Ariba Seller Solutions What Is PunchOut? Ariba Seller Solutions © 2014 Ariba, Inc. All rights reserved. 1

Contents Overview of PunchOut Benefits of PunchOut PunchOut Demonstration Where to Go for Help © 2014 Ariba, Inc. All rights reserved.

Section 1 Overview of PunchOut © 2014 Ariba, Inc. All rights reserved.

What is PunchOut? Procurement System Web Catalog PunchOut To find products and services on the Internet when creating a local requisition. PunchOut Site An electronic catalog on a remote website that is accessible from a procurement system. Internet Buyer Supplier © 2014 Ariba, Inc. All rights reserved.

What is PunchOut (Continued)? A protocol used by a buyer’s procurement system to communicate with seller catalogs over the Internet. Creates a shopping cart on the seller’s site and moves it to the user’s local requisition. Other vendors call it ShopOut, TapOut, or Roundtrip. © 2014 Ariba, Inc. All rights reserved.

What is a Procurement System? An application used by a buying organization to manage and control purchasing. Examples: Ariba Procure-to-Pay or Ariba Buyer SAP Commodity Procurement or Oracle Procurement Other Legacy Systems Handles manager approvals, budgeting, cost centers, and reporting. By supporting PunchOut, you integrate with your customer’s procurement system, which ties the customer to you as a vendor. © 2014 Ariba, Inc. All rights reserved.

Purchasing Process To purchase a product or service, a user in the buying organization: Logs into the procurement system. Creates a purchase requisition. Adds desired items by browsing: Local catalogs PunchOut catalogs Submits the requisition for approval. © 2014 Ariba, Inc. All rights reserved.

Buyer’s Procurement System How Does PunchOut Work? Buyer’s Procurement System Your Website Catalog Item A $100 Item B $120 Item C $125 Requisition Item A $100 Item C $125 Check Out An employee logs into the buyer’s procurement system. The selected items appear in the requisition. The employee creates a purchase requisition. The employee punches out to your website. The employee shops your website and selects some items. The employee clicks your “Check Out” button. © 2014 Ariba, Inc. All rights reserved.

Section 2 Benefits of PunchOut © 2014 Ariba, Inc. All rights reserved.

Display specific content Keep your branding Business Benefits Market to Customers Display specific content Keep your branding Customers come to your website, where you have complete control of the shopping session and your marketing. Identify shoppers and tailor the display of products and services and their prices. Use your existing branding to provide customers with a unique shopping experience. © 2014 Ariba, Inc. All rights reserved.

Show live prices and availability Receive more accurate orders Technical Benefits Show live prices and availability Receive more accurate orders Your website is the best place to display your offerings, current prices, and product availability. No worries about orders that have incorrect or outdated product numbers or prices. All of that information comes directly from your live website. © 2014 Ariba, Inc. All rights reserved.

Better Customer Satisfaction Personalize the shopping experience Keep existing customers Your website can identify the user and show pages that are personalized for that user. PunchOut integrates your company with your customers. The process of buying from you becomes easier than ever, which increases the "stickiness" of your company versus your competitors. © 2014 Ariba, Inc. All rights reserved.

Cross-sell and up-sell Gain new customers Sales Growth Cross-sell and up-sell Gain new customers PunchOut brings customers to your website. Shoppers can browse your offerings and are more likely to add them to their requisitions. PunchOut sites are attractive to prospective customers; PunchOut is an important differentiator. © 2014 Ariba, Inc. All rights reserved.

Alternatives to PunchOut To better understand the benefits of PunchOut, here are the alternative ways of providing catalog content. Static Catalogs Catalog Interchange Format (CIF) Difficult to format your information. Difficult to ensure that each customer has the latest content. High maintenance—typically one catalog for each customer. Restrictive format has no room for your marketing. © 2014 Ariba, Inc. All rights reserved.

Alternatives to PunchOut (cont’d) 3rd-Party Catalog Services (Hand your catalog to someone else to convert) This alternative has the same problems as using CIF files. You give up control of how your offerings appear. Less agile. Takes time to get changes in front of users. Difficult to ensure each customer has the latest content. Restrictive format has no room for your marketing. © 2014 Ariba, Inc. All rights reserved.

Alternatives to PunchOut (cont’d) Ad-Hoc Orders (User entered, non-catalog items) Incorrect pricing Inaccurate descriptions and part numbers Cannot be processed automatically by your back office systems Are typically not usable by other departments These orders usually require human intervention at your company, so you don’t receive the benefits of end-to-end automation. © 2014 Ariba, Inc. All rights reserved.

Reasons for Supporting PunchOut Sellers have many reasons for supporting PunchOut. These are just a few of the more common reasons. Your customer asked for PunchOut You want to differentiate your company from your competitors Your offerings are best presented through your own website © 2014 Ariba, Inc. All rights reserved.

PunchOut is for … Thick Catalogs Office Supplies MRO Products Lab Supplies Distributors These catalogs run for hundreds of pages. There are often many, similar items, with only one differing characteristic, such as color or size. They might contain complex drawings or photos. © 2014 Ariba, Inc. All rights reserved.

PunchOut is for … Services Temporary or Permanent Labor Business Support Services Marketing or Trade Show Services Janitorial or Landscaping Services PunchOut is ideal for complex services, which are services with materials. For example, your catalog might describe the truck servicing you provide and also include truck parts. © 2014 Ariba, Inc. All rights reserved.

Configurable or Customizable Products PunchOut is for … Configurable or Customizable Products Printing Marketing Materials Build-to-Order Equipment Products with Many Options These are products that require customers to specify a configuration before purchasing. You can take advantage of your existing investment in the software that presents these configurations. © 2014 Ariba, Inc. All rights reserved.

Products with Extensive Marketing or Documentation PunchOut is for … Products with Extensive Marketing or Documentation Trucks, Tractors, or other Vehicles Computers and Software Machine Tools Your customers might want to read user’s guides or configuration guides to decide on the best products for their application. PunchOut is the best way to make them available. © 2014 Ariba, Inc. All rights reserved.

PunchOut is for … Contract Prices Display correct prices or products for each buyer. Real-time prices or availability. No incorrect or outdated prices. You probably offer different prices, products, or services depending on the customer. PunchOut allows you to detect who is punching out before you display your offerings or their prices. © 2014 Ariba, Inc. All rights reserved.

PunchOut is for … Offerings that you want to differentiate through your marketing efforts: “Buyers who bought this also bought...” “Welcome back, Barbara.” Customer reviews Real-time stocking and availability status Short-term specials or sales PunchOut brings procurement-system customers to your Website, where they can enjoy the shopping experience into which you’ve put so much effort. © 2014 Ariba, Inc. All rights reserved.

PunchOut Demonstration Section 3 PunchOut Demonstration © 2014 Ariba, Inc. All rights reserved.

This demonstration shows Ariba Procure-to-Pay. PunchOut Demo This demonstration shows Ariba Procure-to-Pay. We’ll purchase a wireless router. Ariba Procure-to-Pay is a cloud-based application for buying both direct and indirect goods and services. This demo shows a PunchOut site managed by Software House International. © 2014 Ariba, Inc. All rights reserved.

Create a Requisition The first step is to search the local catalog for items to purchase. The user has logged in to Ariba Procure-to-Pay and has begun the creation of a purchase requisition. © 2014 Ariba, Inc. All rights reserved.

Select a PunchOut Seller Behind the scenes, the procurement application sends a PunchOut request message to the Ariba Network. The Network authenticates it and forwards it to the supplier’s PunchOut site over the Internet. The PunchOut site redirects the user’s browser to the start page to begin shopping. The user starts a PunchOut session by clicking the seller name. The user decides to look for the item at Software House International. The icon here indicates that this supplier has a PunchOut site. © 2014 Ariba, Inc. All rights reserved.

Start Shopping on the PunchOut Site wireless router The PunchOut site appears in a frame in the user’s browser. At this point, the user is interacting directly with the PunchOut site. The user finds the product, either through a text search or by navigating to it. © 2014 Ariba, Inc. All rights reserved.

Find a Desired Item The user selects the item to add it to the shopping cart. Searching found the desired item. © 2014 Ariba, Inc. All rights reserved.

Check Out Notice that there are no steps for logging in, entering a shipping address, or entering payment. Those steps are all handled by the procurement system. For PunchOut, the “Purchase” or “Buy” button has been renamed “Check Out” or “Back to Requisition.” The user can change the quantity or add additional items, if desired. This is the Check Out page on the site showing the shopping cart. © 2014 Ariba, Inc. All rights reserved. © 2014 Ariba, Inc. All rights reserved.

Back to Requisition $39.00 USD After the requisition is approved, the procurement system converts it to a purchase order and sends it to the Ariba Network, which routes it to the supplier. After the user checks out, the PunchOut site disappears and the shopping cart items appear in the requisition within the procurement system. The user then submits the requisition for approval. © 2014 Ariba, Inc. All rights reserved. © 2014 Ariba, Inc. All rights reserved.

Retrofitting an E-Commerce Site PunchOut sites have most of the functions of standard e-commerce sites. Retrofit your site to add PunchOut features. The goal is to have one site that behaves as both: an e-commerce site for Web users a PunchOut site for procurement application users © 2014 Ariba, Inc. All rights reserved.

Section 4 Where to Go for Help © 2014 Ariba, Inc. All rights reserved.

PunchOut Help PunchOut Documentation on Help@Ariba: cXML User’s Guide Comprehensive manual on the cXML language cXML Solutions Guide Describes how Ariba Network uses cXML © 2014 Ariba, Inc. All rights reserved.

Ariba Ready Programs Help from Ariba Consulting and Inside Account Management CIF PunchOut cXML Integration Ariba Ready has expertise to help you develop a CIF catalog to get you started quickly. Later, get help developing a PunchOut catalog, which might be a better solution for your offerings. Finally, get help integrating your business systems with your customers. © 2014 Ariba, Inc. All rights reserved.

Ariba Ready Programs, cont’d Ariba Express Content Preloads your catalog into Ariba Procure-to-Pay for new buying organizations Enables customers to window shop from you Freedom to negotiate pricing with customers Ariba Express Content drives up exposure, because your catalog is in every new and existing Ariba Procure-to-Pay deployment. © 2014 Ariba, Inc. All rights reserved.

3rd-Party Solution Providers These solution providers can help you with: • PO integration • Invoice integration • Ariba PunchOut support • Website development © 2014 Ariba, Inc. All rights reserved.

Send an email message to: programs_info@ariba.com More Questions? Send an email message to: programs_info@ariba.com © 2014 Ariba, Inc. All rights reserved.

More Questions? Attend live webinars: Integrating with Customers through cXML PunchOut for E-Commerce Managers Creating Electronic Catalogs (CIF) Register for these webinars at www.ariba.com/resources/live-demo © 2014 Ariba, Inc. All rights reserved.

Finally… Embrace PunchOut By integrating with your customers, you create stronger relationships and tie them to your company and your offerings. © 2014 Ariba, Inc. All rights reserved.