In today’s fast-paced e-commerce environment, a term that’s becoming increasingly common is “punch-out, punch-in” technology. With over 25 years of experience, we spoke to Jens Rosberg, founder of Netset and Head of International Sales, about the punch-out solution every IT reseller should know about. Is it just a buzzword, or a long-term strategy for streamlining B2B sales?

What is "Punch-out" in E-Commerce?

“The term "Punch-out" refers to a seamless integration between a buyer’s internal procurement system and the supplier’s e-commerce platform”, says Jens Rosberg and continues; 

“There are two main scenarios for “punch-out” in this context. The first involves the buying company or organization, typically within the B2B or B2G segment, making purchases in the IT reseller’s webshop as usual until they reach the checkout process. Instead of completing the checkout, the shopping cart details are "punched-out" to the buyer’s internal procurement system for further internal processing, such as approval flows, assigning PO numbers, and other procurement procedures. Standard formats for such integrations include PEPPOL, OCI, or cXML".

Another  “punch-out” scenario is when the buying company or organization wants the IT reseller’s full or partial product catalog integrated into their internal procurement system. There are standard formats to achieve this, such as PEPPOL, OIOUBL, and SVEx, with PEPPOL being the most common option, effectively becoming a universal standard.

And What About “Punch In” (Order Import) in E-Commerce?

“The main scenario for "punch-in" follows the first punch-out scenario mentioned above. Once the order procurement process on the buyer's side is completed, with any necessary additional information, the shopping cart is "punched-in" from the buyer’s procurement system back to the IT reseller’s e-commerce system, where it becomes an official order for the IT reseller. The standard formats typically supported for "punch-in" include PEPPOL, cXML, or SVEx”, says Jens.

What’s in it for the Customers?

Larger companies or public sector customers typically work with a wide range of suppliers covering different product categories. This drives the need to reduce complexity and consolidate all purchases into a single system, rather than doing purchases in many suppliers' different systems. It also significantly reduces their administrative workload, allowing them to optimize and automate processes like order approval and invoicing.

"The use of “Punch-out and Punch-in” radically simplifies the procurement landscape for larger companies and organizations. It eliminates manual entry, reduces errors, and makes the entire buying process more efficient and reliable,” explains Jens.

What Makes Punch-Out Technology Essential for IT Resellers?

“For IT resellers targeting larger companies or organizations, specifically the B2B/B2G market segment, supporting punch-out technology is key to future and recurring business. In recent years, supporting this technology has become more or less mandatory for participating in large tenders, especially in the public sector, where it’s a requirement. Nordic countries were early adopters, but we’re now seeing this technology spreading internationally, including in the US” concludes Jens. 

In essence, once an IT reseller is integrated with a customer via “punch-out,” it enables recurring and long-term business. The solution simplifies the purchasing process for customers, making it as convenient and as efficient as possible for all parties involved. The hurdle to switching supplier becomes higher and more complex, strengthening the relationship between the IT reseller and the customer. This relationship reaches a higher level of partnership, potentially enabling smoother and more long-term cooperation.

Curious about how punch-out technology could benefit your business? Get in touch with Netset today to learn more!