Hosted vs Punch-Out Catalog: Which Is Right for Your Business?

Business leaders using procurement systems commonly use punch-out or hosted catalogs to carry out transactions with suppliers. The main purpose is to gain easy access to the supplier’s website. 

When comparing the two – punch-out catalog, generally, wins hands down in terms of features and the automation it offers. It has therefore been the first choice in the B2B space. 

However, it’s understandable that it can be difficult for some procurement leaders to pick between the two as all business needs are different.

This blog will look at both these systems in detail. Knowing whether to opt for a punch-out catalog or a hosted catalog can help meet the desired bottom line and strengthen the relationship between suppliers. 

What is a Hosted Catalog Solution? 

Hosted catalogs consolidate product content from multiple integrated suppliers — into a single platform. This offers centralized control and ensures contract compliance. Through this system, businesses can define key product attributes — such as preferred items, frequently purchased products, contract terms or rebate status. This helps guide buyers toward the most cost-effective options. 

In the typical hosted catalog workflow, users can browse and search across a wide range of products from multiple integrated suppliers and view product details, such as pricing, availability and contract compliance. 

They can also identify preferred or frequently purchased products using custom indicators set by the organization (e.g., preferred, contract items, or rebate eligibility). 

Further, businesses can add selected items to their shopping cart for purchase. They can also follow approval workflows if required — ensuring compliance with purchasing policies. 

Finally, they can also track order history and manage repeat purchases to streamline procurement processes. 

What is a Punch-out Catalog? 

A punch-out catalog is an enhanced version of a hosted catalog. It offers features that many B2B companies need and enhances the relationship between buyer and supplier by providing automation and a streamlined purchase order process. The main purpose of punch-out integration is to eliminate as many purchasing challenges as possible. 

The term “punch-out” refers to the enhanced browsing process allowing buyers to shop within their protected eProcurement system. 

Using a single purchase order as an example, the action starts with a punch-out request from the buyer, which starts the punch-out session. 

During the season, the buyer browses for items that they need and can add them to a cart, similar to individual online shopping. The buyer can then punch out, which transfers the selected products to the buyer’s procurement system. 

In the typical punch-out catalog workflow, users can access supplier websites directly from their procurement system, maintaining an integrated experience. They can browse and search for products on the supplier's external catalog while still following their organization’s purchasing rules. Getting real-time visibility also becomes easy. Users can see any changes in the product price, stock availability and other contract-specific terms from the supplier in real-time. 

Users can not only put the products in an online cart but also punch out from the supplier site to send them back to their procurement system for final approval. 

Here, they can go through all the compliance procedures as well. Post-purchase users can track orders and manage repeat purchases easily. 

Also Read: Streamlining Procurement Processes by Punch-Out Catalog 

Hosted Catalog Versus Punch-out: Pros and Cons 

Hosted Catalog: Pros 

• Ideal for businesses with a limited lineup of products (less than a hundred) 
• Good for companies where products do not change often, and new products are rarely added. 

Hosted Catalog: Cons 

• Businesses that want to participate in B2B marketing should refrain from using a hosted catalog. 
• You can’t enable a hosted catalog to promote customization features. 
• Hosted catalogs greatly limit the shopping experience for buyers, which can lead to difficulties with customer retention. 
• Users can’t always see how much of a product is readily available for purchase. 
• The lack of automation and the need for manual updates creates confusion for the customer. Sometimes, a buyer may not even realize one of their favorite products will no longer be available for the foreseeable future. 
• Hosted catalogs are unable to fulfill orders as quickly as a punch-out catalog. 

Punch-out Catalog: Pros 

• Suppliers can offer customers real-time updates and accurate information on product availability, price, description and more. 
• Automation and precise product information save time for the customer and allow companies to use staff resources in other areas. 
• Bonus information like shipping dates and specific stock levels are available. 
• Update themselves using data from the supplier’s main system. 
• Punch-out catalogs generate invoices. 
• Punch-out catalogs can often feature special editions and discounted products. 
• Customers can enjoy consistent order accuracy and there is no need to make time-consuming phone calls to fix mistakes. 
• A punch-out website gives suppliers a better chance of retaining customers. 
• For both the buyer and supplier, productivity is a critical benefit of the punch-out process. With streamlined ordering and orders arriving faster, team members can spend their time on other tasks. 

Punch-out Catalog: Cons 

• A punch-out catalog requires more consistent updating since companies with various, evolving products use them. 
• More automation means a lack of manual control, which can make some companies uncomfortable. 
• The seller has to keep up with maintenance. However, this eliminates redundancy and errors. 

Here is a table to simplify the differences between the two: 

Hosted vs Punch-Out Catalog 

The choice completely depends on your business needs. In the case of an organization that has a relatively small product lineup, that does not undergo frequent changes, the best catalog would be that of a hosted one. Besides these, there is punch-out catalog for those businesses with a big and dynamic product range, which provides real-time data and automation. Understanding this level of distinction will allow you to choose the right solution for procurement efficiency and improvement in supplier relationships. 

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