FAQ: What is the difference between EDI and Punchout?

By Søren Handlos

Electronic Data Interchange (EDI) and Punchout are two different technologies for exchanging business data electronically.

EDI is a set of standard protocols for exchanging business data electronically. It enables organizations to automate many of their business processes, including order placement, invoicing, and shipping. EDI has been in use for many years and is widely adopted in many industries, especially in the B2B space.

Punchout, on the other hand, is a technology that enables purchasers to browse and purchase products – from a supplier’s catalog/commerce solution – connecting purchasers eprocurement/ERP platform with suppliers ecommerce platform. Punchout allows purchasers to “punch out” from their procurement platform to the supplier’s website to complete the purchase and get the order back into the procurement system, thus providing a seamless modern ordering experience.

In summary, EDI is a technology for exchanging standardized business data where no purchaser interaction is needed, while Punchout is a technology for modern B2B commerce purchasing. While EDI can be used to support Punchout, the two technologies serve highly different purposes.

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