Improve Subcontractor Cost Performance

Does your service company use subcontractors to provide customers with comprehensive solutions? Or are subcontractors called upon during peak periods when there is just too much work for existing staff?

In either case, controlling the costs associated with integrating subcontractors into your service business can be difficult – and have a significant effect on your company’s bottom line. Invoice delays, adjustments in subcontractor service and material costs, undocumented travel expenses and limited integration with back office billing systems are just a few of the ways that subcontractor costs can have a negative impact on profitability.

• With so much at stake, it’s important for service organizations to find new ways to:
• Reduce or even eliminate subcontractor invoice delays
• Standardize subcontractor service and material costs
• Track subcontractor time – both on the road and on the job
• Automate integration with existing back office systems

At FieldAware, we believe one of the best ways to improve subcontractor cost performance is to take a centralized approach. One that combines made for mobile apps for smartphones and tablets with a powerful, end-to-end, web-based field service management system. How does it work?

1. Subcontractors download FieldAware’s app (iOS smartphone or tablet, Android smartphone or tablet) from the appropriate app store (iTunes, Google Play Store)
2. The company administrator adds subcontractor users. (FieldAware has five user types – Administrator, Contractor, Employee, Manager and Dispatcher)
3. Subcontractor access and editing rights are assigned by the Administrator.
   1. For example: Subcontractors may be barred from adding new parts, altering service costs, viewing internal costs and more. Or they may be allowed to create quotes and add tasks to the quote, but not add items (parts).
4. The company Administrator defines default actions in FieldAware (i.e. contractor must capture customer electronic signature upon completion of a task or to accept a quote).

After the system is ready, the subcontractor can accept a new job or task. The system will automatically track the subcontractor’s travel time, if he/she pauses the job (for lunch, a break or a parts run) and time required to complete the job. It will also automatically apply labor and parts costs and add them to the customer invoice. And, if electronic signature capture is enabled to ensure customer acceptance, the signature will be included on all quotes and customer invoices.

• Invoice delays are eliminated
• Subcontractor service and material costs are standardized and simplified (they’re in the system!)
• Subcontractor time tracking is automatic
• Costs, quotes, invoices and more are automatically updated to back office systems.

Using best of breed scheduling land dispatch system, dispatchers and managers can view where subcontractors are and what they are doing – in real time. Controlling subcontractor costs can be a challenge for service organizations. However, companies can keep subcontractor costs in line and improve the bottom line with the proper tools.