1 April 2021

What is a Vendor Management System (VMS)?

Wayne Burgess
Wayne Burgess

With an increasing number of organizations now relying on temporary workers or independent contractors to some extent, many businesses are actively looking at how they can better manage their non-employee workforce programs. 

The main challenge often comes for organizations with smaller contingent workforce budgets, who are typically using manual spreadsheets, in-house databases or Sharepoint-like websites to manage their staffing vendors. 

These manual, time-consuming and error prone methods of managing your non-employee staffing vendors lead to fragmented processes across your organization, a lack of visibility into non-employee and vendor performance as well as rogue spend across your non-employee workforce program.

Instead, your business can realize huge ROI by investing in a vendor management system (VMS)

Are you looking to improve how you manage your non-employee workforce and the staffing agencies you use to source those workers? In this blog we’re going to dive into what a VMS actually is, some of the key features these solutions have and how exactly they benefit your contingent workforce management program. 

So, let’s get started with some information on what a vendor management system is. 

What is a VMS?

A vendor management system is a web or cloud-based application that allows an organization to securely manage, and consolidate, staffing vendor services on a temporary, contract or permanent basis all on one centralized platform.

By centralizing and automating the complex challenges that surround managing staffing vendors, businesses can gain clear visibility into their staffing agency workforce, leading  to a wide range of both soft and hard savings. 

A VMS allows you to manage the entire vendor process in one central location, with the ability to automate each step of the staffing agency lifecycle - from engaging a vendor, sourcing talented contingent workers, onboarding, time entry, approval and invoicing.

A cloud vendor management system offers you complete accessibility, from any device with an internet connection - no matter where in the world you are currently located. 

The key features of a vendor management system?

As an organization with a smaller contingent workforce, your business will benefit the most by investing in a vendor management system that has the functionalities you need - without all of the complicated bells and whistles that an enterprise VMS features.

Here are some of the vendor management features that will improve how you manage your contingent workforce program:

  • The ability to consolidate your staffing vendors
  • The automation of vendor management processes. 
  • Program centralization so that your entire organization is in sync, and visible
  • Vendor guidelines that act as a framework for all hiring managers across your business.
  • Simplicity, for an easy to use platform.
  • Process requisitions and approvals. 
  • Scalability, so your technology can grow with your business.

How your non-employee workforce program will benefit from a VMS 

Now you know exactly what a vendor management system is and some of the key functionalities you should look for in a VMS, here are some of the ways that your business can drive ROI from using one. 

Increased visibility

You can’t manage what you can’t see, and that’s the main challenge with managing your staffing agencies on manual spreadsheets. A VMS consolidates your entire workforce and staffing agency data in one central location, making it easy for your company to gain complete control of the entire vendor lifecycle. 

Improved efficiencies through automation

Managing staffing agencies on manual spreadsheets results in fragmented processes and time-consuming steps. Using a vendor management system to automate these processes can result in significant efficiency gains across your organization, making processes such as requisitions, sourcing, onboarding, time entry, approval and payments seamless across every department within your business.

Analytics and reporting that improve workforce quality

The entire point of a non-employee workforce program is to access hot skills. That means you  need quality workers, and you need to be able to onboard them in short notice. A VMS gives you the visibility and analytical data you need to ensure that your staffing agencies are meeting vendor standards and helping your organization to meet its predetermined workforce targets.

Greater control over spend

When companies use a spreadsheet Vs. a vendor management system, it results in a lack of visibility and control over vendor performance, leading to the organization overpaying for non-employee workers. Through the visibility and control provided by a VMS, organizations can limit hidden costs and rogue spend by ensuring staffing agencies are meeting their targets and that they are paying temps or ICs the market rate.

Want to learn more about how a vendor management system can benefit your company’s non-employee workforce program? Contact Conexis VMS today. Our team would be happy to answer any questions that you may have.

Conexis VMS 2021 Trends eBook

Wayne Burgess

Wayne Burgess

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