How does a major B2B supplier like EECO keep customers happy and orders flowing? The answer lies in eProcurement integration.
Recently, EECO‘s Adam Sheets joined Joe Albrecht of Xngage, and Kevin Kazenmayer of TradeCentric for a panel discussion titled “B2B Commerce Made Easy with eProcurement Integration,” hosted by OroCommerce.
This insightful discussion shed light on the booming eProcurement market, its untapped potential, and how companies like EECO are using it alongside other digital channels to transform their B2B sales process. Let’s unpack the most interesting insights gleaned from their conversation.
eProcurement: A Booming Market with Untapped Potential
Kevin Kazenmayer kicked things off by highlighting the explosive growth of eProcurement, with research showing double-digit sales increases over the past three years. This trend clearly indicates a shift in how B2B buyers and suppliers prefer to do business.
Yet, despite the evident demand, many suppliers remain hesitant to invest in eProcurement integration. This presents a significant opportunity for forward-thinking companies willing to adapt and meet their customers’ evolving expectations.
To navigate the sometimes confusing terminology surrounding eProcurement, the panel clarified key terms like “punchout” and “connected commerce.” Punchout allows buyers to seamlessly access a supplier’s storefront within their own procurement system, simplifying the ordering process. Connected commerce takes this a step further by automating the entire transaction flow, from shopping to invoice receipt.
A study commissioned by TradeCentric revealed compelling benefits for suppliers using connected commerce. These solutions dramatically streamline purchase order and invoice management, saving businesses 80% and 70% of their time, respectively. Additionally, companies experience an average revenue boost of 20% from both new and existing customers, while also enjoying a 3 to 5-day reduction in Day Sales Outstanding cycles.
Adam Sheets from EECO echoed these findings, sharing how integrating with their customers’ eProcurement systems and adopting ecommerce led to a 5x increase in their overall revenue.
Joe Albrecht from Xngage weighed in on the different approaches companies take toward digital commerce. While some react to customer demands, others proactively recognize its strategic value and prioritize it from the outset.
“Many of our clients combine strategies,” Joe explained. “They don’t just rely on a website or punchout alone. It’s always a multi-factor approach that ultimately leads to success.”
From Webshop to Punchout: EECO’s Digital Commerce Journey
EECO’s own journey exemplifies this multi-faceted approach. Initially, they implemented a customer-facing webshop with the help of Xngage. However, they soon realized that larger clients with established procurement systems needed a more efficient way to order. This is where punchout, facilitated by TradeCentric, came into play.
Think of punchout as a digital bridge between EECO’s system and a buyer’s procurement system (like Coupa).
For buyers, it simplifies the ordering process by leveraging their existing procurement system, reducing errors and saving time. Suppliers benefit from reduced maintenance on product catalogs, minimized errors through automatic data transfer, and potentially increased sales due to easier product discovery for buyers.
The Winning Combo: Webshop for Flexibility, Punchout for Efficiency
EECO understands that a one-size-fits-all approach doesn’t work in digital commerce. That’s why they leverage the strengths of both punchout and a webshop powered by OroCommerce to cater to different customer segments.
- Punchout for efficiency: For larger, established customers with procurement systems, EECO offers seamless punchout integration. This allows buyers to generate purchase orders directly within their familiar environment.
- Webshop for flexibility: Smaller customers who may not have procurement systems can still easily browse EECO’s products and place orders through the user-friendly webshop. Additionally, the webshop serves as a convenient entry point for new businesses to discover EECO’s offerings. As their needs grow, customers can transition to punchout for a more streamlined ordering process.
By strategically using both punchout and a webshop, EECO ensures a smooth and efficient buying experience for all its customers, regardless of size or existing systems.
The Audience Asks: Punchout Implementation & Concerns Addressed
The panel discussion also tackled some common questions from attendees, including:
- How do you determine which customers to integrate with via punchout? Is it anyone willing to connect, or is there a specific criteria? EECO prioritizes existing customers on established procurement portals. They then target those who would benefit most from a deeper connection.
- Aside from cost, what are the main reasons companies might be hesitant to invest in a procurement platform? How can we address these concerns and highlight the benefits? While there are costs involved, a well-implemented procurement platform can unlock increased sales and stronger customer relationships. Focus on the return on investment. EECO and the discussion panel also stressed that businesses that aren’t visible on these platforms risk missing out. Even mid-sized companies can benefit, considering many industries rely heavily on procurement platforms.
- How long does punchout implementation take? The timeframe can vary depending on the trading partner’s engagement. Best-case scenarios can see setups in 30-45 days, but it all boils down to how quickly your partner is ready to go.
