Many companies are requesting that industrial suppliers support Ariba Punch Out to their web site. Some customers who have CommerceOne procurement software use the term Round Trip rather than Punch Out. Both work in essentially the same way.

Punch Out allows buyers to securely access a supplier's online web store while they are using their existing procurement application. The buyer uses the supplier's web site to search and select items for purchase and then fill a shopping cart. The shopping cart of items is then sent via the Internet in real time to the buyer's procurement application. The procurement application converts the shopping cart into a requisition, which is worked, approved and converted to a Purchase Order. Then the Purchase Order is sent to the supplier.

Punch Out streamlines the purchasing process. Punch Out allows a buyer to efficiently access the supplier's most current catalog and pricing on the supplier's web store. The supplier can tailor their web store to most efficiently present their products to buyers for the particular products that the buyer wants. The buyer can easily find these items on the supplier's web store, along with the most up-to-date contract specific pricing. And the buyer has 24 hour access to information needed to make purchase decisions.

The buyer does not have to maintain a massive catalog containing items from all of their suppliers. This means the buyer does not have request catalog information from suppliers, translate many different formats, and store each supplier's catalog in the buyer's procurement application. And just as importantly, the buyer does not have to maintain current catalog information and pricing for suppliers over time.

Punch Out streamlines the selling process for the supplier. Buyers can efficiently find and order many of the items they need without human intervention. The supplier can present their products on their web site in a way that is efficient for their customers and that highlights their products' value.

Customers who use Punch Out do not need suppliers to send them catalog and catalog updates. This eliminates an extremely tedious task for suppliers, which is magnified by the problem of keeping the catalog information current in a variety of customers' procurement applications.

Does Punch Out eliminate the need for customer service? No, but many routine questions and order configuration are supported online. This frees up the supplier's personnel to help customers with more involved questions about the company's products and services. And the online web store can be available 24 hours a day, seven day a week.

After the order has been worked and approved within the buyers procurement application, the customer's back office application or ERP can automatically generate Purchase Orders and route them to the supplier via the Internet.