What is a Double Punchout?
A double punchout places a diversity reseller in the middle of a punchout transaction — so buyers get their familiar supplier experience while meeting diversity spend requirements.
Double Punchout Defined
A double punchout is a two-stage punchout process that routes a buyer through a reseller's platform before connecting them to a national supplier's catalog. The buyer's procurement system connects to the reseller (punchout #1), who in turn connects to the actual supplier like Grainger or Fastenal (punchout #2).
The result: the buyer shops the supplier's full catalog, but the order is placed with and fulfilled through the diversity-certified reseller — creating legitimate, auditable diversity spend credit without disrupting the buyer's existing purchasing workflow.
Why Double Punchouts Matter
- Buyers meet diversity spend goals without changing how they purchase
- Diversity resellers become the official seller of record — not a pass-through
- Full electronic integration: no manual orders, no fax, no email
- Resellers add real value: order support, invoicing, reporting, dispute resolution
- Spend is fully documented and audit-ready for compliance reporting
- Buyers access the same supplier catalog they already use
How a Double Punchout Works
The double punchout flow adds one layer to the standard punchout process:
1. Buyer Punches Out
The buyer's ERP or procurement system opens a punchout session to the diversity reseller's Provision Connect platform.
2. Reseller Punches Out
The reseller's platform immediately punches out to the national supplier (Grainger, Fastenal, etc.), passing the buyer's session through seamlessly.
3. Buyer Shops
The buyer shops the supplier's full catalog with real-time pricing. They have no disruption to their normal purchasing experience.
4. Reseller Bills the Buyer
The order is placed with the reseller, who forwards to the supplier and invoices the buyer — making the reseller the legitimate seller of record.
Double Punchout vs. Pass-Through: An Important Distinction
A diversity pass-through is illegal — it's when a non-diverse company fraudulently claims diversity credit by routing money through a diversity-certified front company that adds no real value. A double punchout is the legitimate opposite of this: the diversity reseller is the actual seller of record, manages the customer relationship, provides value-added services, and is fully visible in the transaction chain.
The distinction matters enormously for compliance. Buyers subject to government or corporate diversity spend requirements need documented, above-board transactions — which is exactly what a properly structured double punchout provides.
How Provision Connect Can Help
Provision Connect specializes in building double punchout solutions for diversity resellers. We handle both layers of the integration — the buyer-to-reseller connection and the reseller-to-supplier connection — including setup with major suppliers like Grainger, Fastenal, Staples, and others. Our platform makes the reseller the true center of the transaction, ensuring diversity spend is legitimate, documented, and audit-proof.
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