As a commercial real estate (CRE) professional, you are always looking for ways to reduce service provider costs while maintaining efficiency and top-quality service provision. Achieving a sizeable reduction in service provider costs can often feel like a huge undertaking. However, with the right tools and insights, this goal becomes well within reach. 

Read on to learn tech-powered strategies and solutions that can help you streamline your processes by up to 20%, saving you both time and money. From bid management and contract management to purchase orders and work orders, these proptech tips can make your triple-net (NNN) lease operations more cost-effective and efficient. 

Exploring the power of AI in commercial real estate

AI is casting an influential presence across all industries, and the CRE sector is no exception. Greg Lindsay recently shared his insights with industry experts at NAIOP’s I.CON East conference. Here are the key takeaways from his talk.

5 ways proptech can reduce costs 

1. Bid management software

Automated bid management greatly simplifies the vendor selection process and can help reduce service provider costs by identifying the most cost-effective options. That’s because it can navigate the field for you to single out the best-suited vendor for a given task, considering their skillset, experience, and reliability. The competitive bidding triggered by the system ensures that you secure the services at the best possible rate, enabling significant cost savings.

2. Contract management software

The manual nature of contract management is both time-consuming and prone to error. Using advances in contract management technology can help reduce service provider costs while also improving efficiency and accuracy. Ideally, your property management technology should allow you to generate, review, and sign contracts with vendors directly via tools like DocuSign, providing a centralized location for all your agreements. 

This centralized contract management not only enables swift access and easy editing but also organizes a clear view of all vendor relationships, contracts, renewals, and expirations. The ability to review and track contract terms, conditions, different vendor profiles, and contract histories proves invaluable for keeping a tight rein on service costs. 

The power of proptech in vendor management: Bids and contracts

Adopting proptech in the vendor management processes within the NNN space ushers in a new era of seamless, streamlined functionality. It enables automation, enhances transparency, and ensures compliance with industry norms.

3. Purchase order software

In managing service providers for your properties, creating and maintaining a streamlined process for purchase orders is crucial. An effective purchase order system can reduce service provider costs by ensuring timely procurement of goods and services, contributing significantly to operational efficiency, financial control, and vendor relations. 

With the right technology, you can tie purchase orders directly to work orders. This allows for the creation of POs for vendors and parts associated with specific tasks or capital projects.

4. Work order management software

Managing service requests quickly and effectively is crucial to reduce service provider costs and achieve operational efficiency in any property. It’s through effective work order management that service can become standardized, occupancy improves, and vendor relationships are strengthened. 

Incorporating an advanced work order management system enables you to drive efficiency and reduce overhead costs. It simplifies often complex process allowing for a clear, manageable approach to service request management and facilitating superior performance for your properties.

5. Accounting software

Streamlining transactions and vendor payments not only fosters stronger relationships with service providers but also helps to reduce service provider costs. That’s why it’s critical for your property management tech to integrate with your accounting system. This opens up features like the ability to considerably accelerate and simplify your payment process.  

The idea is to push all approved work orders and associated invoices directly to your accounting system. This automation eradicates the risk of mismanagement or delays in dealing with paper-based transactions and manual data entry while ensuring all approved jobs are accurately recorded and vendors paid promptly. 

What is vendor invoice management?

Maximizing operational efficiency and cost effectiveness remains a top priority for CRE professionals. Vendor invoice management is a key part of achieving these goals—a strategic process that, if harnessed correctly, can yield significant competitive advantages.

Conclusion 

It’s time to not just survive but to thrive in a world that is increasingly competitive and cost-conscious. You can tap into the power of automation, data, and foresight to reduce service provider costs and create an environment that’s sustainable and forward-thinking. 

Download the free “How to reduce service provider costs at NNN properties” guide to learn more about how proptech can help you reduce service provider costs at your commercial properties.