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Contractor Procurement: Going Global?

Contractor Procurement: Going Global?

Contractor Procurement: Going Global?

Managing a global contractor program in an asset-intensive industry comes with a high degree of complexity and is regularly impacted by outside forces that affect how business is conducted. Some of the unique forces that shape and create changes in global asset-intensive contractor programs, such as those in Oil & Gas, Chemicals, Automotive, and Aerospace, are:

  • Operational & project changes resulting from environmental impacts
  • Local & Federal regulatory changes
  • Material & equipment scarcity/changes in availability
  • Mateial, equipment, and contractor price volatility
  • Local and federal political influences shaping business operations and project scope
  • Constant project expansions and cuts from the above factors

For asset-intensive companies that operate at a global scale, these outside forces are significantly amplified in their complexity as regulations, prices, environmental factors, and politics vary from region to region. As companies in these industries are looking to gain more visibility and improved oversight to their contractor engagements on a global scale, how can they navigate the amplified complexity with a Contractor Management Software? 


Should asset-intensive companies opt for several regionally-based Contractor Management Solutions and integrate them into an ecosystem, or go for a global software solution?


When it comes to running a successful global contractor management strategy, having a software solution that is capable of supporting vastly different regional process is a necessity. In the following areas we have seen superior coverage from a global solution as opposed to a network of regional solutions:

  • Ability to handle large volumes of work & maintenance orders with differing formats
  • Support for multiple types of rate structures (unit rates, skill rates, etc.)
  • Ability to quickly and easily modify pricing and pricing structures in contractor catalogs
  • Ability to create region-specific forms/approval flows
  • Management of multiple pay structures (T&M, milestone, catalog pricing, etc.) on a single order
  • Visibility and auto-calculation of rates for large equipment rentals, such as scaffolding
  • Comprehensive project and budget planning
  • Ability to manage schedules and time, with large amount of time exceptions
  • Billing processes that cater to a wide degree of supplier sizes and engagement levels
  • Ease of billing for large amount of small and infrequently engaged contractor companies

Choosing a single software solution provides more coverage than an ecosystem of software solutions catering to individual regional needs. 


Why is this? 


An ecosystem of regionally based contractor management software solutions can provide a high degree of regional process coverage and customization. 

At the same time, it is often incredibly difficult to integrate a network of regionally-based software in a meaningful way – data across regional systems usually doesn’t align, processes are so customized that contractor visibility often isn’t any stronger than it was prior to the ecosystem, and oversight of contractors usually isn’t any easier due to the software differences. It is for these reasons that we recommend choosing the global solution, AES/32.

Schedule a demo today to find out more about the comprehensive AES/32 platform.

What Our Customers Say

Global Process Owner Global Chemical Manufacturing Company

AES/32 has provided such a wide array of reporting and transparency that we have had wins in almost every area, some monetarily and others with functionality.

Maintenance Leader USA Fortune 500 Chemical Company

Fully integrating and digitalizing Contractor Management is no easy task – but AES/32 has proven to be worth it in the short time it’s been in use. The dashboard view of work completed and payments due shows what’s on track and bottlenecks for intervention. Returns will multiply significantly as we scale up the number of contractors over time across multiple sites.

AES/32 Process Owner Global Chemical Manufacturing Company

Our Purchasing group has also expressed that with AES/32, we have a much better picture of category spend, leading to better negotiations, leading to cost savings ultimately.

Procurement Leader Global Chemical Manufacturing Company

Naturally, better control comes with improved compliance. AES/32 made it easier to estimate, analyze, order, validate and pay against the contract.

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