Compliance as a Service: what it is and why it has become a trend

Compliance as a Service

The business ecosystem is becoming more and more complex. Companies have shifted to operating in a global environment with a broad and fragmented legislative framework, due to extensive control in many cases. In this scenario, compliance has become of prime importance in organizations.

What do we mean when we talk about compliance?

Compliance or corporate compliance is the set of procedures and good practices that are applied to ensure that a company, and its members, comply with the regulatory framework. This includes monitoring the legislation affecting the business in each of the countries in which it operates, but also other aspects more related to company ethics and morals. For example, good governance, data confidentiality or financial transparency.

Compliance is nothing new. It came into being in the Anglo-Saxon world and linked to the financial sphere due to the enormous amount of regulations that these companies had to obey. However, nowadays it has spread to all production sectors due to globalization.

Why Compliance as a Service (CaaS)?

Regulatory compliance is currently closely related with technology. Businesses around the world are fully immersed in the digital transformation process, an evolution that entails the use of technological tools in the different operating levels of companies.

Compliance as a Service (CaaS) is a cloud-based option that lets organizations outsource and automate their regulatory compliance (fiscal, commercial, etc.). The aim is to lighten the workload for companies, minimize economic costs and, most of all, somehow simplify the demands for compliance.

How does Compliance as a Service work?

Companies opting for this modality delegate to an external provider, such as EDICOM, the mechanisms necessary to comply with the normative requirements that affect them and can be resolved by means of technology. However, instead of hiring a solution, what is engaged is a service, as the necessary software is in the cloud.

For the company, this means that there is no need to carry out installations, assume maintenance costs or take care of future upgrades. All these tasks have an impact on the external provider, who must also ensure the security of the information and deal with any possible incidents.

The case of e-Invoicing

B2G compliance, especially in the fiscal scope, is one of the aspects usually left in the hands of Compliance as a Service. In this way, connectivity and declaration of information to each country’s administrations in the terms dictated by the regulations are automated, a difficult task for companies to undertake internally.

One of the most outstanding examples of this is e-Invoicing. In recent years, this system has become mandatory in several countries worldwide. However, the requirements for correctly issuing this document vary from place to place: different standards, formats, submission deadlines, security mechanisms, etc.

In situations like this, Compliance as a Service allows us to adapt automatically to the requirements in each area, maintaining maximum safety and ensuring correct compliance. To achieve it, in the case of EDICOM, an International e-Invoicing Observatory is responsible for studying the evolution of this technology in more than 60 countries around the world. Based on the outcomes, the Global E-Invoicing compliance solution is updated, so that the user has no need to monitor any possible regulatory changes.

Germany gets ready for e-Invoicing

germany e-invoicing

Germany is starting to define its system for managing e-Invoicing with its public administrations, in line with European Directive 2014/55.

The first deadline will be November 27, 2018, when ministries, central services and constitutional bodies will be required to receive electronic invoices. Next, and by November 27, 2019, it will be the turn of the remaining public, regional and local institutions. But Germany is going even further. Its public administrations will not only have to be ready to receive e-Invoicing over and above the set amounts, but also invoices for any sum. From November 2020, suppliers will be required to send invoices worth more than € 1000 in electronic format only.

EDICOM takes part in GigaCon health sector digitization event in Poland

GigaCon

The health sector is one of the most affected by the requirement in Directive 2014/55 calling on public administrations to be ready to receive e-Invoicing by twenty-eighth of November 2018. The industry is mobilizing to adapt its systems technologically to face this challenge and start digitalizing its processes.

The aim of the GigaCon event is to present the latest solutions in the area of public healthcare organization digitalization. Here, major technology businesses including EDICOM will reveal their solutions for making processes more efficient, cutting costs and integrating the receipt of electronic documents. In addition, EDICOM is holding a conference on e-Invoicing in public procurement on September 25 at 11:30 led by our colleague Justyna Tomaszewska.

Digital transformation of the health sector has multiple benefits, not only for the companies involved, but also for patients. The information travels safely and confidentially through encrypted protocols. To all this, we must add that traceability throughout the supply chain will provide businesses with such relevant information as the current status of their invoices. At the same time, digitization shortens times, lowers costs and reduces possible human error in paper document management. The saving is mainly due to process automation, which will enhance productivity, but also to the elimination of paper. The use of EDI technology also affects the hospital supply chain, which is vitally important for patients. By exchanging data electronically, laboratories, suppliers and hospitals can have instantly updated information on the existing stocks and needs of each hospital. The supply chain is updated immediately, so that each recipient can be supplied on time with whatever they need.

GOVeIn project

The e-Invoicing project, led by EDICOM and financed by the CEF Telecom e-Invoicing programme, has begun its third phase. Now, a third initiative to implement e-Invoicing in public health sector agencies in Europe is being launched. The call for participation in this project is already open. The deadline for European public health sector companies to apply to join the project ends on November 30, 2017.

The health sector in other countries

In other EU countries such as France or the UK, EDICOM already has projects up and running in the health sector, connecting the main players in this industry. In the UK, following the specifications set by the NHS, EDICOM is an accredited PEPPOL Access Point whereby public hospitals can connect with their suppliers. The e-Procurement initiative rolled out by the National Health Service (NHS) has placed the British healthcare system at the technological cutting-edge. With the e-Procurement Strategy, all transactions, purchasing processes, product traceability and communications will become electronic.

EDICOM Integral Global e-Invoicing Solution

EDICOM has integrated solutions for electronic data interchange and e-Invoicing, where companies can immediately link up with their partners anywhere in the world. Our globaleinvoicing.com website you can find information about e-invoicing in other countries worldwide and how, with EDICOM, you can create your own e-invoicing project from a single platform and provider. From our global e-Invoicing platform, we comply with all the billing and VAT requirements laid down by destination countries.

Growth of e-Commerce driving use of EDI in the fashion industry

MOda

In the retail sector, the fashion industry has a great impact on business and exports in countries such as Italy. The country is a major hub of suppliers and distributors with department stores such as Printemps, Harrods and Saks, among other big names. The sector is in continuous movement and covers a wide range of products, which entails complex operational and supply processes in the international scope. A new scenario in ongoing development that calls for agility and efficient solutions.

The future of fashion is digital and defined by the customers’ needs. e-Commerce in the retail sector and the use of mobile devices are growing year after year and require new, more complex processes to which companies must adapt. According to an e-Marketer study, a 23.2% increase in e-commerce worldwide is expected in retail. Electronic sales amount to 10% of total sales for the sector. This study also states that, by 2017, mobile commerce will account for more than 70% of e-commerce sales in China and India.

The sector’s features have made it one of the most advanced in adopting technological processes in its logistics operations and the exchange of business documents. The great heterogeneity of products and globalization has led fashion companies to implement electronic data interchange (EDI) to deal with the large volumes of information they handle and to be able to connect with companies from any part of the world.

In a sector where the commodities are constantly changing and must reach the end client in record times, it is indispensable to find ways of working which are more efficient and immediate. Automation of the exchange of information between businesses in the sector savings on cost and times by accelerating data processing.

How to reach any part of the world?

Through an integral EDI system such as EDICOM’s, a single company can exchange its orders, invoices, or delivery notes electronically and immediately with any supplier, wherever they are located and using any type of standard message. When an invoice or business document is created, the EDI solution processes it automatically, translates it into the standardized language required by the partner and forwards it. This happens the same way with any other business, logistical and administrative transaction.

Some of the biggest brands already rely on EDICOM to implement their EDI solutions. To name but a few, Harrods, Cortefiel, Printemps or El Corte Inglés, four of the main fashion market hubs. This experience enabled EDICOM team to develop a Global EDI solution, which tackles the two needs of businesses in the sector: internationalization and product heterogeneity.

What other documents can be exchanged?

This electronic system allows the exchange of other types of messages such as product and price catalogues, sales reports, despatch advices or returns, etc. EDI automates the sending of this information and also ensures traceability of the documents, at all times providing knowledge on whether the document has been opened, read, etc…

Benefits of EDI in the fashion industry

  • Faster response times
  • Saving on administrative costs
  • Efficiency in working procedures
  • Accuracy in the reports sent, as they come from the ERP
  • Providing greater visibility of the status of processes throughout the supply chain.

The digital transformation of warehouse logistics: EDI and AS2 Connections

almacenes logísticos

Digital society demands more and more immediacy, product availability and shorter delivery times.  For this to happen, supply processes and the movement of goods in business logistics must be optimized with standardized and electronic models that allow them to connect and send commercial information in seconds to any trade partner in the world.

In the logistics chain, warehouses play a fundamental role, facing the challenge of finding the balance between distribution and supply. All the stages of the logistics chain should have perfect communication and be connected for optimum warehouse management and control of merchandise movement.

For instant communication between warehouses and suppliers and distributors, there is an increasing demand to use EDI technology in order to save time, reduce costs, and increase security and traceability. Through standardized and automatic communication, warehouses are able to interchange a multitude of commercial documents, providing a large amount of information to the rest of the entities in the supply chain. For example, sales reports, stock reports, shipping notices, shipping instructions, etc. Using these messages automates the supply chain’s communication flow and decreases the amount of errors.

In addition to establishing these electronic communication flows in the sector, customers demand that AS2 servers make the connections. Through this standard of communication one can exchange all types of documents in a secure way using https protocol with encryption and digital signatures. This ensures the integrity, privacy and authentication of the data. A fundamental requirement of these connections is that both the sending and receiving of messages must occur between AS2 servers. For this reason, most companies decide to outsource the service to a provider like EDICOM that is always ready to send or receive any document. This means that with a specialized solution it is no longer necessary for members in a business relationship be connected at the same time to exchange data. This makes it possible to maximize the advantages of this system.

The final objective is to provide the best service to consumers, but for logistic warehouses this involves obtaining a work plan that meets delivery times and conditions. Both requirements can be achieved simply and automatically using EDI processes that respond to the needs of each entity in the supply chain.

How can you start using EDI in this sector?

EDICOM has developed different technological solutions designed for logistics such as the B2B communications infrastructure  EDICOMNet, the VMI tool or Vendor Management Inventory and the possibility of exchanging communications through AS2 servers with any partner that requires it. Thanks to them, the large companies in this sector at the international level have simplified and improved their day-to-day management.