Lack of visibility into your contingent workforce management program and no control over vendor spend can have damaging implications for your business’s bottom line. That’s why many organizations are turning to external talent management technologies.
The use of a vendor management system (VMS) can completely transform how you manage your non-employee workforce and the vendors you use to engage them.
A VMS is a web and cloud-based application that allows your organization to source, engage, manage its entire non-employee workforce, and manage the vendors associated with that process, in one automated solution.
By using a VMS your business will have improved visibility into its non-employee workforce, better tracking of vendor performance, reduced costs, more efficient processes, complete consolidation of your vendors in one location and many other benefits.
Simply understanding the benefits of a vendor management system, however, isn’t enough. You need to win the support of your entire organization, and its decision makers, by building a winning business case for VMS implementation.
How to build a business case for a VMS
For organizations still using manual processes or outdated automation tools, building a business case can feel overwhelming at first. It seems a huge task to centralize your entire external workforce management and vendor procurement processes.
The implementation of a vendor management system, however, will bring huge benefits to your business, including cost savings, better vendor choices, improved hiring decisions, increased efficiency and much more.
In fact, according to figures from Aberdeen Group Research, 89 percent of organizations that are considered “best-in-class” in the management of their contingent workforces had implemented VMS technology into their processes.
With these benefits in mind, how do you convince the rest of your organization that they should get behind a centralized non-employee management platform? In this blog, Conexis VMS lists a few important tips that will help you build a successful VMS business case.
Assess the state of your current non-employee workforce management strategy
The first step in building your VMS business case should always start with an assessment of your current non-employee workforce management program. You need to find out where your pain points are, and uncover the hidden costs and wasted time associated with your current processes.
There’s no way you can make a successful business case for VMS implementation if you can’t explain to your CEO or COO why your existing manual processes are costing your company more than the implementation of new technology.
Understand how VMS implementation will truly benefit your business
The most important aspect of any business case is to clearly define the benefits that your organization will realize once a change is made. With a vendor management system, there’s a huge number of benefits that you can present to your organization’s decision makers.
A VMS will significantly improve your visibility into your non-employee workforce, and dramatically improve how you manage your vendors. The result will be an automated process that leads to greater cost savings, saved time, improved hiring decisions, the consolidation of vendors, more insightful analytics and much more.
Obtain buy-in from important stakeholders
You now understand why your current external workforce management strategy is costing your business money, and you know how the implementation of a vendor management system will lead to cost savings, improved efficiencies and better vendor decisions. One thing you don’t yet have, however, is the buy-in of your stakeholders.
Whether you just report to a CEO or you have multiple teams that are part of the decision-making process (such as procurement hiring managers, HR, IT and finance), it’s important that you receive buy-in from every stakeholder involved in non-employee management.
These stakeholders are far more likely to support VMS implementation when they know how it will benefit and improve their current processes.
Find a VMS provider
Last but not least, once you have successfully gained the buy-in from your organization, it’s time to start looking for a VMS provider that you can partner with. You’ll want to make sure the provider is a good fit for your business and the objectives that you want to achieve from your VMS implementation.
Do you want a provider that is hands-on and can help you every step of the way, or do you want a provider that can deliver a simple-to-use solution that allows you to work independently? Your VMS provider will be an important strategic partner so make sure they have the knowledge and expertise you need for the implementation and any on-going support.
If you have any further questions about the benefits of a vendor management system or how you can build a business case for its implementation, contact Conexis VMS today. Our team of VMS experts are ready to answer any questions that you may have.