Contractor Management

March 13, 2021

In operating firms (be it a refinery, a manufacturing plant or a mine), we are in business to make money. Focusing on core operations is the rule of thumb. With many of the challenges facing mining & manufacturing companies, conscious decisions on business value drivers are critical in order to reduce operational costs.

Digital technology can be leveraged to drive cost reduction initiatives. In cost reduction activities, low hanging fruits remain the contractor costs. Year after year, during value creation workshops we review the cost breakdowns, and it is always our first go-to lever to reduce operating costs. Contractors and consultant fees are enemy number 1 in these workshops.

Are we paying too much for the service that we are getting? How do we ensure that the use of our people is optimized?


There are many new solutions that can help these scenarios and completely remove human error from invoice approval process. With integrated IT solutions, the potential is not only on cost reduction, but also safety improvements.

Contractor management tool (part of our Digital Workforce offerings) is used to track the entry and exit of contractor personnel and equipment against a purchase order as well as automate the approval and processing of the invoices.

Solution benefits include:

Our Approach to Create Value

Business case on several sites prove to be very beneficial, both for the client and the contractors. The client is spending less time for invoice approval and keeps the contractor accountable for proper invoicing, and in return, the contractor is paid faster.

As with any other major IT integration projects, the initial hurdles are a pain, but here are some tips to make the transition smoothly… and this is where we remove bottlenecks to realize the full potential:

  1. Project Team - Clearly defined project team with roles and responsibilities. The solution touches from Finance, Procurement, IT to Contractor Management. Early indications that resources are not available to deliver the project may cause roadblocks and major delays in the execution

  2. Technology - The deployment requires an in-depth understanding of the current technologies, versions, and interfaces with the 3rd party software. This is best mitigated by assigning a System architecture with solid IT background needs to be involved from start to finish.

  3. Change Management - The solution involves several stakeholders and the communication, and the team engagement remain crucial. A solid change management expert is a must to ensure that the “what, when, why and how” are covered.

Learn more by contacting us