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February 12, 2019

Does your EHS compliance software enable outsourcing?

Outsourcing Linkedin-1Due to fierce competition, companies across all industries are faced with significant pressure to drive down costs while increasing profits at the same time. While this may cause frustration and anxiety, the good news is that these pressures force companies to seek insights and innovation. EHS professionals can play a key role in helping meet these critical business demands if they have the right tools.

 

In almost all cases, EHS compliance management is an operational cost. Lowering the cost of compliance is an active pressure faced by every EHS and business executive in good times and more when the business is under stress. EHS regulatory compliance managers, especially those who work for organizations spread across a large geographic footprint or with many locations, have a real dilemma - should they execute their programs with internal staff directly under their management system control or is outsourcing at a lower cost appropriate?

 

When it comes to determining if outsourcing EHS compliance and maintenance activities is a viable option, there are a lot of questions to ask to ensure that potential savings aren’t erased due to contractors not being properly measured, monitored, and incentivized.

 

  • Are your agreements that govern EHS program functions set up in a manner where the contractor does only what they are paid to do and nothing else? If a contractor is hired to sample an outfall and notices a stormwater drain is improperly operating will they ignore the problem because it isn’t part of the contract responsibilities?
  • Are you and your procurement team spending more time focused on penalties than providing incentives to be proactive in your service agreements?
  • Do you have a way to routinely and actively monitor the quality of your partnership or are you limited to only an invoice at the end of the term?
  • Are you able to easily collect the data, incidents, and corrective actions you need to make critical decisions about contractor performance?

 

That is where the innovation part starts. Leading organizations are using information technology to support outsourcing success and drive costs savings with their contractor partners. They can use outsourced partner resources while meeting compliance obligations, keeping costs low, properly maintaining equipment, improving risk management, and capturing required reporting. They are finding groundbreaking opportunities for cost savings using software solutions that provide business intelligence. By capturing key metrics, they have critical performance analytics ready for sustainability reporting, industry benchmarking, and contractor performance analysis during the contract renewal process.

 

In a paper presented by Toni McCrory at Stormcon called “Private Stormwater Maintenance on a Grand Scale” the authors say “It is imperative that the contractor become more than just a contractor and play an active role in ensuring we exceed compliance requirements while operating in a low-cost manner. Therefore, the contract is structured to incentivize the right way, not just the easiest or cheapest way.” They also point out the winning elements saying, “As a result of the implementation of the performance-based contract, we have set higher expectations and offered more rewards. This approach has strengthened our partnerships with service providers, saved time and money on the national bid process, and promoted a longer-term strategy for each service provider.” The authors go on to point out that their software system is critical to enabling their teamwork. “Each category is carefully evaluated with data stored in a centralized compliance and workflow system, Enviance. Service providers submit monthly inspection data which is uploaded into the system and can be queried. All data stored in Enviance is information used to track the contractors’ performance on timely and effective maintenance.”

 

Enviance software makes it possible to use contractors for lowering Environmental, Health and Safety program costs without concerns that you are putting compliance obligations, control over record-keeping and reporting at risk. How do you work with your contractors today?

 

Does your EMIS Software make working with contractors and business partners as easy as your employees? If not, give us a call.

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