Digital procurement only works if systems talk to each other properly. But what is actually behind a PunchOut and why are there two standards for it: OCI and cXML? In this article, we first clarify the basics and then show which approach really makes sense for which procurement and IT landscape.
Digital procurement often sounds simpler than it is in everyday life: systems must talk to each other, data must flow smoothly and, ultimately, purchasing should be faster, more transparent and error-free. But this is precisely where it is decided whether a company really works efficiently with modern procurement processes. Two technical standards play a central role here: OCI and cXML. Both solve the same problem but in two different ways.
Before we clarify which standard is better suited to which company, it is worth taking a look at the basics: What is a PunchOut anyway? How does the connection to an e-procurement system work and why are there two different protocols?
PunchOut or PunchOut catalogue describes a B2B application that enables a buyer to access a supplier's external online shop directly from their own procurement system. In short, a PunchOut is the access to the provided product catalogue and the subsequent transfer to the calling procurement system.
Data such as prices, article numbers, quantities, units and also manufacturer and supplier information are transferred as well as tax and account assignment values if required.
OCI is the abbreviation for Open Catalog Interface. It is a protocol for exchanging shopping baskets between merchandise management systems and other supplier catalogues. The OCI protocol is, so to speak, the technical interface via which a purchasing system (e.g. SAP, Jaggaer or Coupa) is directly linked to an external online shop or product catalogue. The process is as follows:
Step 1: The buyer clicks on "Open catalogue" in the ERP: The system automatically transfers login and contact data to the shop.
Step 2: The shop opens automatically (PunchOut): The user sees his customised range, prices, budgets, delivery address and so on.
Step 3: The buyer places items in the shopping basket.
Step 4: The order is not placed within the shop. Instead, the shopping basket is transferred back to the ERP via an OCI data record
Step 5: Approvals and orders continue to run in the ERP: budget check, approval workflow, goods receipt, invoices - everything is detailed in the ERP.
very easy implementation
standardised data format
works in SAP ECC, SAP s/4HANA
also works in many non-SAP systems
very stable and reliable
cXML means Commerce eXtensible Markup Language. It was developed by Ariba at the end of the 1990s as a protocol for the transmission of business documents between retailers and suppliers. Today it is mainly used as a data exchange format for catalogue-based procurement. The process here is therefore similar to OCI, but technically more modern and significantly more flexible.
Step 1: The buyer clicks on "Open PunchOut catalogue" in his procurement system.
Step 2: The system sends a so-called cXML PunchOutSetupRequest (with user, cost centres, session ID etc.).
Step 3: The shop opens automatically and displays customer-specific product ranges, prices, contracts and budgets.
Step 4: The user places their items in the shopping basket.
Step 5: The shopping basket is sent back to the purchasing system as a cXML PunchOutOrderMessage.
very flexible and expandable
also supports further transactions (such as the actual order or the transmission of delivery information)
ideal for modern e-procurement platforms (e.g. Ariba, Coupa, Jaggaer)
supports complex purchasing processes
clean, structured XML data**
suitable for international and multi-level organisations
OCI and cXML connect your purchasing system with an external shop. However, they differ significantly in structure, flexibility and areas of application. In the following, we will show you how these standards differ:
OCI** is a standard developed by SAP and is particularly widespread in the classic ERP environment.
cXML** originates from the environment of modern procurement platforms such as SAP Ariba, Coupa, Jaggaer, Workday, Proactis or Oracle Procurement.
OCI works with simple parameter lists (name=value). It implements quickly, is less complex and ideal for standard shopping baskets.
cXML** is based on XML structures with clear hierarchies. It offers more fields and context, making it perfect for more complex purchasing processes.
OCI is above all a lean protocol. It fulfils most requirements in medium-sized businesses.
cXML** is far more flexible and can map additional information. This includes contract information, multi-level approvals as well as individual budget structures and dispatch and tax logic.
OCI requires very little effort with a fast go-live and few test cycles.
cXML** usually requires more effort, as validations, certifications and structured XML data must first be tested.
The decision as to which protocol you should use for your company depends less on your products and more on your purchasing system and your processes. We explain below when OCI is more suitable and when cXML is better.
work with SAP ECC or SAP S/4HANA
use a classic ERP without extensive procurement modules
are looking for a fast and pragmatic solution
order processes are clearly structured and less complex
above all order standard items or consumables
use a modern e-procurement platform (Ariba, Coupa, Jaggaer etc.)
need to map multi-level approvals, cost centre structures or complete purchasing logic**
work internationally or have high compliance requirements**
use highly personalised product ranges, contracts or supplier relationships
value deep integration and expandability
To summarise: OCI is particularly suitable for companies looking for a lean and robust solution for their procurement channels, especially if they mainly use systems within the SAP landscape.
cXML, on the other hand, is the flexible, enterprise-compatible standard and ideal for modern purchasing organisations that want to map more complex requirements in their procurement processes.
Both OCI and cXML solve the same problem, but speak different technical languages. With our SaaS solution PunchCommerce, you can easily set up and design the connection of your online shop to your e-procurement system yourself - both via OCI and via the cXML protocol**.
If you don't have your own online shop and work with a product catalogue, for example, this is also no problem. Thanks to our Hosted Catalog, we can map your product catalogue directly in PunchCommerce and thus enable a connection via OCI or cXML for your customers.
If you have any questions or suggestions, just send us an email hallo@punchcommerce.de or call us at +49 6142 / 953 80 - 60. We appreciate your feedback!
Back to the journal