The Use of Subcontractors is Becoming More Common and Complex Than Ever for Field Services Companies.
An article on Supply & Demand Chain Executive website highlights how an increasingly competitive business environment and improvements in web-based commerce engines have sparked new employment strategies.
Many technology field services companies now rely on in-house staff with layers of independent subcontractors as a “fill-in” contingent workforce. This subcontractor management model is becoming increasingly tough to manage.
That’s where the web-based “portal approach” comes into play by providing “access and service management of this type of technical labor by the hour,” the Supply & Demand Chain Executive article explains. “The new portal approaches … are growing rapidly in the number of users and volume of usage for technology field service.”
If field services firms are going to bring subcontractor management into their business, then their system needs to incorporate that workflow. Companies must be able to set up pricing agreements to avoid costly purchase order generation every time you need to dispatch a call to the subcontractors.
Giving your subcontractor access to the portal to complete timesheets, parts usage and expenses is critical. The system should then automatically price up the payment based on pricing agreements already in place for each supplier. This way you can have your partners pre-approve exactly what they will be paid even before they send you their invoice.
Source: Supply & Demand Chain Executive, October 2012