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Punchouts: Giving The One-Two Punch To Big Box Stores

Punchout e-procurement workflow linking buyer system to reseller catalog

This post was updated on February 12, 2026, with more updated information and data.

A question we hear increasingly from independent resellers of business products is, “How can we keep up with the Amazons and Staples of the world?” One clear answer is Punchouts. However, why stop with keeping pace? With Punchouts, you can beat them at the ecommerce game.

What are Punchouts?

In simple terms, a Punchout is integrating a customer’s existing e-procurement software with ECI’s Red Falcon or DDMSPLUS ecommerce software. This integration allows users to shop, fill carts, and send orders for approval and processing without leaving their procurement system.  Most large companies use one of the many standard software systems that Red Falcon or DDMSPLUS integrate with easily. However, Punchouts can also be customized to fit proprietary e-procurement software.

How do Punchouts benefit SMBs?

  • Increased efficiency: Customers can shop directly from their desktop, reducing time spent on order approvals and logistics.
  • Streamlined processes: Orders are sent directly to your warehouse, ready to be fulfilled, minimizing manual entry errors.
  • Customer loyalty: By offering a convenient shopping experience, you secure repeat business and foster customer loyalty.

Why are Punchouts crucial for business growth?

Punchouts open doors to bigger opportunities, especially with large organizations and government entities that require such integrations for RFPs. They ensure your business can bid for and win lucrative contracts that were previously out of reach.

Key statistics

  • The global procurement software market is projected to reach over USD 21 billion by 2033, growing at a CAGR of roughly 9.7% from 2025 onward—driven largely by e‑procurement solutions replacing manual, paper-based purchasing. - Grand View Research 2024
  • In a 2024 State of Procurement survey, 77% of organizations reported using some form of eProcurement tools. - PlanetBids 2024
  • In 2024, research found that 68% of B2B firms now offer an ecommerce storefront or portal, and those that adopted ecommerce reported an average 25% increase in revenue - DynamicWeb 2025

There are computer screens full of similar statistics. The most significant pressure on profit margins for physical business and office supply stores comes from online entities that offer greater consumer convenience. Savvy resellers have been beefing up online presences to keep up with ecommerce competitors as consumer purchasing habits shift.

The great news is, for a minimal investment, a Punchout can bring many happy and lucrative returns.

Punchouts in action: Success stories

Companies like Union Office and FSIoffice have leveraged Punchouts to secure large accounts and drive significant revenue growth. These integrations not only facilitated contract wins but also reinforced their positions as preferred vendors in their sectors.

“We implemented our first Punchout 20 years ago, in 2002. It was with the state of North Carolina, the largest account we had. It was driven by the customer’s request. The state wanted to streamline the process to integrate it with its ERP system. …For us, having Punchouts has meant many millions of dollars. Our state contracts are year-round and have been multimillion accounts for us over the last decade.”  —Beth Freeman, executive vice president at FSIoffice

Conclusion

Incorporating Punchouts into your ecommerce strategy is a strategic move to enhance customer satisfaction and secure a competitive edge. It's time to explore how Punchouts can transform your business operations.

Recap
Punchouts are a powerful tool for SMBs looking to compete with big-box retailers by streamlining procurement and enhancing customer experiences. They allow direct integration between e-procurement systems and ecommerce platforms, improving efficiency, reducing manual errors, and fostering customer loyalty. By adopting Punchouts, businesses can secure larger contracts, expand their market reach, and stay competitive in an increasingly automated procurement landscape. With proven success stories and growing demand for such solutions, Punchouts present a strategic opportunity for SMBs to grow and thrive.

FAQs

How do Punchouts improve procurement efficiency?

Punchouts streamline the purchasing process by allowing direct access to ecommerce platforms through existing procurement systems, reducing time and effort for both vendors and buyers.

Are Punchouts suitable for small businesses?

Absolutely. Punchouts provide small businesses with the tools to compete against larger retailers by improving efficiency and expanding market reach.

Do Punchouts support multiple payment options?

Yes, customers can choose to pay via credit card or access invoices for payment at a later time.

How do Punchouts handle order approvals?

Orders are automatically routed to the appropriate department for any required approvals before being processed.

How do Punchouts reduce operational costs?

By minimizing manual order entry and streamlining the procurement process, Punchouts help reduce errors and associated costs.