 

This post is part of the current issue of Ariba Supply Lines. Ariba Supply Lines is a quarterly newsletter that provides valuable tips, best practices, and the latest thinking to take your online business relationships with your buying customers to the next level.

To subscribe to this permission only newsletter, please click here.

aribapay3.jpg

Now that we know the benefits of AribaPay™, let's see how it can work for you.

 

AribaPay links Ariba’s collaborative commerce resources—including access to relevant history and documents like purchase orders, contracts, and invoices that you can download or review directly from the Ariba® Network, plus reporting capabilities that provide a clear audit trail—with the ability to securely transfer funds through the global payments infrastructure of the Discover Network. But make no mistake: AribaPay is not another p-card, credit card, or other commercial card offering with hefty percentage-based interchange fees. Instead, it’s a unique new B2B payment method, with no interchange fees involved.

 

What should I do to get started?

 

  1. Become “AribaPay Ready.” To ensure you’re ready to use AribaPay when your buyers are, check out the AribaPay webpage, then click “I’m a Supplier” to sign up. You’ll be contacted about next steps in the process as soon as information becomes available.
  2. Invite your customers to use AribaPay. AribaPay offers plenty of value to buying organizations, too—including fewer paper checks, fewer payment inquiries, lower processing costs, and less risk—so by encouraging them to use it, you can both reap the benefits.

 

To check out more useful e-commerce articles and tips, visit our Supply Lines group.

E-commerce helped our heroine to simplify and automate billing, what will it do for you? Sign up to view her story and learn the secrets to successfully combatting the endless back-and-forth of billing. Then, please tell us about your experience: is it similar or different? Do you have other suggestions to offer? Chime in on the conversation and share it with your peers (especially those sales and marketing types), and maybe together we can find some great new ideas.

                                                                                
VIEW ARLENE'S STORY
        
  Graphic Story on Battling High DSO. See The Story          
                                                                                  
CLICK HERE TO SEE HOW THINGS END UP FOR ARLENE

Help your vendors integrate with you for faster, more accurate transactions using Dell Boomi.

So what is Dell Boomi? Let’s start with a quick rundown on what integration is. Integration involves your seller's instance on the Ariba Network being connected to their accounting or ERP system. What this means for your vendors is that their staff won't have to key order or invoice data into more than one place – the system moves transactions along within your systems as easily as they are moved by the Ariba Network between buyers and sellers.  Dell Boomi works through the web in a secure fashion. Basically, documents are transmitted electronically.  As Dell Boomi is a web application, installation of neither software nor hardware is required. Even sellers with limited technical knowledge can benefit from this integration technology. Dell Boomi is easy-to-use and is flexible in supporting their needs, and supports multiple SaaS and on-premise ERP and accounting applications.  Ariba offers connections to the most common applications in a turnkey fashion as shown here, and additional ones are also available on a custom basis.

 

Turnkey SaaS and On-Premise Applications:

Intuit QuickBooks

Sage 50 (formerly Sage Peachtree)

Microsoft Dynamics GP

Dell Boomi gets its name from the fact that in 2010, Dell Computer bought Boomi, the company that was founded in 2000 and developed this technology.

 

Dell Boomi provides many advantages to Ariba Network Sellers:

With less reliance on manual processes like paper invoicing, PO Flip, etc., Dell Boomi allows sellers and buyers to electronically transmit documents to one another for quicker transmission and processing of documents.

By integrating your ERP system with the Ariba Network, there is less risk associated with human error when transmitting documents manually, thus increased accuracy, saving both time and money.

The benefit of increased accuracy brings with it fewer disputes on POs, invoices and order confirmations.

With Boomi, sellers work directly within their ERP; thus, no additional data entry is required to transmit documents, process orders and bills, and receive payment.

Dell Boomi provides monitoring capabilities such that sellers can view transmitted documents to ensure successful routing and receipt.

Sellers also benefit from the opportunity of faster payment – not because of any changes in terms, but simply because all transaction are done electronically, in real time, with less risk for mistake and error. By eliminating the potential for errors and disputes, sellers can process received payment faster, resulting in sooner cash on hand.

Dell Boomi provides one connection of the seller’s accounting or ERP system to the Ariba Network, not to each buyer. Thus, you can quickly and easily conduct transactions with multiple customers, and use either the legacy ERP or accounting system or the Ariba Network to get a full picture of all of your customer relationships.

 

Dell Boomi is easy and burden-free. It requires no additional resources and allows for quick, efficient document transmission. So how does Boomi work?

The seller connects their ERP or accounting system to Dell Boomi.

The seller generates documents within their ERP portal. These documents transmit between the ERP or accounting system and Dell Boomi where they are automatically formatted for transmission to the Ariba Network. This document transmission is done under secure web services. No EDI or cXML is required.

Once the respective document is successfully transmitted to the Ariba Network, it is electronically transmitted to and from the buyer for processing.

Boomi.png

 

As part of the new Supplier Membership Program, Ariba fully supports, and even includes, Dell Boomi technology in its two top-tier subscription levels, Enterprise and Enterprise Plus.

The Dell Boomi connectors are prebuilt, making integrations scalable, flexible and easy to use. No development work is required, and no customer coding is necessary.

Ariba provides set-up support, working with sellers to gather requirements and understand the seller’s application data structure and design, and will then configure the connector and develop data field maps.

Implementation is quick. Because there is no development work and we provide set-up support as a value-add, Dell Boomi can be deployed quickly and easily.

We also provide testing support. Before sellers conduct live transactions with buyers, Ariba will ensure that the Dell Boomi integration connectors are functioning properly to make certain that no bugs nor errors exist that could potentially impact document transfer in later stages.

 

For more information on the Ariba Supplier Membership program and Dell Boomi -- log on to http://www.ariba.com/help/ariba-answers 

 



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