Contractor Management: 10 Challenges of Using Multiple Platforms

Creating an effective contractor management plan requires companies to leverage resources efficiently, gather and analyze the correct information, and make informed decisions when outsourcing work.

However, this process is often easier said than done when a hiring client interacts with multiple contractors on different worksites, potentially in spread-out locations. Collecting, organizing, and interpreting these large data sets becomes complex, primarily if the company relies on multiple interfaces to manage workflow.

This article discusses ten challenges companies will face when designing a contractor management plan employing multiple platforms.

10 Challenges of Using Multiple Platforms

Designing a contractor management plan with a single platform for visibility is typically the most effective approach. Ten challenges of not leveraging a centralized platform are as follows:

1. Inefficient Workflows

Managing contractors across several platforms can result in a cluttered workflow. It may necessitate users switching between systems, resulting in extra administrative effort and delays in getting the required information. This inefficiency can influence communication, decision-making, and the overall efficacy of contractor management.

2. Data Fragmentation

Contractor-related data, such as contractor profiles, certificates, compliance documentation, and performance records, traverses several dashboards when using multiple platforms. Because of this fragmentation, having a comprehensive perspective of contractor information can be challenging, resulting in inefficiencies and potential data mistakes.

3. Limited Visibility Into the Contractor Management Plan

The lack of a single interface makes it difficult for hiring clients to see contractor operations, performance, and compliance. Tracking project progress, monitoring essential metrics, and identifying faults or bottlenecks becomes difficult. Transparency can stymie good decision-making and proactive management.

4. Poor Communication

When communications travel through multiple channels, such as email, phone calls, or physical papers, ensuring simple and efficient collaboration with contractors becomes more difficult. Task coordination, document sharing, and maintaining a constant flow of information become more time-consuming and prone to misinterpretation.

5. Disparate Compliance Process

Managing contractor compliance and risk mitigation can be more difficult without a single interface. Tracking certification, license, or insurance policy expiration dates becomes laborious and error-prone, increasing the risk of non-compliance. Implementing uniform risk management methods and monitoring contractor adherence to safety rules becomes more difficult.

6. Poor Integration

Integrating contractor-related data with other systems becomes increasingly more complex with a unified interface. Proper integration might require manual data transmission, custom integration solutions, or ineffective workarounds, increasing the risk of errors and system incompatibility.

7. Unnecessary Administrative Burden

The lack of a single interface increases the administrative cost of contractor management. Searching for and updating information, coordinating tasks, and maintaining documentation across various platforms all take more time and effort. This increased administrative workload may result in lower productivity and higher expenditures for the hiring client.

8. Subpar Scalability

Scaling and adjusting the contractor management plan to fit corporate growth or changing demands becomes more difficult without a single interface. Adding contractors, maintaining more data, or implementing process enhancements may necessitate extensive manual labor or system adjustments across several platforms.

9. Higher Costs

Implementing and maintaining multiple platforms can also result in higher costs, as each may come with separate maintenance expenses and the need for specialized IT resources. Additionally, the costs associated with data migration, integration, and potential system customizations can add up over time.

10. Reduced Visibility and Reporting

Using multiple platforms can limit a hiring client’s consolidated view of contractor performance and compliance. Reporting and analytics become challenging when different platforms scatter data across different systems, making it difficult to gain actionable insights and track key performance indicators consistently.

Effective Contractor Management Requires the Best Single Interface Solution

Using multiple platforms when designing a contractor management plan introduces significant challenges that can impede the effectiveness and efficiency of the overall process. These challenges range from data fragmentation and inefficient workflows to integration difficulties and reduced visibility.

As such, hiring clients should consider adopting a single platform for visibility and centralization to mitigate these challenges and promote a streamlined contractor management program. Allow Veriforce to help you streamline your operations through our contractor management solution; customized to fit your business needs.

Contact us today to learn more.