Brazil Nota Fiscal – Production Support Is Where Costs of In-house Solutions can Sky Rocket

Scott Lewin
February 28, 2013

Over the last year, many companies have been re-evaluating their strategy for managing Brazil Nota Fiscal and Latin America eInvoicing in general. Many of these examinations are due to Production Support issues and Costs of in-house solutions. Many companies don’t fully identify the issues with purely in-house software, so in this blog we are covering some of the most common issues and negative business affects. If you are running an in-house solution make sure you understand the true cost of operating that solution.

Common support issues:

  • Inability to print the DANFe because there is no monitoring of the printers at offsite locations. This causes delays in shipping and potential lost revenue from customers
  • Too many monitors cause issues in resolving the problems as they arise. This is a huge issue for solutions that have too many software components. For example, many companies are running a process that has:
  1. NFe Monitor in their ERP system
  2. Monitor for EAI -EAI to connect the ERP to the NFe box which is a separate install
  3. Application Server for the production of a digital signature and signing component
  4. A secondary monitor for EAI to the SEFAZ

How can you expect your financial or warehouse end user to find and resolve an error in this process?

With four distinct monitors for an end-to-end process, how is your organization dealing with small errors, let alone process errors such as the coordination of cancelling a Nota Fiscal. These issues cause shipping delays, fire drills at the ERP Center of Excellence, and in some cases shutting down a plant and customer deliveries. Talk with companies that have moved away from in-house solutions and you will hear about nightmares of plant shut downs due to failures of their in-house Nota Fiscal solution. What is the cost of this to your operations?

  • Changes from the government also cause chaos for in-house solutions. A common complaint we hear all the time is: what is my 22% maintenance fee really covering when the updates are delivered months or years after a change is required and l have to have internal resources or an SI install these patches in my customized ERP environment. This problem is compounded when you are running multiple in-house solutions in many countries.

Common Problems

  • Multiple Platforms
  • Multiple Monitors
  • Support
    • Who do you call when there is an issue?
    • Is Spanish, Portuguese and English support available?
    • Is support responsive to an SLA?
  • Change Management
    • Who is responsible for keeping system compliant?
    • Who manages the ERP configuration?
    • Who coordinates all the pieces and testing?

In summary, make sure you understand your Nota Fiscal solution beyond just functional check boxes. The real issues and costs are in the implementation, monitoring, and maintenance of the solution. Look for solution providers that solve all three issues including production support and ongoing change management. Many Fortune 500 companies are turning to hybrid offerings that place the burden of production support and change management on the provider. Theelimination of multiple NFe hardware boxes, middleware instances, constant ERP configurations, day to day monitoring and fixes, and reallocation of staff to growing the business can have a huge ROI. With the new 2013 changes and forced licensing for new inbound processes, let alone the implementation costs — it is time to re-evaluate your Latin America compliance strategy, especially Brazil Nota Fiscal.

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Author

Scott Lewin

Gain timely insight and important up to the minute information about the current legislative changes in Latin America, including Brazil Nota Fiscal, Mexico CFDI, Argentina AFIP and Chile DTE. Learn how these changes affect your operations, your finances and also your Information Technology teams.
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