For the next installment on my series on: SAP Hybrid Cloud Proves Successful for Latin America E-Invoicing Compliance, I wanted to cover why you can’t rely solely on a pure managed service provider or 100% cloud provider for e-invoicing in Latin America. It is really important to understand there are 3 functional requirements to Latin America compliance. And 100% cloud or EDI Value Added Networks only cover the last component – Government connectivity.
You need to be aware of the ERP upgrade requirements, the process orchestration (i.e. signing, PDF creation, turn around attributes, extended data elements) even before you worry about the connectivity to the government. After all, the ERP and process orchestration requirements create 80% of the cost components when implementing, monitoring, or maintaining compliance in Latin America.
Traditional Managed Service, EDI VANs, e-invoicing networks, and signing providers fail to provide an end to end service: Some companies turned to 100% pure cloud providers, but they found these EDI type VANs were not the best answer in the long run for two reasons:
So the Hybrid Architecture is the strategy winning the day, and in our next article we will explore why in more detail.
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