400.000 SEK and 45 working days saved in one year using Homepal
Using Homepal, they took control of the follow-up of subcontractors. The result was a very good insight into supplier performance, a follow-up process without personal dependence, and a strengthened budget by not approving invoices where the agreement was not kept. The real estate company managed to save SEK 400,000 and 45 working days by streamlining the follow-up work. Here, we tell you how.
SEK 400,000
45 working days per year
No personal dependency
Very good insight into suppliers' performance
Strengthened budget by not approving invoices where the contract was not kept.
Quality review of suppliers.
Background
A medium-sized municipal housing company has about 30 external suppliers that are audited on a quarterly or half-yearly basis, which means that they conduct about 90 quality audits per year, usually more.
A project manager is responsible for the quality review of the subcontractors, but another business developer in digitalization has to help, as this person is an expert in the data in the property system. The process of extracting data from the real estate system is very difficult to navigate and complex, the business developer is the only one who knows how to do it.
Before Homepal
Before each review of each supplier, the project manager contacts the data expert and asks for data from the real estate system. This takes about 30 minutes, but there is no way to save the process, so the exact same procedure must be repeated for each supplier. So it takes at least 45 hours just to retrieve the data from the real estate system.
The business developer actually has other work to do that keeps getting interrupted when others in the organization ask for help, so sometimes it takes a couple of days to get the data needed. If the business developer is sick or on leave, the process stops completely.
"It feels very vulnerable, I understand that it's not a sustainable solution, but we haven't had a better alternative"
Once the project manager receives the raw data, it's time to process it in Excel, analyze it, and conclude whether the supplier is delivering according to the contract. The result, which takes about four hours to produce, is followed up in a meeting with the supplier. The process is repeated for all suppliers, which means that the quality audit takes more than 360 hours, 45 working days per year, and 9 full working weeks. Sometimes there is just not enough time.
"Then we have to do random sampling and just hope the rest is okay"
After Homepal
Now, the reality is completely different. With a few clicks, there is a ready-made, updated report in Homepal, fully automated. The project manager never again has to interrupt a colleague to get data, nor wait for help. Struggling with Excel for four hours per supplier is a thing of the past.
The project manager explains:
First of all, we have gained insight into how many of our suppliers have not actually delivered according to the contract. Previously, we only approved their invoices because we didn't have control, but we actually have the right to issue fines. That's a lot of money!
I got back 45 full working days per year. As soon as I open the dashboard, I immediately see which suppliers have not done the right job on time. What used to take me four hours per supplier now takes me ten minutes in total.
I see immediately which invoices should not be approved and also when we are entitled to a penalty payment. I have the right information to talk to contractors who are not behaving properly. And I find it extremely pleasant not to have to disturb a colleague or wait for help.
The business developer has achieved a much better work balance.
Homepal has unlocked a whole new world when it comes to my working day. Suddenly, I have time to finish what I need to do every day and can even catch up on things I previously had to prioritize. For example, information that used to take weeks to get from the real estate system is available at the touch of a button. I am really satisfied and happy!
