Using third-party contractors to supplement your in-house workforce is common in the heavy asset industry -- from chemical to pulp and paper to mining facilities. Contractors can provide specialized skills, expertise, and technical services.
Using third-party contractors offer several advantages, including cost flexibility, scalability, and increased efficiency. However, it is essential for all companies to establish strong contractual agreements, ensure compliance with regulatory requirements, and maintain effective communication and oversight to manage the risks associated with third-party engagements.
For example, EY-Parthenon, Ernst & Young's global strategy consulting arm, found in a survey that chemical companies are lagging when it comes to their payment practices. They noted many companies have decentralized procurement functions, which results in uneven enforcement of policies.
When projects and sites fail to standardize their payment processes, they are prone to invoicing errors, which can lead to overbilling, as described in the infographic below.
Cloud-Based Software to the Rescue
Companies that leverage a contractor data management solution can prevent discrepancies and error-proof their invoice accuracy. With a cloud-based software solution, both third-party contractors and the company agree to use badge-in/badge-out events as the single method for the measurement of time on-site.
Contractors and owners no longer must estimate time and manually prepare timesheets. Companies are not required to enter time data into a separate CTS. Instead, there is a single view of contractor hours.
This single view not only eliminates time-intensive, error-prone manual timekeeping but also effectively eliminates invoice time discrepancies. Owners and contractors have the same view of contract labor and equipment time daily and sometimes even on a shift-by-shift basis.
Take the Next Step with Track
The software market can be an overwhelming space, but the Track® Platform is uniquely positioned to benefit companies in the heavy asset industry. Using real-time data, automated tracking, and integrated contract compliance, TRACK gives unprecedented visibility into your workforce, productivity, and spending through a comprehensive set of capabilities.
Track provides enhanced visibility and accuracy by aligning gate log data from the Access Control System with contractual terms and conditions before the accountable party reviews and approves the electronic timesheet. Track also allows the history of who authorized the Timesheet to be captured and stored along with a timestamp.
By validating the work, the owner and contractor can have confidence in the accuracy and transparency labor, equipment, and material charges. Track also integrates with SAP and other ERP systems, so contractor payments and real-time cost reporting are included.
