REFRAMING CONTRACTOR RELATIONSHIPS TO improve quality and reduce installation and service costs, from contract redesign through order fulfillment, invoicing and quality control across 10+ U.S. divisions
Project Focus
Review and adjust contract elements and contractor management practices across the company to implement a common operating model that includes standards of performance, new quality assurance methods and clarity around service level agreements and coordination of operations. Provide a plan and support for getting the new contracts signed, new pricing in place and implementation of a consistent comprehensive business model across multiple field services operations in various parts of the country while respecting local marketplace needs.
Financial and Operating Benefits Realized
- > $1Million in charges to contractor for quality issues found through QC program
- Established program to charge contractors for missed appointment time frames across all divisions
- New coding process and training for billing staff to ensure customers are billed for all appropriate services
- Decreased contractor costs due to consolidated coding for work tasks, reducing erroneous add-on charges
- QC program is designed to protect revenue as consolidated billing goes into place; strongly promotes high-quality installations that initially drive reduced contractor costs via charge back system with goal of reducing repeat calls within 30 days of installation; significantly reduces labor, truck rolls and service disruption
- Decreased contractor costs due to review of local pricing that is designed to garner a 3 – 5 % reduction
- Took an effective divisional model for CPE control and management company wide that incorporated reimbursement by contractors for lost equipment
- Increased “bench strength” due to cross-functional and cross-divisional communication, sharing of ideas and problem-solving established during engagement
- Increased multi-level participation in operational problem solving
- Work process that is being developed will save between 15 and 20 FTEs in one location that currently performs data entry of contractor billing codes
- Developed and implemented an approach to internal and external introduction of new contract elements that is easily adaptable to an open-bid model
- New pricing, certification and quality accountability expectations built into contracts without disruption to service/relationships
