Automating B2B From Req to Check with Kevin Kazenmayer of TradeCentric

The rest is history. As online buying grew, so did the systems and platforms. We had to adapt and adopt new technologies. You could say we were on the cutting edge.

Corporate Express was eventually acquired by Staples. I've spent most of my career in B2B distribution, helping companies with their digital eCommerce and eProcurement journeys. It's an exciting space!

The ever-changing nature and focus on customer goals are what keeps me interested. As a supplier, it’s about making things seamless, easier, and stickier for your customers.

Aaron: I feel like Zoro Tools and Grainger get all the credit for being early adopters of eCommerce, but it sounds like Corporate Express was there first.

Kevin: Funny you should mention Grainger. I worked there too. Corporate Express, Grainger, and Dell were early adopters who teamed up when eProcurement launched in the late 90s.

Aaron: I knew there'd be a Grainger connection! They're like the Kevin Bacon of B2B eCommerce. Everyone is two degrees away from them, at most.

You've said “eProcurement”, which is a word, not an acronym. Though, putting “e” in front makes it feel unofficial. For our listeners who might not know – although I suspect they do – let's go through the formalities. What is eProcurement, and who are the major players?

Kevin: That's a great question. It's something I've trained sales teams on throughout my career. We always position eProcurement as B2B purchases made online between a buyer and seller, using a platform.
eProcurement software, typically cloud-based, manages all purchasing activities from “requisition to check,” from requisition through payment.

Early on, there was a company called Ariba, later acquired by SAP. SAP Ariba is a big player, as is Coupa. Others include Jaggaer and Ivalua. There are also vertical-specific providers, like Yardi and OpsTech in property management, and Birchstreet in hospitality.

The list goes on. We've dealt with over 150 during our time as TradeCentric, formerly PunchOut2Go. New ones emerge daily, everyone wanting to be the go-to eProcurement integration platform.

Aaron: You mentioned Coupa, Ariba, Jaggaer, and others. You also talked about setting up a website for Corporate Express. What's the difference between eProcurement software and a regular website where you browse, see pictures, click "buy," and that's it? How do they compare?

Kevin: eProcurement brings the entire procure-to-pay process together. A key component is finding the right product at the right price, and knowing it's available.

That's where suppliers and their commerce sites come in. By automating your eCommerce application and enabling PunchOut, buyers can shop your platform from their eProcurement system like a registered user.

The difference is, at checkout, the cart is returned to their procurement system. This allows them to follow protocols, get approvals, apply cost centers, and create a trackable purchase order that's sent to the supplier.

Aaron: So, it's the same experience until the financial part, which is tightly integrated with the buyer's processes. No need for credit cards or manual purchase orders.

Kevin: Exactly. Organizations use procurement platforms to drive efficiencies, growth, and reduce risk. It's about creating a pre-approved supplier list with negotiated contracts, ensuring compliance and streamlined purchasing.

Aaron: Makes sense.

You mentioned "PunchOut." Back when you were PunchOut2Go, I always wondered: where does that name come from? I remember Mike Tyson's Punch-Out video game. What connects punching people in a video game to eProcurement?

Kevin: It's interesting! PunchOut wasn't the only term for this. Believe it or not, it was also called "Tap Out."

Aaron: Well, that's a tough trademark to claim these days.

Kevin: Exactly. But 25 years ago, not so much. You also had "Round Trip." PunchOut was coined by Ariba, and since they were first, the name stuck. Just like "Kleenex" for tissues and "Q-tips" for cotton swabs, it became the common term, even for connecting any buyer's eProcurement platform to a supplier's eCommerce site.

Aaron: Did Ariba ever think about making PunchOut truck decals and tank tops? That seems like a missed opportunity.
So, the original company didn't have to pay Ariba to use the term? It was public domain?

Kevin: I think with so many people using it, they weren't able to hold onto the trademark. It became the industry standard.
Funny story: Corporate Express was actually one of the first to do a "PunchOut" before it was called that. In 1999, a little-known ERP company, SAP, approached us to pilot a new technology for their SRM platform, MySAP.com. They wanted to order directly from a supplier's website. I even demoed it at the SAP Sapphire Conference! MySAP.com never took off, and two years later, Ariba arrived.

Aaron: Wow, you were at the forefront! I was barely out of high school in 1999.

Kevin: Dating myself, I know.

Aaron: Your company was PunchOut2Go, now TradeCentric. We've covered eProcurement, eCommerce, Ariba, Coupa, and the other systems. What does TradeCentric do in all of this? Where do you fit in?

Kevin: We sit right in the middle. We changed our name to TradeCentric because we evolved beyond just PunchOut. We are an integration platform connecting B2B suppliers and their systems for the entire purchase-to-pay flow. PunchOut, returning carts, sending purchase orders, invoices – we automate the document and data flow between eCommerce and eProcurement systems.

Aaron: So, "middleware" would be an accurate term?

Kevin: We prefer "integration platform," but yes, essentially middleware. A customer once said, "TradeCentric bridges the gap between my non-technical suppliers and buyers." We bring everyone together.

Aaron: Non-technical all around, that's B2B!
Who is a typical TradeCentric customer? What's an example of why they would use your services?

Kevin: We work with both suppliers and buyers. We started with PunchOut, so we have many supplier customers, enabling their commerce platforms. Now, we're seeing more buyers who want more seamless systems and integrated invoices.

A great example is a shared customer, EECO. They had an Oro-based website and a buyer who insisted they integrate for PunchOut ordering. EECO tried to handle it themselves, but after a lot of time and effort, they realized it was more than they bargained for.
They came to us, then PunchOut2Go, and asked for help connecting to their buyer. Not only did we enable PunchOut for their Oro platform, but we also set up electronic purchase order and invoice delivery.

This allowed EECO to scale faster and reach a larger audience. Instead of solving the problem for just one customer, they now leverage our network of integrations and platforms. They can target new ship-tos and offer customization they couldn't before. We've heard they've seen up to 5x growth every time they connect a customer, leading to faster revenue generation.

Aaron: That's incredible!

You mentioned "requisition to check." There's also "quote to cash." The goal is the same: get paid faster. Speeding up the process from quote/requisition to purchase order and payment, while growing the number of customers, equals more revenue.

Kevin: Absolutely. Plus, we see this with regional suppliers. Once connected to a customer's eProcurement platform, they become visible to that entire organization, even locations they never knew existed. Instant revenue!

Aaron: A lot of suppliers struggle to expand beyond their region due to their reliance on relationships and field sales. This sounds like a game-changer for them.

We understand TradeCentric's place in the ecosystem. How does the conversation even begin when a supplier needs to integrate with a buyer's systems? For example, connecting an OroCommerce site to a buyer's Ariba instance. Does the buyer typically initiate this?

Kevin: It usually starts with the buyer saying, "We need you to integrate with our platform. This manual process is inefficient."
Unfortunately, salespeople sometimes act as a buffer, afraid to lose control. They don't communicate these requirements internally until it becomes a crisis. Had they addressed it earlier, they would have realized the need extends beyond just one customer.

Aaron: It's the same with eCommerce. Sales teams see it as a threat rather than a tool for productivity and growth.

Kevin: Back in my distributor days, we did a lot of sales enablement, teaching them how to be "order makers" instead of just "order takers." Electronic ordering frees up time to address other customer needs and challenges.

However, there are times when suppliers can leverage these capabilities to win new customers and respond to RFPs. Having these integrations allows them to service a wider range of customers and become a national supplier.

Aaron: This reminds me of marketplaces. Can't suppliers just say, "We're on Amazon Business," and call it a day? Does that address these integration issues?

Kevin: It's an option, but it might not tell the whole story. Amazon does have the capability to connect to eProcurement platforms. If you're a supplier on Amazon, they can appear in your customers' Ariba, Coupa, or other systems, handling PunchOut, orders, and invoices.

But some customers may want a more direct relationship. Suppliers might need both approaches: selling on Amazon to some and integrating directly with others who want that one-to-one connection.

Aaron: It's a balancing act. Many suppliers say their differentiator is customer service and relationships. But directing customers to Amazon essentially makes them a commodity provider, potentially jeopardizing those relationships.

Kevin: True, but some of our marketplace customers act as the "seller of record," handling orders and invoices while managing suppliers behind the scenes. Interestingly, those suppliers also work directly with other customers.

They use marketplaces to tap into new verticals or industries where they lack a strong presence, while maintaining direct relationships with existing customers in their core markets.

Aaron: Smart strategy. Territory expansion followed by consolidation through direct relationships.

It seems like you have a consulting service built right in!

Kevin: We do offer guidance to new suppliers on navigating eProcurement. We have something called the "eProcurement Cycle" to help them with organizational approach, sales enablement, customer targeting, and post-integration growth.

We even provide a free "trading partner analysis." We take their target customer list and identify potential eProcurement opportunities within our network. Many suppliers are surprised to discover a significant match, realizing there's more demand than they thought.

Aaron: An "aha" moment for them! If a company uses an eProcurement system to purchase goods and services – because I assume services are included – isn't that essentially an internal marketplace? Like a Grainger, but with built-in purchase order workflows?

Kevin: In short, yes. I've spent the last six months researching marketplaces. The term itself has evolved. Originally a physical location, then eProcurement systems adopted the label. Now you have glorified search engines calling themselves marketplaces, even without a transaction engine.

A true marketplace has sellers and a platform connecting them to buyers. eProcurement systems can be considered marketplaces, or "internal marketplaces" as some call them. They're more targeted than public marketplaces, often mimicking the look and feel of an Amazon, with catalogs replacing PunchOut in some cases.

Aaron: Interesting. We have customers using Oro to run full marketplaces within specific verticals, and that's exactly what they're doing.
You mentioned TradeCentric's role extends beyond just connecting systems. Beyond just PunchOut, how else does TradeCentric think about channels?

Kevin: We call it the "trifecta": PunchOut, purchase orders, and invoices. Automating all transactions is key. Even without PunchOut, orders and invoices can still be automated. We're exploring how to facilitate this for companies using inventory management systems instead of full-blown eProcurement.

We also help buyers enable their suppliers for electronic invoicing, even if those suppliers only use EDI. We bridge that gap, converting EDI invoices into the required format for the buyer's platform.

Aaron: Very valuable since many buyers push for eProcurement, while many suppliers push for EDI. It's a two-way street.

Kevin: Absolutely. Another area we're looking at is the rise of two-sided marketplaces. These marketplaces need to connect to buyers via PunchOut. We also see the need to assist sellers on these marketplaces who may not have the infrastructure to handle orders and invoices directly. We're investigating how to enable those transactions within the marketplace ecosystem.

Aaron: I love how TradeCentric has grown from a niche service to addressing a much broader need in B2B eCommerce.

This complexity stems from organizations having different systems and processes for handling money, products, and customer requests. TradeCentric makes it manageable, speeding up operations and freeing up resources.

Kevin: I agree. Often, when we work with different departments within an organization, it's the first time they're all in the same room, realizing they might not fully understand each other's processes.

Aaron: It reminds me of those early eCommerce days when I'd get everyone – fulfillment, customer service, sales, marketing, product, IT, and C-suite – in a room to talk about the website. It would be the first time they were all on the same page, literally.

You're also involved in research and studies. We recently conducted a study on workflow automation in B2B. We found that while many upstream processes were automated, checkout, order placement, shipping, and fulfillment were the least automated and most problematic.The core revenue-generating functions were the least efficient!

Does eProcurement address this? You mentioned automation several times.

Kevin: It does. Our recent study with 120 B2B suppliers revealed that 61% of them had customers requesting eProcurement integration, but only 35% were actively doing anything about it. Buyers want visibility and reliability in their supply chains, especially after the pandemic disruptions. eProcurement provides that.

Aaron: Which supports your point about demand being there, but execution lagging.

Kevin: There's a real opportunity for suppliers to meet customer needs, drive revenue, and win business by investing in these capabilities.

Aaron: Let's move on to our "crystal ball" segment, where we talk trends. Any predictions for B2B eCommerce in the next few years?

Kevin: eProcurement is on the rise. Last year, it accounted for $1.3 trillion in sales and saw 16% growth, compared to 3-4% for overall B2B sales. We'll continue to see greater adoption.

What's interesting is the shift from indirect to direct spend. eProcurement platforms are now integrating with ERPs and material management systems, centralizing more of the purchasing process.

Aaron: That's intriguing because ERPs are not known for being user-friendly or innovative.

I often see companies wanting a "nice front end" for their ERP – a customer-facing layer for interaction and quote requests. But what you described – using the ERP to power various channels – makes sense. Have you worked on ERP-eProcurement integrations? How do they compare to website integrations?

Kevin: They can be challenging. We enable NetSuite ERP for eProcurement, using a connector that sits on top of their native functionality, enabling PunchOut, purchase order, and invoice automation. Many suppliers struggle to integrate with NetSuite, so we simplify it.

We're also seeing Coupa positioning itself as that "customer-facing layer," handling procurement and interfacing with suppliers on behalf of the ERP. This introduces complexities like ASN's and order acknowledgments, which we can help suppliers navigate.

Aaron: It seems like a growing trend.

Time for our surprise last question! What book, movie, show, or other media have you enjoyed lately?

Kevin: I'm a sports fanatic. I recently watched Messi Meets America and the Beckham documentary. I know I'm late to the game, but they were both fantastic! It was refreshing to see that level of stardom coupled with genuine humility. My daughter, also a big soccer fan, got hooked as well. They were very well done. Even my CEO recommended the Beckham documentary.

Aaron: Are you a soccer fan in general?

Kevin: I am.

Aaron: Do you have a favorite team? Premier League, perhaps?

Kevin: It's a bit cliche, but I'm a Manchester United fan. I've followed them since the '90s, and being from New Jersey, I adopted them when Tim Howard played there.

Aaron: Fantastic! Though I couldn't tell you were from New Jersey at all.

Kevin: [Laughs]

Aaron: Living in Charlotte has smoothed out those rough edges, I suppose.

Kevin, thank you so much for joining us. This was a great conversation. Where can people find you if they want to learn more about TradeCentric?

Kevin: Thanks for having me, Aaron. I always enjoy our conversations. Connect with me on LinkedIn. I'm always active there. You can also visit tradecentric.com.

Aaron: We'll be sure to include links in the show notes.
Thanks again, and have a great day.

Kevin: Thanks a lot!