As the use of the contingent workforce continues to increase, the implementation of a Vendor Management System (VMS) becomes a bigger necessity for organizations that want to improve their contingent workforce visibility and better manage staffing vendors. In this blog, we take a quick overview of vendor management system pricing, why the big players are often out of reach and what your business should be looking for in vendor management system cost instead.
While the benefits of a vendor management system are vast, having a vendor management system has sometimes been out of reach for organizations with smaller contingent workforce spend. The investment into some of the larger technology players simply just wasn’t worth the ROI of implementation.
That’s no longer the case. In fact, there are now vendor management systems that have specifically been designed to be easy to use, fast to implement and cost-effective for businesses with smaller contingent workforce volumes.
While the use of a VMS is highly important for the successful implementation of a contingent workforce program, vendor management systems have long been out of reach for organizations with smaller contingent workforce volumes.
That’s because the traditional vendor management systems are complex and expensive. The big VMS providers have built these systems for enterprise organizations with complex functionalities and intense implementation methods.
While these are great for enterprise organizations that need these functionalities, it’s not so great for businesses that have fewer resources and need a simple solution that will save them time and money.
One of the biggest problems with the traditional VMS players is their pricing models. VMS providers typically base their price on a percentage of their customers’ contingent workforce spend.
For instance, a VMS might charge a 0.5 percent fee on contingent workforce spend for the use of the technology platform. While that sounds fairly small on face value, 0.5 percent for a business that spends $10million a year on contingent work would represent an annual cost of $50,000 for the use of the vendor management systems.
That’s a huge amount of money to spend on one piece of technology. Many organizations with smaller contingent workforce costs simply cannot justify spending that amount on a vendor management system.
Modern VMS providers have pricing plans for all organizations, no matter your contingent spend
Modern VMS solutions, such as Conexis VMS, are implementing SaaS models of pricing to provide cost-effective vendor management system options when compared to some of the bigger industry players.
These vendor management systems, which typically include no minimum spend requirements, allow organizations with smaller contingent workforce volumes to invest in more affordable contingent workforce management technology and realize a significant return on investment.
Download a copy of our free VMS Buyers Guide - it includes everything to know about a VMS and a checklist of all the questions you should ask a VMS provider; including the Top 10 Pricing questions.
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
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Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
Whether you are looking to switch your VMS, or just getting started, we are here to help. Contact Us for a Free No-Obligation Consultation, See how Easy Conexis is to use by taking a quick 2 minute Self-Guided Online Demo, or Book a Personal Demo Today!