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What is a Webhook?

Webhooks are automated notifications sent from one application to another when specific events occur.


The term "webhook" frequently surfaces, especially when business transformation conversations start discussing real-time data transfer and process automation. What exactly is a webhook, and how can a webhook benefit procurement and business operations? 

Understanding Webhooks

A webhook is a method of augmenting or altering the behavior of a web application with custom software callbacks. These webhook callbacks are triggered by specific planned events, facilitating real-time data sharing between different systems. Unlike an API, which requires regular periodic polling of software systems to fetch data, webhooks push data automatically when a specific planned event occurs, making webhooks highly efficient for real-time updates.


How Webhooks Work

Webhooks operate on an event-driven model:

  1. Event Occurrence: A planned event occurs in the source application.

  2. Trigger: The planned event triggers the webhook.

  3. Data Transfer: The webhook sends an HTTP POST request to a predefined URL in the receiving system, containing the relevant data.

  4. Processing: The webhook receiving system processes data and performs necessary actions, such as updating records or triggering additional workflows.

Benefits of Webhooks

  1. Real-Time Data Transfer: Webhooks provide immediate updates, ensuring that the receiving system always has the most current information. This is crucial for procurement and supply chain operations where timely data can significantly impact decision-making.

  2. Efficiency: By eliminating the need for constant polling, webhooks reduce network traffic and resource consumption, making them a more efficient solution for event-driven data exchange.

  3. Automation: Webhooks enable automation of routine tasks. 

  4. Integration: Webhooks facilitate seamless integration between disparate systems, allowing for a more cohesive and interoperable IT ecosystem.

Setting Up a Webhook

Setting up a webhook typically involves the following steps:

  1. Define the Event: Identify the event that will trigger the webhook.

  2. Specify the Endpoint: Set the URL endpoint in the receiving system where the webhook will send the data.

  3. Configure the Payload: Determine the data that will be included in the webhook’s payload. This often involves defining a JSON object that contains the relevant information.

  4. Implement Security Measures: Ensure that the webhook is secure by using methods like secret tokens or IP whitelisting to verify the source of the webhook requests.

  5. Test the Webhook: Test the webhook to ensure it triggers correctly and that the receiving system processes the data as expected.


Webhooks are powerful tools that enhance real-time communication and automation between systems. For procurement, supply chain and business professionals, leveraging webhooks can lead to more efficient operations, timely data updates, and seamless integration across various platforms. By understanding and implementing webhooks, businesses can stay ahead in the competitive landscape, ensuring that their digital infrastructure supports proactive and informed decision-making.

Webhooks within the Levelpath Platform

Webhooks are automated notifications sent from one application to another when specific events occur. Within the Levelpath platform, users can utilize webhooks to notify external applications of events happening within a workspace. 

How do Webhooks work?

A webhook can be configured to trigger a notification to an external application when a specific event occurs in a workspace. This process involves:

  1. Event Trigger: An event within Levelpath triggers the webhook.

  2. Middleware Connection: The webhook connects to a middleware application.

  3. Endpoint Notification: The middleware forwards the information to the designated endpoint.

  4. Action Completion: The endpoint application processes the information, completing the necessary steps in the workflow.

This allows for efficient communication and automation between Levelpath and other applications.

To configure webhooks on Levelpath, you'll need to access the webhook settings within your account, typically found in the integration or API section. You will specify the endpoint URL where you want to receive the webhook notifications, select the events you wish to trigger webhooks for and set up any necessary authentication methods to ensure secure data transmission.

Once configured, Levelpath will send real-time HTTP POST requests to your specified endpoint whenever the selected events occur, allowing your systems to automatically react to changes in your procurement and supply chain data. Note: The Organization Admin will likely need to utilize their company’s technical support to complete the webhook configuration.

Webhooks for Beginners

Both APIs and Webhooks are essential tools for modern software integration, each serving different purposes. Understanding their differences helps in choosing the right tool for specific needs, ensuring efficient and effective communication between systems.

For further information on Webhooks, try exploring the What is a Webhook video below on YouTube.

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