If you look at the top priorities of every business, you will find one thing in common for all of them – minimize costs and maximize efficiency. It is fair to say that over the last few years the business world has done a good job at that by using the perks of technology.
Punch-out catalogs have been a trending topic of discussion over the last period. They are a tool to achieve what businesses are looking for – spending less time and money on doing things manually an avoid human error by employing automated systems.
If punch-out has been a term that you have been hearing a lot lately, here’s what you need to know about it as a supplier!
The way we do purchasing, especially when it comes to B2B has dramatically changed. Procurement became eProcurement as companies are continuously looking to explore new options on the market and find the best prices.
Big organizations are starting to make punch-out a mandatory requirement for suppliers. By doing so, they are able to reduce the associated costs of purchasing, as it is estimated that making purchases through eProcurement and punch-out costs companies less. In that sense, punch-out makes suppliers more competitive on the market and they are able to establish business relationships with multinational company giants who might be on the lookout for new suppliers and the best deals.
At the moment, it might be still possible to get away without employing one such system, yet soon enough it will all change. Lucrative customers are no strangers to using automated systems, so if you don’t comply with the demands, you might be doing yourself bad favour. It might seem like you are saving money by not investing in punch-out, but you are actually losing money by not making yourself competitive enough to attract big buyers.
Being able to adapt to change is one of the main ingredients for success. By making your business punch-out enabled, you are giving yourself a competitive advantage over the others who show resistance to the digital trends.
Eliminate Human Errors
You are probably well aware that one small human error can cause big disruptions. With punch-out, the risk of human error is eliminated, the system requires no maintenance as it is automatic. Additionally, all catalogs are maintained from the supplier’s main system, so a change there will reflect on the punch-out catalogs as well.
Build Better Relationships
With companies monitoring closely where their money is going, maverick buying is getting close to becoming extinguished. Some big companies already have policies prohibiting such buying decisions.
When companies employ such strict policies, it means that you need to be on their approved list if you want to get the chance of becoming their supplier and selling bulk orders. The way to do it is by enabling your business for punch-out. Companies with set punch-out protocols can quickly identify your business as a possible supplier and you can start building good and lasting business relationships.
Use It Yourself
Even if you are a supplier, chances are you have suppliers yourself. By using punch-out, you can do the same thing your buyers are doing – automate the process and save yourself the trouble of looking for new suppliers and best deals manually.
Punch-out is completely transforming the way businesses communicate and collaborate with suppliers. It is time to put the long and laborious process behind. As a supplier, you can set your business up for success by embracing the opportunities. It is time to let go of the “but we’ve always done it this way” mindset.