What is PunchOut? Benefits for B2B companies and the public sector

What is PunchOut and how does it work?

PunchOut is a technology that lets buyers initiate a purchase directly from their procurement system — such as Fortnox, Visma, SAP Ariba or Oracle — and "punch out" to the supplier's e-commerce store, select products there and then send their cart back to the procurement system for approval and order management.

For the supplier, it means their e-commerce store integrates seamlessly with the buyer's procurement system, creating a smoother and more controlled process.

Benefits for companies making purchases

With PunchOut, buyers get direct access to accurate catalogue data — everything from prices and stock status to agreed discounts. PunchOut can also contribute to tangible savings: according to some estimates, the average cost per transaction can drop from around 800 SEK to 560 SEK, thanks to increased automation and reduced manual work.

PunchOut also provides better control and transparency in the purchasing flow. Since orders are placed within the framework of approved products and suppliers, it becomes easier to follow internal policies. At the same time, the user experience improves — the interface resembles standard e-commerce, with features like search, favourites and order history, making it straightforward to use even for internal users without prior experience. The fact that the supplier themselves updates the catalogue data also further reduces the administrative burden on the buyer.

Benefits for public authorities and organisations

For the public sector, PunchOut creates a more standardised and transparent purchasing flow that aligns with requirements around traceability, procurement policies and budget controls. Since all orders are placed within approved frameworks, it becomes easier to track expenditure, deliveries and supplier performance in a structured way.

PunchOut also contributes to greater security and traceability — particularly when used together with networks like Peppol. Through Peppol, both authentication and data protection are handled according to well-established standards, making it secure to exchange information between different systems. Since Peppol is adapted to EU regulations and already used by many public sector actors, it's straightforward for authorities to connect to a wide network of suppliers. The solution also works smoothly in cloud-based environments.

Greater customisation on the supplier side

Suppliers can also benefit from tailoring catalogues, price lists and presentation on a per-customer basis. You can send customised catalogues, price lists and minimum order quantities to each of your PunchOut customers. Having a self-service e-commerce and purchasing portal makes it possible to submit quote requests, track deliveries, submit return requests, download invoices and more. This enables a more personalised and proactive approach to managing the purchasing relationship — even with large customers or public authorities.

Implementation and challenges

Implementing a PunchOut solution requires both technical understanding and careful planning. Common PunchOut protocols are OCI (SAP) and cXML. Peppol PunchOut is also used in Sweden to simplify integrations.

The choice of e-commerce platform also plays a significant role. Solutions such as Magento, Shopify or more specialised B2B platforms can be used depending on the desired flexibility and B2B functionality.

In the public sector in particular, it's essential to invest time in planning and testing, as regulations, security requirements and internal buy-in are all critical factors.

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