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  • Costs and benefits for business case development

    Here you'll find a summary of the costs and benefits associated with Peppol eInvoicing. This is for your business to consider, particularly throughout the business case development process.

    Pilot costs

    Cost considerations

    Benefit considerations

    The cost items listed below should be considered for a small-scale implementation.

    • Part-time project management to oversee and coordinate the various parties who may be participating in the pilot.
    • Part-time or as-required participation of your business process owners responsible for providing the accounts payable or accounts receivable services.
    • Part-time or as-required participation of your ICT professionals.
    • Part-time or as-required participation of access points and or software provider.
    • As-required participation of your business account managers for recruiting and communicating with the pilot participants – e.g. suppliers and/or customers.
     

    The cost of a pilot is relatively modest, depending on the complexity of your environment and the scope of your pilot.

    Contact us for more information about your environment.

    A typical pilot can be conducted in a 2–3 month period.

    Access point(s)

    Cost considerations

    Benefit considerations

    Some software providers may incorporate access points in their subscription fees or user licence fees. In those cases, the access point costs covered below may not be directly relevant.

    Most businesses would typically acquire the services of an access point rather than creating and maintaining their own access point. The costs covered below are limited to acquiring the services of an access point.

    Access point cost models can include one or more of the following:

    • one-off or monthly charge network connection fee
    • data cost by volume e.g. Gigabyte
    • cost per transaction sent or received
    • cost by document type e.g. purchase order
    • cost by services provided.
     

    Connecting to the Peppol Network is a core service provided by all access points and the cost of switching is relatively minimal.

    Other value-add services such as translation to Peppol specification, validation and access point automation services require organisational and business knowledge.

    Peppol is relatively new in Australia and the commercial models are still evolving. You have an opportunity to help shape mutually beneficial commercial models between your providers and your business.

    Business systems upgrade and licence or subscription fees

    Cost considerations

    Benefit considerations

    Some enterprise resource planning (ERP) and business systems providers provide Peppol specification alignment and network connectivity in newer versions of their software, usually cloud, or certain modules.

    If you choose this option, you will need to account for the cost of Peppol integration via an upgrade.

    Alternatively, you may decide to acquire the services of a third party access point provider to translate your business system data to the Peppol specification and access the Peppol network.

    Deep integration of Peppol in the private sector solutions is relatively new and the commercial models are still evolving.

    Availability of third party access point services presents a potentially viable alternative to upgrading your business systems. This has been particularly attractive for those organisations with highly customised or older software systems.

    You have an opportunity to help shape mutually beneficial commercial models between your software providers and your business.

    Integration into your technology infrastructure – an additional channel

    Cost considerations

    Benefit considerations

    Peppol is based on open technology. Integration aspects need to be considered – e.g. with regards to your current technology standards and infrastructure.

    As you migrate from more manual channels, e.g. paper invoices, email and portable document format (PDF) or optical character recognition (OCR) to Peppol, you can retire other channels and simplify your infrastructure.

    Open technology and integration can preserve your existing investments in business systems and technologies such as electronic data interchange (EDI).

    In Europe, EDI skillset shortage is now being seen as a catalyst for migrating from EDI to Peppol.

    Business process changes and change management

    Cost considerations

    Benefit considerations

    In sending eInvoices to your customers via the Peppol network, some business process changes may be needed.

    Receiving eInvoices from your suppliers, presents an opportunity to streamline your business processes, and therefore there would be cost, time and effort associated with supporting such process changes.

    As with any organisational change, attention must be given to the impact of change to internal and external stakeholders and risk management.

    Peppol provides an effective catalyst for business process improvements:

    • savings in invoice processing costs and time from streamlined business processes and from not needing to follow-up invoices
    • reduction of errors from data (re)keying and OCR transcription
    • increased reliability and security of data transmission
    • Potentially reduced payment times and better cashflow.

    For suppliers who enter data into portals:

    • the supplier does not need to get out of their business system and log into a portal.
     
    Supplier and customer onboarding

    Cost considerations

    Benefit considerations

    Your trading partner onboarding strategy costs could be different from other eInvoicing channels, and will probably be more cost effective if you coordinate it with other stakeholder events – e.g. a new software release.

    Awareness and education campaigns to targeted group of partners would be more efficient than one-on-one engagements.

    The ability to connect once and trade with many partners removes the need for one-to-one systems integration and onboarding of suppliers and customers.

    Business and technology roadmap

    Cost considerations

    Benefit considerations

    Incorporate Peppol into your company's technology and business roadmaps. Action and monitor diligently.

    Peppol eInvoicing adoption is suitable for phased migration of invoicing channels, with initial focus on processes with manual or non-value-adding activities.

    A phased approach to Peppol allows coordinated management and execution of the technology and business roadmap.

    Network costs

    Cost considerations

    Benefit considerations

    Invoice processes that require manual data entry by your business partners will carry a network cost due to inefficiencies around manual intervention to fix inaccuracies and discrepancies. There is lost time and cost involved in unnecessary rework.

    Network benefits include:

    • environmentally friendly
    • corporate citizenship in assisting smaller business suppliers perform more efficiently and with less overall cost.

    Direct transmission of invoice data between partners and your systems:

    • improves the efficiency of your network
    • removes manual data entry and manual intervention to correct and reconcile inaccurate invoice data, which in turn remove friction points
    • improves interactions and relationships between suppliers and buyers.

    Ease of implementation can amplify the net effect of adoption in your current trading partner network and expand your traditional network.

    Last modified: 20 Dec 2021QC 67576