Learn how Vixxo leverages our extensive labor rate & duration data
for repairs and market pricing for parts to contain costs for our clients.
Without proper oversight,
an estimated 70% of service providers will overbill.
Apply that 70% to thousands of service requests at multiple sites across your location footprint and the amount you may be overpaying for maintenance becomes significant.
Analyzing whether your invoices are fair, accurate, and in line with current market rates is also nearly impossible without being able to reference proven baselines for labor and parts data.
Vixxo takes the guess work out of your invoices and restores confidence that you are getting the most out of your maintenance spend.
|MINUTES OF EXTRA BILLED TIME||WORK ORDERS PER YEAR||PER HOUR|
ANNUAL LABOR OVERCHARGES
Most facility and equipment maintenance cost containment systems focus on matching labor rates - or worse - solely rely on manual auditing processes that occur after invoices are received. But with labor rates accounting for only 30% of an average invoice, how are you monitoring and managing the other 70%?
|With more than 30% of a typical customer's spend occurring on parts/materials and another 45% impacted by the often-overlooked element of duration, it is imperative to have a comprehensive system in place to monitor part costs and labor durations at a very granular level.|
Vixxo controls and in many cases eliminates overpaying for services (both labor and parts) through an invoicing control and auditing technology that generates accurate labor durations for repairs and market pricing for parts by performing a real-time price negotiation during service provider invoice creation.
From service initiation to the final invoice, Vixxo’s Work Order Management and Invoice Auditing System work seamlessly together to drive meaningful, sustainable results.
The Detailed Audit Process takes into account all aspects of the service event to deliver Measurable Results.
This data collection, inspection, and auditing happens on every service request, quote, and invoice we process.
Vixxo's cost containment system works behind the scenes at the transaction level to manage expenses. The following illustration shows how Vixxo actively monitors for attempts to charge above and beyond market rates for parts.
When the proposed price is judged as excessive (based on our extensive pricing database), our market price is proposed as an alternative & recommended price. Any deviations from our proposed price flags the invoice for a more detailed review and auditing by a Vixxo trade expert.
Similar guardrails are in place to identify and pre-emptively remediate labor rates and duration overcharges. When it comes to labor overcharges, we pull from our deep insight into what current market rates are (by trade and geography). To control total labor hours, we leverage our trade knowledge of how long it takes to complete most skilled labor jobs.
The line-item level of auditing shown above happens for every individual part, making sure your final invoice represents a fair and accurate price for materials & services rendered.
Using the 1 billion+ facility and equipment maintenance data points we have acquired over the past 20 years, we can estimate labor durations for the majority of service and maintenance jobs. We also leverage extensive databases to confirm parts and materials costs are in line with current market pricing.
And the best part is our system automatically inspects, compares, and validates every component of your invoices against the data for similar work in our service database. If a discrepancy is found, we will work with the service provider to help reconcile the expense to protect you from overpaying.
Because of Vixxo's automated auditing, the total size of the invoice is reduced by controlling the spend on labor and parts.
Vixxo Managed Invoiced Example
|Actual Customer Impact (Large Convenience Chain)
Average Cost Per Work Order Over Three Years
- Director of Facilities, Large Convenience Store Chain
A Large Convenience Customer had an extremely manual Invoice Audit process, leaning on 12 Facilities field personnel to audit and approve over 500,000 invoices annually. Due to lack of time/focus and technical expertise, overcharges were frequent.
Lack of controls was driving an estimated $3-5M in additional spend per year. First time fix rates were running lower than expected and creating frustration at stores. A lack of visibility into a given, specific asset being worked on was limiting decision making ability.