1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Ferrandino & Sons ---- NEW payment system LOL

Discussion in 'Commercial Snow Removal' started by Ramairfreak98ss, Dec 23, 2015.

  1. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    i love it. crazy if any of you guys work for them at any cost.... they won't pay you.. read on.

    Dear Valued Service Partner,

    Last week we communicated to you two major initiatives Ferrandino & Son will launch in 2016 to enhance the way we work with our service partners. We told you that we are standing up a dedicated Procurement Group, whose sole function will be to source vendors, and we are standing up a Vendor Relations Group to manage vendor invoices from receipt to payment. Today we would like to provide some additional detail on the Vendor Relations Group and the benefits that our service partners can expect.

    The Vendor Relations Group or VRG is responsible for all aspects of vendor invoicing. The VRG consists of specialists who organize and distribute incoming invoices, validate invoices, and process invoices for payment. By reorganizing this function and training specialists, we have made it much more efficient and will process invoices much faster. The key position within this new group is the Vendor Liaison. This position was created specifically to establish one point of contact for our vendors to reach out to for all of their questions related to invoicing and payments. No longer will our vendors have to call a myriad of account managers to determine the status of an invoice. Have a question about where an invoice is in the validation process? Call the Vendor Liaison. Want to know when an invoice will be paid? Email the Vendor Liaison with the invoice particulars and you'll get a response as soon as possible. By accelerating the processing of invoices and payments as well as simplifying communications, we will enhance the vendors experience in working with Ferrandino & Son.

    Another important aspect of the VRG initiative that we mentioned last week but now want to explain in more detail is automated vendor payment. Using the automated vendor payment process means that we will be paying vendor invoices as soon as they are received and validated, no longer holding payment until we are paid by our clients. In addition to this feature, we will also streamline our payment terms to offer 2 options:
    1. Payment on 9 days of the invoice approval date at a 3% discount
    2. Payment on 45 days of the invoice approval date with no discount
    Currently, each of you have been defaulted into the first payment option. For a small discount, you can receive early payment which can improve your cash flow at rates that are often less than the cost of borrowing short-term working capital. If this is satisfactory, simply do nothing and in 14 days, your new payment processing timeline will take effect. If you prefer to utilize option 2, simply send an email stating that you want payment on 45 days of the invoice approval date with no discount to payments@ferrandinoandson.com, include your business name, address and phone number and our Vendor Relations Group will assign you to that option.

    On January 1st, the newly formed automated payment process will take effect. Regardless of which payment option you choose now, you maintain the right to opt into either timeline in the future. We believe it is critical that you always control which payment option is best for your business.

    As you can imagine, modifying the payment process for over 11,000 service partners is no easy task. There were many business rules and requirements we needed to address, as well as questions that came up from some of you who helped us put this together. Some of the more critical ones that are relevant to you are below.

    1. Any invoices with an invoice date of December 31, 2015 or earlier will be paid on the terms you are currently assigned. We did not want to "force" any discounts or timing changes to what already exists. So this means that it might be possible you are paid for invoices that have not aged as long. However, based on the current terms, this should all be cleaned up by the end of February.

    2. Are there any exceptions to these new terms? The answer is yes. Ferrandino & Son still maintains its contractual rights to withhold payment if we suspect there is a specific issue with that customer or the service that was delivered. However, these will be the rare exceptions and when they do occur you will be notified by Vendor Relations Group. In this instance, communication will be critical.

    3. Do you plan on offering electronic payment to your service partners? The optimistic answer is yes. We have begun exploring this as a payment method. As you can imagine, there is a significant cost to set up 11,000 suppliers with electronic payment. We have brought in outside consultants to help us navigate through what this would look like and if it is possible to implement with minimal cost to our service partners. We are confident we can work through a reasonable solution and will have some news on this by Q2 of 2016.

    4. When will the invoice begin to age towards the 9 or 45 day terms? The clock will begin to countdown once your invoice is approved. In the past, our process didn't allow for a quick approval, resulting in invoices working their way too slowly through the queue. In addition, when an invoice was submitted incorrectly, it only added to the approval time as it needed to be sent back to our service partner for correction and resubmission. So as part of this change, we created the Vendor Invoicing Team and put in place a more advanced processing cycle, ensuring each invoice received will be reviewed and either approved or rejected with notes and submitted back to the service partner within 5 business days of receipt.

    This will allow us to time stamp your invoices from the date they are approved. For any invoice that takes us longer than 5 business days to validate and there are no issues, your invoice date will revert back to the 5th business day so that you are not penalized if the validation delay is due to no fault of your own. This way, you secure the commitment from Ferrandino & Son that you won't be delayed in receiving your payments due to our internal processing requirements. Simply put, you have our commitment that we will hold our timeline.

    5. How fast can we invoice? This is a critical item. We strongly suggest for those who are on a monthly billing program to invoice as close to the 1st of the following month of service as possible. For those on a per service contract, we strongly request you invoice within 7 days of the work being completed. This way, we can work together to eliminate any backlogs due to an inconsistent invoice flow from you. Finally, we strongly suggest that the invoices that you submit conform to our suggested template and any required documentation is included. Failure to properly format your invoices or provide proper documentation will cause your invoice to be rejected and resubmitted, delaying your payment from being sent.

    Please Click Here for a Completed Sample Invoice
    Please Click Here for a Blank Invoice Template

    So moving forward, things you should be aware of.
    1. As of January 4th, the Vendor Liaison may be contacted for all questions regarding invoices and payments at:
    1. Telephone: (866) 571-4609 ext. 2555
    2. Email: vrgsupport@ferrandinoandson.com
    2. For any request to modify your payment option, you will email payments@ferrandinoandson.com. Your Account Managers, if contacted, will not be able to assist you and will direct you to this email address.
    The overall goal of these changes and previous ones is to improve the experience for each of our service partners. By isolating and simplifying some of the touch points between our companies (compliance, invoicing and payments), we believe we will overcome some of the largest hurdles you face today. You will still work with your existing Account Managers for the programs you currently provide service to and we expect our ability to provide improved support day to day will occur by removing some of these functions into separate, dedicated groups.

    As a company, we thank all 11,000 of you for the partnership you provide and we look forward to a great 2016 when all of these new processes are up and running.


    Michael C. Rose
    Chief Financial Officer
  2. Whiffyspark

    Whiffyspark 2000 Club Member
    from SOMD
    Messages: 2,403

    That's kind of sad. I get a direct deposit every month on the same day from brickman for the last month. No discounts, holding money, etc.

    They are small potatoes compared to brickman.
  3. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    You complain and complain and complain and then complain some more about NSPs yet continue to work for them? I guess I just don't understand. The definition of insanity is doing the same thing over and over again expecting different results.
  4. mnguy

    mnguy Member
    Messages: 80

    So why are you working for them?? We don't do any work for nationals and never will.
  5. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,779

    It never ceases to amaze me with computer programs the way that they are today, that managers feel the need to write form letters (as email) addressed generically. It comes off as cold and disrespectful. I finished a relationship this season with a 3rd party, they always paid eventually but the paperwork outweighed the work involved in servicing the client,and the contract wording changed to where I was responsible for protecting the site. My price doubled...
  6. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,237

    I've asked or pointed this oot to freak before. He never responds or replies.
  7. peteo1

    peteo1 PlowSite.com Addict
    Messages: 1,660

    I made it to the second paragraph and gave up. I can only imagine what their contract must look like. Glad we dont deal with these types of companies
  8. precisioncare

    precisioncare Junior Member
    from NY
    Messages: 24

    I will be honest...I worked for these jokers for the past 2 seasons, I received all of my money, not necessarily on time, but I did get it. I'm young and needed a place to start. It was very tempting to do it again this year and you guys on plow site are the main reason I did not do it again! And for that I thank you. Why keep working for someone who is taking $$ that would otherwise belong to me? They were a total p.i.t.a! And I was always up to date with my stuff. I hope that my decisions will benefit me in the future and the knowledge I have gained from working with a 3rd party was valuable as well. I will never do it again
  9. precisioncare

    precisioncare Junior Member
    from NY
    Messages: 24

    I am still on their email list, what freak posted wasn't even the contract, it's just some of the changes. It's hard to put into words how ridiculous the contract and the company really is
  10. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,779

    I dropped mine in Oct. They are still asking me for an updated COI (The copy they have doesn't expire til May 2016) "...but don't be a day late with your timeshits.... "
  11. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

  12. fireball

    fireball PlowSite.com Veteran
    Messages: 545

    you can see why they make the big bucks. "They are standing up" must be the 2016 buzz words for hey we figured out a new way to screw with you. And I just hate when the customer says the word "default". And when all else fails blame it on "inconsistent invoice flow"
  13. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Automatically take 3% right off the top as a default payment plan? GFYS. I would buss tables at a truck stop before I work for any nsp.
  14. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    We only work for Merit, we still have the remaining year or a 3 year contract for a large site and always get paid, though i still get numerous emails from almost all of the NSPs like above.
  15. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    Correct, the contract is about 30 pages, this was only some email ploy by them.
  16. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    They'll still claim when something simple like your auto renews 2/1/2016, they'll send you $200 checks when they already are past due many thousands, and then when they realize that they havn't received an updated copy by 2/1/2016 for your COI, "just showing its now good through 2/1/2017", they'll put your account on hold, and then if you forward an updated one from your agent the SAME Day, that week you are still not cut a check. They claim, "the system kicked it out that week", then the next week, walla, NO CHECK again. The third week you get in touch with the 5th person down the chain, and they ASSURE YOU that everything is fine and you'll get a check, then you get, BAM, $300, LOL. You're waiting on $3000, or $30,000, it doesn't matter.

    Finally, you talk to their head honcho, which tells you that they need TWO WEEKS processing time so they can update your certificate and unfreeze all payments. And in about two weeks you get another check finally, until the next issue arises, but now they're $60k in the hole and past due, you get $1,800 ..
  17. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    You have 8,400+ posts on plowsite Mark, no need to respond to internet trolls... you're like the car guy that supposedly owns 30 classic cars/exotics, photos of all and knows all about them, and no one knows you personally. You should post something useful once in a while.
  18. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    Hey Rammy,

    I thought Marks response was right on the money, I thought the samething reading ur opening statement.

    You have a habit of starting threads and abandon them once questions are asked. Questions you don't like

    Anyways, have a great day!
  19. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,237

    Lol.......Merry Christmas to you too.
  20. iceyman

    iceyman 2000 Club Member
    Messages: 2,925

    They seem like a stand up company to me