Reselling vs. Building E-Invoicing Solutions: A Strategic Decision for ERP Integration Companies

Electronic invoicing is evolving in many countries, each with specific regulations and requirements businesses must adhere to. ERP vendors may face challenges when trying to keep up with these emerging changes.

Companies seek the most effective ERPs to run all business processes, including customer relationship management, e-invoicing, supply chain management, and inventory management.

ERP vendors must choose between building new e-invoicing solutions that accommodate all business needs and partnering with a third-party e-invoicing software provider.

Third-party software providers help vendors resell their systems by integrating their electronic invoicing solutions and making them more acceptable to business owners.

ERP integrating companies can benefit significantly from third-party e-invoicing software providers. They help them avoid significant costs associated with building new e-invoicing systems from scratch.

In this post, we’ll discuss ERP integration companies' big challenge: whether to resell their e-invoicing solution or build a new one to accommodate business owners' needs. We’ll examine each option in detail, listing their advantages and disadvantages.

Overview of e-invoicing solutions

An e-invoicing solution is invoice management software that handles all invoicing aspects, including generating, sending, and receiving e-invoices. In some cases, e-invoicing solutions also allow businesses to make payments.

E-invoicing solutions allow easy access to invoice data since digital information can be accessed from anywhere. They must adhere to a specific “structured” format between the buyer and supplier, allowing the sending and receiving systems to understand each other.

E-invoicing solutions rely on ERP-related data to verify critical invoice data, including purchase orders, receipts, and contracts.

E-invoicing integration with ERP systems is critical to helping solutions generate invoices with correct information that aligns with business policies and regulations. They also eliminate tedious tasks such as manual data entry and minimize the risk of errors.

Once ready, the electronic invoicing solution transmits the invoice to the buyer, whose system validates the information before making payment.

Electronic invoicing processes differ among countries. In some, the invoice has to be transmitted to the tax authorities for verification before being issued to the user. In others, the invoices can be sent directly or through an access point provider to help ensure compliance.

The case for reselling e-invoicing solutions

Reselling e-invoicing solutions involves seeking assistance from a third-party software provider to ensure the ERP system meets users' needs. ERP systems without electronic invoicing capabilities may lose value as electronic invoicing grows and becomes mandatory in many countries.

As a reliable e-invoicing software provider, Storecove is already used in more than 30 countries. With over 50,000 companies on our platform, Storecove helps them comply with tax regulations.

Third-party software providers help ERP vendors meet business requirements by enabling electronic invoicing on a global scale. They play a critical role in helping ensure regulatory compliance depending on the requirements set by your country’s government.

One of the most common ways of integrating electronic invoicing solutions is through Application Programming Interfaces (APIs). APIs effectively connect applications based on vendors' resources and functions.

Advantages of reselling e-invoicing solutions

ERP tools help businesses manage and organize their operations, including people, warehouse management, and cash flow. Integrating e-invoicing solutions into these systems further enhances performance by allowing easy invoice generation, transmission, and tracking.

Here are how ERP vendors can benefit from using third-party e-invoicing software providers for integration:

Expertise in e-invoicing implementation

ERP e-invoicing solution software vendors have a team of professionals with expertise in the integration process. They know how to formulate strategies and design effective solutions for every ERP system they encounter.

The steps involved in integrating e-invoicing solutions into ERPs can be overwhelming for vendors to handle independently. Having a team of professionals on standby helps ensure the integration process is successful.

Their expertise allows them to handle issues promptly, making ERP systems convenient for business owners. They can adapt or create new processes that result in greater proficiency with the e-invoicing solution features and customizations.

Working with an ERP system reseller results in customer satisfaction by automating the invoicing process. Eliminating manual processes leads to greater return on investments (ROIs) and higher key performance indicators (KPIs).

Reliable, professional e-invoicing solution providers like Storecove guarantee well-deserved solutions for ERP e-invoicing integration and deployment.

Continuous training and certifications

E-invoicing solution providers frequently undergo training to be updated with the ever-changing regulations and requirements in multiple countries.

They have to provide solutions that meet the specific needs of business owners in different countries with unique e-invoicing requirements and regulations.

For example, business owners in Malaysia require a solution that delivers invoices to the Inland Revenue Board of Malaysia (IRBM) for validation. The tax body then issues a Unique Identifier Number to be embedded on the invoice by the supplier before issuance.

In the US, sellers must have an e-invoicing solution that generates electronic invoices and issues them to an access point (AP) provider. Their AP provider sends the invoice to the buyer’s AP provider, who ensures it is accessible by their client's ERP.

The requirements and e-invoicing processes differ worldwide, making it essential to understand each. The third-party e-invoicing software provider also has adequate knowledge about ERPs to ensure successful integration.

Cost saving

The integration phase and maintenance of the e-invoicing solution can be quite costly. Investing in an ERP system reseller helps reduce costs since the entire process is long-term and can lead to accrued costs over time.

Partnering with e-invoicing solution providers also helps ERP vendors save time and focus on what the company does best: providing a quality ERP system.

You don’t have to hire an extra IT team or change your management for e-invoicing integration. Such changes can lead to drops in worker productivity and business losses.

Specialized project management

An e-invoicing integration process requires vendors to identify their needs, estimate necessary resources, and consider and predict timelines.

The team responsible must create a management plan and secure funding, which can be overwhelming and lead to changes in management.

Third-party e-invoicing software providers are familiar with all aspects of such a project, from gathering requirements to providing user training and support.

They create detailed integration processes and a checklist of the project deliverables. The plan defines when the ERP vendor’s executive team should join the discussion and when your staff will get acquainted with the new solution.

ERP e-invoicing solution providers improve the productivity and efficiency of your team and help prevent integration failures.

Disadvantages of Reselling E-Invoicing Solutions

While reselling e-invoicing solutions sounds appealing, there are a few drawbacks. However, most of these depend on your chosen third-party software service provider. If they are reliable, you probably don’t have to worry about anything.

Let us discuss the few challenges ERP vendors may experience when working with resellers:

Potential for dependency

Relying heavily on a third-party company for technology solutions will often lead to a long-term relationship where you depend on their expertise and support.

Such dependency can pose a challenge if the reseller experiences disruptions or significant changes in its business model. Therefore, when choosing a third party, research them to understand their reputation and reliability.

Failure to engage end users

Some resellers only participate in the integration process but do not offer customer service for their e-invoicing solutions. This makes it challenging for business owners to use their ERP systems efficiently.

Such unreliable e-invoicing software providers lead to vendor losses. Customers often opt for other ERP providers if they don’t receive adequate support when using the new e-invoicing solution.

Reputation

Most businesses hesitate to partner with a reseller, assuming they only intend to reduce their profit margin. ERP vendors, who may not fully understand their intended purpose, are mainly responsible for this misconception.

Reliable resellers help businesses overcome challenges, such as e-invoicing integration, to better meet ERP system users' demands.

See more: 12 Reasons to Use an E-Invoicing Solution as a Government Supplier.

The Case for building e-invoicing solutions

Building an electronic invoicing solution simply means creating a new tool from scratch. Traditionally, this meant hard coding, but nowadays, vendors can use other methods, such as reusable models, existing frameworks, and low/no-code tools.

This option is quite beneficial for businesses, but it requires a significant investment. If an ERP vendor has the resources, they can create a custom solution for their current users.

But in the real world, this is not always the case. IT teams often struggle to find the development resources for new and existing projects.

A global shortage of qualified developers and the current state of brutal economic winds make custom e-invoicing software builds unviable.

Developing new software also brings many associated tasks, including lifecycle management, hosting, maintenance, patch management, support, testing, access, and security.

Advantages of building e-invoicing solutions

ERP vendors who choose to build their own e-invoicing solutions can enjoy the following benefits:

Long-term cost savings

While the initial cost of building an e-invoicing solution is significant, it can lead to longer-term cost savings. ERP vendors will avoid recurring licensing fees and potential fees associated with third-party solution providers.

The in-house solution becomes more cost-effective as the vendor gains more expertise and optimizes development and maintenance processes.

Additionally, owning the intellectual property of the e-invoicing solution can provide monetization opportunities, such as licensing the solution to other businesses or integrating it into other products and services.

This potential for long-term financial benefits makes the upfront investment more justifiable.

Customization and flexibility

When an ERP system integration company chooses to build its own electronic invoicing solution, it has more control over how it appears and can be tailored to the specific needs and requirements of its current ERP and users.

The freedom to customize the solution allows them to ensure it aligns with the target market's unique business processes, workflows, and regulatory demands.

Vendors can integrate unique features and functionalities that differentiate their enterprise resource planning system from competitors, providing a significant competitive edge.

Moreover, they can quickly adapt the solution to new business needs or regulatory changes without waiting for third-party updates.

This level of flexibility can be particularly advantageous in industries with rapidly changing requirements or complex invoicing needs.

Control over development and updates

Despite the lengthy electronic invoicing solution-building process, enterprise resource planning vendors maintain complete control over the development process, including timelines, feature prioritization, and updates.

This autonomy allows them to respond promptly to user feedback and market demands, ensuring the solution remains relevant and up-to-date.

Vendors can implement changes and improvements at their discretion without being dependent on the schedules or priorities of third-party providers. This control minimizes the risk of service delays or disruptions, providing a more stable and reliable solution for their customers.

Additionally, it allows for better planning and forecasting of development efforts, aligning with the company’s strategic goals.

Data security and compliance

Developing an in-house e-invoicing solution allows ERP software vendors to implement robust security measures tailored to their specific requirements.

They can ensure that sensitive invoice data is securely stored and transmitted. This reduces the risk of data breaches and ensures compliance with stringent data protection regulations.

Vendors can also directly manage compliance with regional invoicing regulations and standards, avoiding potential compliance issues that might arise with third-party solutions.

This direct control over security and compliance helps build trust with customers who are increasingly concerned about data privacy and regulatory adherence. It also allows vendors to adapt quickly to new security threats or regulatory changes.

Disadvantages of building e-invoicing solutions

Building an e-invoicing solution is a lengthy process that can be costly. Let us discuss some of the advantages associated with such a project:

High initial development costs

Building an e-invoicing solution from scratch requires a significant upfront investment in money, time, and resources. ERP vendors must allocate substantial budgets for hiring skilled developers, designers, project managers, and other professionals.

These costs can strain financial resources, especially for smaller vendors or those with limited budgets. The initial development phase can also be lengthy, delaying the time-to-market for the solution and potentially impacting revenue and market competitiveness.

The financial risk of such a significant investment can be daunting, particularly if the project encounters unforeseen challenges or delays.

Ongoing maintenance and support

Once the e-invoicing solution is developed, ERP vendors must allocate resources for ongoing maintenance, support, and updates. This includes fixing bugs, addressing security vulnerabilities, and ensuring compatibility with evolving technologies and regulations.

The need for continuous maintenance can divert resources from other critical projects and impact overall productivity. Providing user support and training for the new system can also be resource-intensive, requiring dedicated support teams and infrastructure.

The vendor is solely responsible for maintaining high levels of uptime and performance, which can be challenging without a robust support framework in place.

Complexity and risk

Developing an e-invoicing solution is a complex and resource-intensive process involving various stages, including requirements gathering, design, development, testing, and deployment.

The complexity increases the risk of project delays, budget overruns, and technical issues that can arise at any stage. These risks can lead to project failure and wasted resources if not managed properly.

The need for continuous updates and improvements to keep up with evolving technologies and regulatory changes adds to the complexity and ongoing workload.

The potential for scope creep, where the project expands beyond its original objectives, can also lead to increased costs and extended timelines.

Resource constraints and talent acquisition

Building an e-invoicing solution requires a team of skilled professionals, including software developers, DevOps engineers, data specialists, and QA testers. Finding and retaining such talent can be challenging, especially in a competitive job market.

The cost of hiring skilled professionals for a project of this magnitude can be high, and there is also the risk of turnover, which can disrupt the project.

Resource constraints may limit the vendor's ability to take on other projects, affecting overall business growth and innovation. Additionally, the team's need to provide ongoing training and development to keep up with new technologies and best practices adds to the overall resource burden.

Key factors to consider when choosing between reselling and building e-invoicing solutions

When choosing between reselling and building e-invoicing solutions, enterprise resource planning vendors must carefully weigh the advantages and disadvantages. Key factors to consider include:

Costs vs benefits

Integration companies' main challenge is determining the most cost-effective solution for achieving the required capability. In most cases, the question is whether e-invoicing integration alone can solve the problem or whether a new solution needs to be built from scratch.

Partnering with resellers who integrate their existing tools into the system is often faster, easier, and cheaper. However, there may be a few exceptions to this option.

Although building an e-invoicing solution from scratch may cost more upfront, it may also result in longer-term savings. However, when a company is not financially capable, it may choose the cheaper but more effective option of partnering with a reseller.

Developing a new e-invoicing solution is time-consuming, and ERP system users may not be willing to wait. As more countries mandate electronic invoicing, businesses must find ERP software vendors whose systems meet all their requirements.

In such cases, e-invoicing integration companies will opt for a faster option to avoid losing users, which could result in financial losses.

Human resources

Software development projects require experienced and dedicated teams to make them effective. The exact makeup of these teams depends on the scale and the scope of the e-invoicing build project.

ERP vendors must consider current employees and determine whether they require new members to build a new e-invoicing solution.

For software development, you will require designers, developers, DevOps professionals, data specialists, QAs, UX designers, project managers, and a host of other roles.

Hiring skilled and specialized professionals for a project such as building an e-invoicing solution, which may last a few months, is costly.

The availability of low/no-code tools is shifting the boundaries a bit, but third-party integration is a bit less of a clear-cut case.

Third-party electronic invoicing software providers comprise a team of system integration engineers to ensure successful module compatibility.

Financing

Does your company have the funds to hire and maintain a team of professionals to build an e-invoicing solution? This is the costly option, from planning to the testing phase.

ERP vendors must consider how and where they can incur costs in electronic invoicing solution development compared to software development projects. The big challenge in development is always labor costs.

Software development projects are lengthy and the engineers are costly - there’s no getting around this. The cost is primarily upfront, and most companies are never prepared for such unplanned and unbudgeted projects.

Both options also involve recurring costs that are picked up along the way, such as payments to resellers and maintenance costs for self-developed systems.

Support

The last key factor to consider is who will be responsible for supporting users on an ongoing basis. Electronic invoicing solutions may be challenging for some users, especially in the early stages, leading to a demand for customer support.

It is more manageable for resellers' integration solutions as the third-party provider takes on most of the ERP vendor’s responsibility. They are better equipped to provide support since they create and connect the functionalities.

However, allowing a reseller to support the user may pose a few challenges. For example, some unreliable third-party electronic invoicing solution providers may not have an effective customer service system.

Reselling vs building e-invoicing solutions: Which is better for ERP integration companies?

Building an e-invoicing solution is a lengthy and costly process. This is unfavorable, especially given the rapid growth of electronic invoicing worldwide. ERP software vendors risk losing clients who want instant access to an e-invoicing solution.

Reselling e-invoicing solutions from a third-party software provider is a more viable option since it is quicker and does not require a substantial initial investment.

Here's a comparison table comparing the two options:

Factors	Reselling E-Invoicing Solutions	Building E-Invoicing Solutions
Initial Cost	Lower	Higher
Time to Market	Faster	Slower
Expertise Requirement	Provided by third-party	Requires in-house expertise
Dependency	High dependency on third-party	Full control and independence
Maintenance and Updates	Handled by third-party	Handled in-house
Security and Compliance	Managed by third-party	Managed in-house
Resource Allocation	Less internal resource demand	Significant internal resource demand
Risk of Project Delays	Lower	Higher
Support and Training	Provided by third-party	Requires in-house support teams
Integration Complexity	Simplified by third-party APIs	Higher complexity in-house
Compliance with Regional Regulations	Ensured by third-party expertise	Requires ongoing updates and knowledge

This table outlines the key differences between reselling and building e-invoicing solutions, helping ERP integration companies decide strategically based on their resources, needs, and long-term goals.

Takeaway: Reselling e-invoicing solutions is a strategic option for ERP integration companies

ERP integration companies face many challenges as they try to keep up with changing business demands. New requirements keep popping up as technology becomes more critical in most business operations.

Electronic invoicing is one of the ever-growing developments as governments worldwide introduce regulations for transmitting invoices in digital format. To keep up with business requirements, ERP vendors are torn between reselling or building new e-invoicing solutions.

Reselling is often the most favorable idea since it is quick and efficient. At Storecove, we can help you meet your users' needs by integrating our solutions, which include PEPPOL, SDI, BPC, and other networks, into your system. Contact us today to get started.

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