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What is cXML and Why is it Important?

September 14, 2023September 14, 2023

What is cXML?

Commerce XML, also known as cXML, facilitates transactions between buyers and sellers’ systems. Much of cXML’s framework is influenced by EDI (Electronic Data Interchange), encompassing electronic purchase orders, invoices, and advanced ship notices. Punchout catalogs employ cXML as their primary communication standard, though alternative methods like OCI and xCBL also exist.

What is Punchout?

Examples of cXML Transactions:

cXML PunchOut
Order Message
cXML Order
Confirmation (Order Acknowledgement)
cXML Ship Notice (ASN)
cXML Invoice
cXML Quote Request
XML Quote

How does cXML work with PunchOuts?

Consider an example with:

A seller: Supplier Connections
A buyer: John Doe from Buyers Inc

Step 1: Initiation

When John at Buyers Inc. is ready to place an order for more supplies, he can log into the Buyers Inc. eProcurement system, and enter the Punchout store for Supplier Connections. Once inside the PunchOut store, John can browse the Supplier Connections products, select what he needs directly from the catalog, view real-time pricing and availability, and add items to his shopping cart.

Step 2: Checkout and Cart Transfer

When John is ready to check out, the cart’s contents are transferred back to the procurement system for Buyers Inc. This request notifies the Buyers Inc. procurement system and awaits requisition approval from the buyer’s manager or purchasing authority.

Step 3: Purchase Order

Once approved, a purchase order is generated and if Buyers Inc. supports electronic purchase orders the order is delivered to Supplier Connections by the eProcurement system via cXML.

Step 4: Order Confirmation and Shipment

Supplier Connections’ order fulfillment team will ship the order to Buyers Inc. followed by a shipment notification and an invoice. If Buyers Inc. supports advanced ship notices via cXML, the Supplier Connections system will send a direct electronic notification that the item has been shipped.

Step 5: Invoice and Purchase Generation

The final step in this process is receiving an invoice. If Buyers Inc. eProcurement platform supports electronic invoices, these can also be sent from Supplier Connections via our Punchout Catalog administration system with one quick click.

Contact us to learn more about how cXML purchase generation can help build your business.

cXML at EqualLevel

The integration of cXML facilitates seamless transactions between buyers and sellers. EqualLevel GO harnesses these capabilities to elevate procurement processes to new heights of efficiency and effectiveness. With cXML, buyers are empowered to checkout PunchOut catalogs with ease. The procurement journey, from initiation to invoice generation, is streamlined and transparent, fostering a seamless flow of information and transactions.

Through EqualLevel GO’s innovative approach, businesses can experience the transformative impact of cXML in a practical and user-friendly manner. The successful partnership between cXML and EqualLevel GO serves as a testament to the progressive evolution of eProcurement systems, exemplifying how technology can be harnessed to enhance connectivity, accuracy, and collaboration in the realm of business transactions. To unlock the full spectrum of advantages that the convergence of cXML and EqualLevel GO offers, we encourage you to reach out and explore how this dynamic duo can reshape and optimize your procurement processes.

Further reading:

For more information on PunchOut, check out our blog post, or review our website punchoutcommerce.com.
Click here to learn more about EqualLevel solutions and how they can help you!

Our team of experts is always happy to help, contact us to get started.

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The Power of PunchOut: Enhancing Your Sales Strategy with a PunchOut Store

August 17, 2023September 5, 2023

As more companies embrace eProcurement, it is important to utilize and understand how implementing a PunchOut store can help you drive sales, improve customer satisfaction, and streamline your supplier business strategy.

What is PunchOut?

PunchOut catalogs are eCommerce storefronts that allow institutions, government agencies, and corporate buyers to access and purchase a supplier’s products directly from their procurement systems. Similar to an online catalog where you would shop for clothing, PunchOut speeds the ordering and approval processes for issuing purchase orders.

PunchOut catalogs have specific requirements that make purchasing simple

Traditional B2B or B2G purchasing methods can get time consuming and difficult to manage, requiring buyers to visit multiple supplier websites independently. By creating an integrated experience between buyers and suppliers, PunchOut ensures cost-efficient, error-free transactions and strengthens vendor relationships.

Benefits of PunchOut

The PunchOut process brings numerous benefits to both buyers and suppliers. For buyers, having a unified storefront offers a user-friendly, streamlined shopping experience, reducing manual data entry and the risk of errors. Additionally, it ensures compliance with procurement policies and budget controls. For suppliers, PunchOut fosters closer relationships with buyers, leading to improved customer satisfaction and loyalty. It also simplifies the process of managing product catalogs and pricing, as updates are reflected in real-time on the buyer’s procurement system.

Step-by-Step PunchOut Process

Though it may seem complicated, the PunchOut process is actually very simple. Here’s the breakdown on how it works:

1. Initiation:

The PunchOut process begins when a buyer logs in to their eProcurement system (e.g., an eProcurement platform like EqualLevel Marketplace, Ariba, Coupa, etc). From their dashboard, they initiate the punch out process by selecting the preferred supplier they wish to connect with. This session allows real-time interaction and data exchange between the two platforms.

2. Shopping:

In order to shop, a buyer is “punched out” to their supplier’s website, seamlessly navigating to the catalog within the eProcurement system. With EqualLevel GO, supplier’s eCommerce websites become built-in extensions of their buyer’s procurement system.

Within the PunchOut catalog, the buyer can browse through the supplier’s products, view detailed descriptions, compare prices, and add items to their cart. All product information, including pricing and availability, is retrieved in real-time from the supplier’s database.

3. Cart Transfer:

After the buyer has finished shopping, they add selected items to a cart within the PunchOut catalog. When they are finished, the buyer’s cart will be transferred back to their eProcurement system to await approval.

4. Approval:

Back in the buyer’s eProcurement system, the cart content is reconciled, allowing their organization’s purchasing authority to review the order.

5. Purchase Generation:

Once the cart is approved, the buyer’s eProcurement system automatically generates a purchase order using cXML coding language containing the information from the PunchOut session. This order is sent to the supplier to fulfill, completing the purchase process.

PunchOut with EqualLevel

PunchOut is a transformative technology that revolutionizes the procurement process for all businesses. By integrating a buyer’s procurement system with their supplier’s catalog, PunchOut enhances user experience, improves operational efficiency, and empowers organizations with valuable data insights to make informed decisions.

With EqualLevel GO, we ensure a seamless and user-friendly PunchOut shopping experience, enabling your buyers to easily access, purchase, and checkout from your catalogs within our system. Our platform has full PunchOut capabilities and empowers clients with unparalleled cost efficiency. Get set up with a personalized PunchOut store toexpand your connections with unlimited access to EqualLevel clients, automate andsimplify the purchasing process, eliminate manual errors, and reduce administrative overhead. Choose EqualLevel to promote your business’ eCommerce excellence.

Further reading:

For more information on PunchOut, including guides and other tools, check out punchoutcommerce.com.
Click here to learn more about EqualLevel solutions and how they can help you!

Our team of experts is always happy to help, contact us to get started.

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GPO Utilizes eProcurement Marketplace to Bring Vendor Catalogs Under One Umbrella

May 1, 2023August 24, 2023

For GPO Catholic Purchasing Services (CPS), the use of PunchOut sites, where suppliers are responsible for their own product listings, is imperative. Handling the descriptions, photos, and other product details for their 200 vendors’ tens of thousands of products, on top of their other critical duties, would prove overwhelming for CPS’s seven employees. Instead, CPS utilizes EqualLevel’s eProcurement marketplace to bring all of their vendors’ catalogs under one umbrella.

About Catholic Purchasing Services

Founded in 1988 and located in Newton, Massachusetts, CPS began offering products at a discount to their members via a printed catalog before moving their catalog online in 2010. While CPS’s procurement service is offered through the Catholic Church, membership is open to 501(c)(3) faith-based organizations of all denominations. 25 percent of the market share, which is comprises churches, schools, and nursing homes, are CPS members.

CPS brands and partners include KI, OSV, Smith System, National Public Seating, Staples, Xerox, Sherwin Williams, Slabbinck, School Health, Virco, Quadient, Root Candles, Cavanagh, Cintas, and School Specialty, among many others.

EqualLevel’s eProcurement Marketplace

In 2019, CPS conducted a search for a robust eProcurement system that could be integrated with their existing ERP, NetSuite SuiteCommerce. The organization was impressed with EqualLevel’s partnerships with Staples and other large suppliers. The idea of leveraging EqualLevel’s relationships to offer more vendors and products to their members was appealing. “EqualLevel was by far the best value for the investment,” said O’Hara. “We looked at a lot of other sites that were more expensive and they could not deliver the connections that EqualLevel’s marketplace already had built right in,” she continued. “The technology behind their platform is sound. It gives us a sense of security knowing that EqualLevel is hosting everything and has robust security and connection.”

With just one click, EqualLevel’s solution gives CPS’s roughly 9,000 members access to hundreds of vendors and their products, at special contract pricing and with extended terms. “With EqualLevel’s PunchOut sites, we don’t need to host SKU’s–that’s all done via the suppliers. The marketplace largely supports itself so we don’t have to worry about anything except marketing the site,” said Mary Schell O’Hara, CPS CEO since June 2022.

Growth

CPS’s site includes six critical vendors brought to the marketplace through partnerships with EqualLevel, including Staples. The ability to offer these vendors’ products at a discount to members has had a significant positive impact on the organization’s growth and draw. Since adopting the EqualLevel marketplace in 2019, CPS’s growth in numbers of transactions and dollars has been 25 percent year over year, even with the impact of the Covid-19 pandemic factored in.

Sung Oh, EqualLevel’s Vice President of Technical Operations & Support, said of the relationship, “We have enjoyed our partnership with Catholic Purchasing Services and are proud of the tailored marketplace solution we have created to meet their needs. We’ve integrated with their WordPress and NetSuite SuiteCommerce applications for ease of access and a streamlined shopping experience for their members.”

Onboarding New Suppliers

CPS continues to work closely with EqualLevel to bring new vendors to their marketplace. They recently added a partner of many years, Regency Lighting, after receiving requests from members to add a lighting supplier to the site. CPS has been working with Regency Lighting and EqualLevel to connect the supplier’s PunchOut site to the marketplace. “Sung and his team are very easy to work with. We have had no issues with technical help and expertise. The support they have offered has been tremendous,” said O’Hara. Regency Lighting will go live on CPS’s site in early 2023.

The Future for CPS and EqualLevel

In the future, CPS hopes to take advantage of some of the marketplace’s other functionality, including the built-in approval workflow component. This piece allows members to analyze and control spend, as well as put approvals in place. “We are planning to grow the platform by adding new suppliers. We want to leverage EqualLevel’s partnerships and also bring on new vendors. We definitely have EqualLevel in our long term plans,” O’Hara concluded.

For more information on Catholic Purchasing Services, visit www.catholicpurchasing.org.

Click here to read how EqualLevel has helped other cooperatives and GPO’s.

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Building Your Business Case to Drive Operational Procurement Savings With eProcurement

February 27, 2023August 24, 2023

EqualLevel’s April Marzzacco knows how important it is to present a well-researched and evidence-backed business case when trying to garner approval to drive efficiency and process improvement in a difficult fiscal climate. Prior to joining EqualLevel, she was an entrepreneur and public sector change agent. In this article, Marzzacco outlines the five key elements she recommends you include to create a business case that maximizes your chances for approval.

Purchasing departments across the country are reporting that they are busier than ever with staff shortages, budget cuts, and ongoing supply chain issues. It is not uncommon for agencies that are still limping along with manual entry to be struggling with the volume of purchase orders coming in and high bookkeeper burnout, while also dealing with maverick spend and non-compliant purchasing.

Whether it is these challenges or others that your department is facing, you may believe now is the time to find a solution that will streamline your purchasing process. Based on your research, and recommendations from other agencies, you may have already decided that implementing an eProcurement marketplace is just that solution.

Download April Marzzacco’s comprehensive Guide to Building a Business Case for an eProcurement Marketplace where the author goes even more in-depth on what is needed to craft a winning Business Case.

What is a business case?

Presenting a business case is considered the best way to introduce new initiatives to stakeholders. According to projectmanager.com, a business case is a presentation or document that outlines why a project should be executed, and how its benefits outweigh its costs. The goal of a business case is to convince stakeholders of a project’s value, and that the project you are proposing is a sound investment in which they should direct resources. To build a business case for EqualLevel’s eProcurement system, it is important to provide higher-ups with the information they need to understand both the importance of automating, and the return on investment (ROI).

There are many recommended formats for structuring a business case but in general, it should cover the following five elements:

1. The Challenge

In this first section of your business case, you will outline your current process and the reasons why you believe change is necessary. Challenges you might include:

Manual entry is slowing down the purchase process
Manual entry causes more errors
Bookkeeper burnout
Maverick spend
Non-compliant purchasing

You should also include the costs associated with your current system in this part of the business case. These could include any costs related to software, the wages paid to employees who manually enter requisitions and purchase orders, as well as the costs associated with continuing to overpay for goods and services.

TIP: When tallying your current costs, if there is information you are not able to find within your organization, industry benchmarks should suffice.

2. The Solution

In this section of your business case, you will present the solution you are recommending, namely, implementing EqualLevel’s software. This will be where you define what an eProcurement system is. Here is an example: “An eProcurement marketplace is integrated with an organization’s ERP system and offers a single, seamless platform that facilitates all of the processes associated with the shop-order-pay transaction. EqualLevel’s dashboard offers a consumer shopping-like experience where users can shop from all of their organization’s approved suppliers in one place. With this set-up, best value options are displayed and organizations report higher user acceptance and greater compliance.”

This is also the part of the business case where you will present how the software works. The best way to explain the functionality and capabilities of EqualLevel’s AI-powered software is to see it in use. EqualLevel creates customized software demos so you, and your organization’s stakeholders, can see the marketplace in action. The demos allow interested parties to get hands-on experience with the system and it lets them see how EqualLevel’s Savings Advisor (ELSA) locates savings in real-time, while a user shops.

3. The Cost

EqualLevel is able to provide a worksheet to quickly calculate the results you can reasonably expect to achieve through deployment of its eProcurement marketplace. The worksheet divides savings into two areas: “soft” savings, where process costs will be reduced (the resources may be reallocated to other, more value-added, activities), and “hard” savings, where costs will actually be reduced (using ELSA). Once you have calculated your expected savings, you can subtract that from the cost of the marketplace software to determine your ROI.

4. The Benefits

The next section in a business case should include the benefits your organization can anticipate from implementing your initiative. In this case the benefits of an eProcurement marketplace include:

Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.
Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified.
Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.
Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable Insights.

5. The Timeline

Generally, an eProcurement marketplace can be implemented in 60 to 90 days and often a return on investment can be achieved within a single fiscal year. EqualLevel can provide a generic timeline for implementation to present to stakeholders or an estimated timeline can be created that is tailored to your organization’s unique situation.

A well-organized and thoughtful business case could be the difference between being able to implement an eProcurement marketplace, or not.

This post was originally published on September 6, 2022 and updated on February 27, 2023.

About the Author

April Marzzacco brings over 20 years of eCommerce and procurement experience to her role as Senior Manager, Demand Generation & Partnerships for EqualLevel. Prior to EqualLevel, she served as a Business Process Analyst at the Lee County School District where she was responsible for production support, analysis, process documentation, training, and process improvement. She also worked in the district’s Procurement Department where she was instrumental in integrating both the EqualLevel marketplace and an eSourcing platform.

April may be reached at amarzzacco@equallevel.com or via LinkedIn.

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Utilizing Technology to Reduce Bookkeeper Turnover in the Public Sector

September 12, 2022August 24, 2023

In the U.S. today, employee turnover is rising while at the same time the number of applicants for vacant positions is falling. According to a 2021 study by NEOGOV, “about a quarter of all current public sector job postings are getting seven applications or fewer,” much less than the 25 applicants they need to land one hire, according to NEOGOV.

None of this is news to public sector business departments, who have long struggled with high bookkeeper turnover rates. But with hiring prospects so bleak, shouldn’t agencies be considering ways to retain the staff they have?

In a 2021 article by routefifty.com, it was reported that “public-sector organizations devote considerable resources to hiring, but they often overlook retention.” This despite the fact that the financial impact of training and replacing staff members can come with a high price tag for organizations. According to the same article, the costs associated with turnover can be as much as “150% of (an) employee’s annual salary.”

Public Sector Bookkeeping

Bookkeeper turnover continues to be a problem in many public sector agencies. The manual entry involved in the job can be both tedious and time-consuming. It can leave bookkeepers with little time to perform other functions required of their position, and is often cited as a contributor to job dissatisfaction.

Bookkeepers are expected to be knowledgeable of, and to follow, policies and procedures for purchasing goods and services (i.e., correct use of bids, contracts, supporting document requirements, etc.), as well as a host of other competing responsibilities. Among their numerous duties, ordering supplies sits close to the top of the list and requires them to follow specific procedures while at the same time, in a lot of cases, having to use manual processes to enter lengthy requisitions. This alone can take up a large part of their day and come with a high margin for error.

In many organizations, bookkeepers are also tasked with general administrative duties on top of their already overwhelming responsibilities. Despite the important nature of their work and the stress involved, in the United States, the average salary for bookkeepers is $45,560, below the national average salary of $51,480 reported by the U.S. Bureau of Labor Statistics.

Lean Six Sigma Project: Bookkeeper Burnout

In 2018, a team vying for the Lean Six Sigma Green Belt Certification conducted a survey to uncover why bookkeepers employed at one of the largest school districts in the country were leaving. The turnover rate at 26 percent was significantly higher than the widely thought “acceptable rate” of 10 percent for turnover.

Serving close to 100,000 students, the school district employed 85 bookkeepers working in 119 schools. The 26 percent turnover rate amounted to roughly 22 employees leaving their positions per year. The impact for the district in terms of cost of hiring and training, additional support needed after training, and purchasing errors and delays, was sizable.

The Lean Six Sigma team distributed a survey to the district’s 85 bookkeepers, of which 75 percent responded. Almost half reported that they had considered leaving their job, citing stress as the biggest issue they had with their position. 19 bookkeepers responded that they did not have enough time to complete their bookkeeper responsibilities each day, that the amount of work they were expected to perform was not reasonable, and that they did not receive adequate training.

April Marzzacco, a team member on the project, said of the results, “while suspected, the results were still shocking. The number of bookkeepers that were thinking of leaving due to job dissatisfaction was an eye opener for the district. We knew we needed to make improvements to increase their satisfaction, or face a hiring crisis.”

Technology as a Solution

In a lot of organizations, bookkeeper turnover can be traced back to the largely manual nature of the position. In many agencies still operating under a paper-based system, the procurement process is laborious, time-consuming, and error-prone. One of the solutions proposed by the Lean Six Sigma team as a result of their Green Belt project, was to implement new technology to automate purchasing at the district. Automating can lead to faster cycle times and improved productivity, while the elimination of paper and manual steps can free up time for employees to focus on more critical initiatives. “We discussed how using technology to automate some of the bookkeepers’ processes would allow them to spend less time on menial tasks and more time on value added projects. We believed that this would lead to greater job satisfaction and an increase in intrinsic reward,” said Marzzacco.

What is eProcurement?

An eProcurement marketplace is integrated with an organization’s ERP system and offers a single, seamless platform that facilitates all of the processes associated with the shop-order-pay transaction. Because an eProcurement system houses all vendors under a single interface, users are limited to purchasing from only those vendors that have been approved. This allows the eProcurement marketplace to be utilized by more employees, resulting in less reliance on bookkeepers for ordering. It also drastically cuts down on manual entry, allowing bookkeepers to focus on the more value-added duties of their position.

After deploying an eProcurement marketplace in her own school district, Berea City Schools’s bookkeeper Becky Snyder reported the new system was straightforward, affordable, and required minimal user training. “It’s simple, just like we shop online at home,” she said.

In order to combat bookkeeper burnout, organizations must consider automating procurement to eliminate time-consuming manual entry and allow other end-users to make compliant purchases. An effective eProcurement system can help with bookkeeper retention, saving agencies both time and money.

Sources:

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5 eProcurement Myths (And Why They Aren’t True)

September 6, 2022August 24, 2023

While the benefits of eProcurement are well known, there are still many agencies today that continue to utilize outdated and inefficient systems for purchasing. Of those organizations that have adopted online bidding and purchasing procedures, many still have not addressed the administrative inefficiencies that exist. From increased transparency and productivity, to proven hard dollar savings, eProcurement offers a solution for many of the challenges organizations face. So why aren’t more agencies adopting eProcurement? Read on to learn about the eProcurement myths that persist today, and why advancements in technology have rendered them moot.

Five Common eProcurement Myths

Myth 1:

With upfront costs for hardware as well as licensing fees, the price tag for implementation can easily stretch into the six figures.

FACT: Today’s cloud computing offerings cost much less than their predecessors. Without hardware or licensing fees required, only subscription fees, eProcurement is much more financially accessible than it once was.

Myth 2:

It is costly and complicated to integrate with an organization’s ERP system.

FACT: Advancements in technology have made integrating with an organization’s ERP easier than ever. In an American City & County article titled Removing The Obstacles To E-Procurement Adoption they report, “The availability (and low cost) of new technology standards such as XML have largely alleviated concerns about integrating e-procurement with back-end financial systems.” In fact, the syncing with an organization’s ERP allows items purchased to be assigned appropriate commodity codes to ensure transactions are posted appropriately for accounting purposes.

Myth 3:

For organizations with small or non-existent IT departments, management of an eProcurement platform is a drain on resources.

FACT: Cloud-based systems that offer a multi-vendor marketplace should only need to engage an organization’s IT department at initial ERP integration. eProcurement providers can easily manage supplier enablement, even for those vendors without existing punchout sites, eliminating the strain on buyer procurement and IT departments.

Myth 3:

For organizations with small or non-existent IT departments, management of an eProcurement platform is a drain on resources.

Myth 4:

Due to additional costs to suppliers and complex onboarding processes, large suppliers will stop selling to local governments that adopt eProcurement measures.

FACT: Today’s eProcurement marketplaces integrate all of an organization’s current suppliers at no extra cost to the supplier. What’s more, they can seamlessly incorporate suppliers regardless of technological capabilities or chosen platforms. In fact, eProcurement can streamline supplier engagement with the agency and help reduce operating costs for all parties involved.

Myth 5:

eProcurement systems prohibit organizations from working with small local businesses because it is either too costly for them, or just not feasible.

FACT: eProcurement systems now have the ability to integrate suppliers regardless of their size or technological capabilities. In fact, the creation of fully-featured eCommerce stores for local businesses, specifically designed to support punchout commerce, have been responsible for propelling countless local suppliers into the world of eProcurement.

Source: https://www.americancityandcounty.com/2011/08/01/removing-the-obstacles-to-e-procurement-adoption/

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Creating a Business Case for eProcurement

September 6, 2022August 24, 2023

Procurement departments across the country are reporting that they are busier than ever with staff shortages, budget cuts, and ongoing supply chain issues. Whether it is these challenges or others that your department is facing, you may believe now is the time to find a solution that will streamline your organization’s procurement process. Based on your research, and recommendations from other agencies, you may have already decided that implementing an eProcurement marketplace is just that solution. Creating a formal business case for eProcurement is the best way to present this new initiative to achieve stakeholder approval.

What is an eProcurement business case?

According to projectmanager.com, a business case is a presentation or document that outlines why a project should be executed, and how its benefits outweigh its costs. The goal of a business case is to convince stakeholders of a project’s value, and that the project you are proposing is a sound investment in which they should direct resources. To build a business case for EqualLevel’s eProcurement system, it is important to provide higher-ups with the information they need to understand both the importance of automating, and the return on investment (ROI).

The Five Elements of a Successful Business Case

There are many recommended formats for structuring a business case but in general, it should cover the following five elements:

1. The Challenge

In this first section of your business case, you will outline your current process and the reasons why you believe change is necessary. Challenges you might include:

Manual entry is slowing down the purchase process
Manual entry causes more errors
Bookkeeper burnout
Maverick spend
Non-compliant purchasing

TIP: When tallying your current costs, if there is information you are not able to find within your organization, industry benchmarks should suffice.

2. The Solution

3. The Cost

4. The Benefits

The next section in a business case should include the benefits your organization can anticipate from implementing your initiative. In this case the benefits of an eProcurement marketplace include:

Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.
Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified.
Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.
Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable Insights.

5. The Timeline

A well-organized and thoughtful business case could be the difference between being able to implement an eProcurement marketplace, or not. Should you need help with this process, or for more information, go to www.equallevel.com.

About the Author

April Marzzacco is a Strategic Sales Consultant for EqualLevel where she brings over 20 years of eCommerce and procurement experience to her role. Prior to EqualLevel, she served as a Business Process Analyst at the Lee County School District where she was responsible for production support, analysis, process documentation, training, and process improvement. She also worked in the district’s Procurement Department where she was instrumental in integrating both the EqualLevel marketplace and an eSourcing platform.

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eInvoicing: Why It’s So Important

August 25, 2022August 24, 2023

For the past several years, the Federal Reserve System has encouraged businesses to switch from paper-based systems to electronic invoicing, or eInvoicing, to streamline payments across the nation. In a paper published by the Federal Reserve, The Strategies for Improving the U.S. Payment System, the agency called for businesses to implement the complete automation of transactions from the moment a purchase order is submitted, all the way through to payment and reconciliation.

Benefits of eInvoicing

In many organizations still operating under a paper-based system, invoice approval and reconciliation are the most laborious, time-consuming, and error-prone steps in the procurement cycle. Paystream Advisors estimates $4 to $8 in processing costs can be saved for every paper invoice converted to an eInvoice. With organizations handling thousands of invoices, this adds up to significant savings. But processing costs are not the only benefit. According to the Federal Reserve Bank of Minnesota paper, U.S. Adoption of Electronic Invoicing: Challenges and Opportunities, “while a business can accrue benefits from adopting electronic payments alone, materially greater benefits are gained in lower costs, cash management, fewer errors, risk mitigation and transparency when the entire process is electronic.”

How eInvoicing Works

eInvoices are created, sent, and received in an automated, structured electronic format. This allows employees to quickly and easily approve suppliers’ invoices for payment, with or without a purchase order. Once approved, invoices can be exported or directly integrated into an accounts payable system. In the simplest terms, eInvoicing enables sellers to automatically generate and send invoices to customers digitally, and customers can in turn process and pay those invoices digitally. This results in increased control of overpayments, reduced data entry and document handling costs, and accelerated invoice approval.

EqualLevel’s eInvoicing Software

EqualLevel’s eInvoicing software creates an efficient online system that integrates seamlessly with an organization’s accounting or ERP system. With the software, eInvoices are automatically entered into an accounts payable system where three-way matching processes ensure accuracy before payment completion. Through cXML, eInvoicing links internal financial workflows to payment systems for both suppliers and buyers. By integrating the two, organizations can make practical strides in their efforts to automate and enhance procurement.

eInvoicing is essential for organizations looking to streamline their payment processes. Go to www.equallevel.com today for more information on EqualLevel’s eInvoicing capabilities.

Sources:

The Federal Reserve Bank of Minnesota paper, “U.S. Adoption of Electronic Invoicing: Challenges and Opportunities”

The Federal Reserve System paper, “The Strategies for Improving the U.S. Payment System.”

Further Reading

Click here to learn more about EqualLevel’s eInvoicing software.

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How EqualLevel GO “Levels the Playing Field” for Small & Disadvantaged Businesses

August 19, 2022August 24, 2023

When making purchases, procurement professionals expect the same functionality they experience as consumers shopping online at home. They want a seamless experience between their purchasing or Enterprise Resource Planning (ERP) system, and their approved vendors’ most up-to-date product and pricing information. In order to do this, businesses need to have a PunchOut store or the capability to PunchOut. Because this can be technologically complex, public sector organizations often inadvertently favor larger, more sophisticated vendors with this capability, and small businesses can get left in the dust.

“Every year since we have had our PunchOut store, sales have increased.”

Robin Peterson
Midwest Technology Products

How can small/disadvantaged vendors compete against the big guys, especially if don’t have an online presence already?

EqualLevel GO gives small OEMs or distributors, who may have limited IT capabilities, the opportunity to establish a PunchOut catalog store, or PunchOut store, that integrates with ERPs. This allows small companies to appear alongside their larger competitors.

A PunchOut store is a web-based, supplier-managed catalog storefront. The PunchOut store can be custom built on top of an existing eCommerce site or, more commonly, managed for the supplier by a third-party solution provider. Buying organization employees can access the supplier’s PunchOut store directly from their eProcurement marketplace, also known as “punching out” to the supplier’s site, or “PunchOut.” PunchOut allows the organization to maintain full control over order approval and payment.

How PunchOut works

The customer connects, or “punches out,” from their company’s system to a supplier’s eCommerce site. The PunchOut site identifies the buying organization and displays the appropriate products and prices. The shopper searches and selects goods they wish to purchase and adds them to their cart on the PunchOut site. At the end of the shopping session, the shopper checks out, which sends descriptions and prices of the goods placed in their cart to their ERP system.

Benefits of EqualLevel GO

EqualLevel GO’s PunchOut commerce site is scalable, easy-to-use and administer, and is provided at no charge to sellers when combined with EqualLevel’s buy-side eProcurement Marketplace solution.

EqualLevel GO customers experience tangible benefits, such as:

Increased Average Order Value

A PunchOut catalog store, combined with up-selling and cross-selling, is a powerful combination that increases total and average order value. Suppliers can show related and complementary products in their PunchOut store shopping cart and can anticipate and make adjustments that will increase the average sale.

Greater Ability to Attract Big Customers

When it comes to gaining large customers, a PunchOut catalog store is a win-win. Big enterprises are often on the lookout for suppliers who can allow them to order directly through their ERP procurement system. For many large organizations, PunchOut is a ”must-have” for engagement.

Improved Sales Productivity

A PunchOut catalog store streamlines the sales process because it produces more accurate orders. This means less time is spent correcting orders, which improves response times and overall productivity.

Improved Customer Relationships

By simplifying the purchasing process, suppliers strengthen customer relationships by receiving and responding to orders more quickly.

Click here to learn more about EqualLevel GO.

Further Reading

Small/disadvantaged customers like Midwest Technology Products, GBEX, and El Paso Office Products have implemented, or are in the process of implementing, EqualLevel GO to ensure their products are showing up in the search results of big buyers. Below are their stories:

Supplier Spotlight: Midwest Technology Products

Supplier Spotlight: El Paso Office Products

Supplier Spotlight: GBEX

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Blog

McKinsey Recommends SLED Digitize Procurement, Payables to Optimize Public Sector Savings

August 9, 2022August 24, 2023

Every year the state, local and education (SLED) procurement market spends a staggering $1.5 trillion dollars annually on goods and services. In 2018, after analyzing more than 700 procurement efforts, management consulting firm McKinsey & Company concluded that at 28 percent, the public sector has the potential for more savings than that of any other sector. In round dollars, this amounts to $400 billion in public sector savings by optimizing procurement.

Online Tools Reduce Administrative Burdens

The public sector has long been plagued by the inefficiencies and costs associated with manual requisitioning, ordering, invoice reconciliation, and payment processing. According to McKinsey, online tools can reduce these administrative burdens. Procure-to-pay automation improves the efficiency and effectiveness of the procurement and payables processes by digitizing manual tasks and leveraging transparency to improve decision-making.

Innovating with a best-of-breed eProcurement and eInvoicing platform optimizes execution across all processes associated with the rec-order-pay transaction. A well-designed solution helps procurement and finance to streamline operations.

The benefits of eProcurement and eInvoicing are numerous:

Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.

Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified.

Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.

Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable insights.

There is no doubt “the use of modern technology can take a big chunk off of public-sector bills” and the time to automate procure-to-pay is now. By improving efficiencies, the SLED market has the opportunity to generate savings that can help to offset the budget pressures they are facing.

By Orville Bailey, CEO, EqualLevel.

Sources

How smarter purchasing can improve public-sector performance

Now is the Time for Procurement to Lead Value Capture

Click here to learn more about EqualLevel’s eProcurement solution.

Click here to learn more about EqualLevel’s payables solution.