PunchOut catalogs and Hosted catalogs are the primary procurement system structures. There are a number of differences between these structures and how they fit into e-procurement in healthcare.
What is a PunchOut Catalog Solution?
A PunchOut catalog is a combination of an ecommerce website and an organization’s e-procurement system. PunchOut catalogs give suppliers most of the control over your organization’s e-procurement platform.
In the typical PunchOut catalog workflow, users can:
- Sign on to their healthcare procurement system and select their desired supplier.
- “Punch Out” and be redirected to a version of that supplier’s ecommerce platform.
- Add products to their cart like other online shopping experiences.
- “Punch back in” to their procurement platform to complete the transaction and submit for any necessary approvals before fulfillment.
What is a Hosted Catalog Solution?
Hosted catalogs house all product content from multiple integrated suppliers within a single site. This centralization provides unparalleled control and contract compliance. Within the hosted catalog experience, healthcare organizations define product indicators (e.g.preferred, frequently purchased, contract, rebate status, etc.) to guide purchasers toward desired products for the greatest savings.
In the typical Hosted catalog workflow, users can:
- Log into their healthcare procurement system and search for a desired product.
- Review all products that best fit their searched criteria, filter by supplier as desired, review product information, and add needed items to the shopping cart.
- Purchase products from numerous suppliers on one order.
- Place the order and send off for any necessary approvals before fulfillment, without ever leaving the procurement system
Which is the Best Format for my Healthcare Procurement Strategy?
PunchOut Catalogs:
PunchOut catalog capabilities and features vary by supplier. While PunchOut catalogs can be easy to set up, the system usually offers limited content control.
PunchOut solutions often require users to navigate multiple external vendor websites to complete their purchases. This can lead to fragmented processes and inconsistencies in data.
Furthermore, the user experience can suffer with punchout solutions. Navigating various supplier websites can be cumbersome and time-consuming, detracting from the efficiency and convenience of the procurement process. Users may find it frustrating to switch between different platforms, leading to decreased productivity.
Suppliers may update or add products to a punchout system without notifying organizations of changes, including pricing. Because suppliers control site content, they may market unwanted promotions and coupon codes to end users. This can cause expensive disruptions to controlled procurement activities and strategies.
Without contracted pricing in place, users may over-purchase non-essential items to take advantage of seemingly attractive pricing discounts. This is wasteful spending, and it can hurt an organization’s business process.
PunchOut Catalogs don’t require a lot of management, which may lead to under utilized contracts and limited purchasing power in future negotiations. This is all to say, PunchOut catalogs can save time for your organization, but spend management over products and services can become much more difficult.
Hosted procurement solutions eliminate these issues by integrating all vendor catalogs and purchasing activities into one cohesive platform. This integration not only saves time but also improves data accuracy and consistency, as all transactions are recorded within the same system.
Hosted Catalogs:
Hosted catalogs give organizations full control over the pricing that gets loaded. A quality procurement system should require organization approval when a supplier wants to update the product information and price. In addition, organizations can expect functionality to validate a purchase order with the associated invoice and support when discrepancies arise.
In a hosted catalog structure, product data can be depended on to remain relatively consistent. Product descriptions and special offers won’t be changed without the organization knowing about it. This eprocurement system also allows for greater vendor management, meaning you can set more controls over sourcing and pricing. A dependable pricing structure and product catalog makes risk management easier for your organization.
A hosted procurement system supplies benefits beyond consistency in product selection and price. Your procurement team will be able to reduce wasteful spending by requiring a more comprehensive approval process. All product data is centralized into one platform. Now that all of the required information is in one place, it’ll be easier to identify the quantity of raw materials or other products necessary to purchase.
Security is another critical advantage of hosted procurement solutions. These platforms are designed with robust security measures to protect sensitive data, ensuring compliance with industry standards and regulations. Punchout solutions rely heavily on multiple external sites. The decentralization of information may pose greater security risks due to varying security practices among vendors.
Your procurement system may also allow for more comprehensive approvals based on product indicators. For example, a non-contracted product would allow for additional oversight. Additional visibility into purchasing ensures users are making the most cost-effective purchases.
Our Advice for Healthcare Procurement Professionals
When considering a PunchOut or a Hosted catalog solution, stay focused on your desired outcome and procurement goals. From a technological standpoint, PunchOut catalogs offer a simpler process than creating a Hosted catalog. While PunchOut catalogs may offer immediate time savings, they are limited to a supplier’s site features.
Hosted procurement solutions offer a more efficient, secure, and scalable approach to procurement compared to punchout solutions. Centralizing all purchasing activities, enhancing visibility and control, and providing robust support are just some of the benefits. Hosted solutions empower healthcare providers to optimize their procurement processes and focus more on delivering high-quality patient care.
If you’re a procurement manager seeking more comprehensive control and savings, Hosted catalogs are the better option. Hosted catalogs guarantee cost control, which is often a primary reason for putting a healthcare procurement solution in place.
Learn more about Direct Supply’s DSSI procurement solutions here.
DSSI currently hosts more than 500 integrated suppliers. For every healthcare partner, DSSI creates a customized procurement site featuring suppliers, categories, products and contracted prices specifically chosen by the organization. World-class order guide management capabilities offer incredible value and an unmatched level of control. By narrowing down the focus from tens of thousands of products, DSSI can help you save time and make a meaningful difference for your bottom line.
