Businesses across various industries have grown dependent on third-party partners to meet their operational needs, especially those that have allocated a budget for a contingent workforce. Effective management of contingent workers is essential, making a vendor management system (VMS) a vital tool. In this post, we discuss how a Vendor Management System works.
Managing Multiple Vendors can be Challenging
Many businesses use staffing agencies to source contingent workers, helping them to access hot skills, lower their workforce costs and access greater business flexibility and agility. Yet managing multiple vendors is far from easy.
Despite the challenges that come with successful vendor management within your externally-sourced workforce, many organizations are still using manual methods such as spreadsheets, in-house databases or Share-Point-like websites to manage their staffing agencies.
These methods of managing your staffing agencies are simply ineffective. They are time-consuming, lead to human error, and leave your company with fragmented processes and no standardization of vendor rates across hiring managers.
The result? Your business has absolutely no visibility or control over its externally-sourced workforce. That’s where vendor management software will help.
How a VMS improves your contingent workforce process
A vendor management system is a web or cloud-based software platform that empowers your business to manage its staffing agencies through the centralization, automation and consolidation of data.
By acting as a system of record for your company’s staffing agency processes, a VMS will give your business complete visibility and control of your staffing agencies and externally-sourced workforce processes.
How Does a Vendor Management System Work?
A vendor management system essentially works by acting as a centralized database for all of your contingent workforce management processes, storing all the information you need on one seamless platform.
It does, however, go above and beyond that. The functionalities of a VMS allow you to automate processes such as invoicing, process requisitions, process approvals, onboarding and much more to dramatically improve the accuracy and efficiency in which your company performs the processes related to managing vendors and non-employee workers.
Below are some essential ways in which vendor management software operates:
1- Consolidate all of your staffing vendors
With a vendor management system, all of your staffing agency data is stored in one centralized location. That means your staffing vendors are consolidated in one place, for all hiring managers to access.
Everyone within your organization will be working from the same information, no matter where they are accessing the data from. The result? Your company will gain clear visibility into staffing agency performance and you’ll be able to standardize staffing agency rates across your entire business.
2- Manage your entire externally-sourced workforce
The vast majority of vendor management systems will only address hourly-based temps through staffing agencies. However, there are new VMS systems that will help your organization manage the process to source and pay all externally-sourced workers.
That means with some vendor management software platforms, you’ll be able to manage all of your externally-sourced workers. That includes hourly temps, fixed-fee contractors, directly-sourced workers, independent contractors and even permanent hires through a staffing agency.
3- Automate your staffing agency processes
Unlike a spreadsheet where entering information and data is time-consuming and often susceptible to human error, a VMS will automate all of the processes associated with managing your staffing agencies and non-employee workforce.
Through the use of a vendor management system, your organization will be able to automate processes such as invoicing, process requisitions, onboarding, process approvals and so much more. In turn, you’ll realize significant soft cost savings as a result of improved efficiencies.
Learn More about How a Vendor Management System Works
To help you in understanding more about how a VMS works, and how to choose the right Vendor Management System for your company, download a free copy of our guide: "The Ultimate VMS Buyer's Guide"
This comprehensive guide provides you with everything you need to know when choosing a VMS; including the top 30 questions to ask vendors and a checklist when meeting with VMS Providers. Whether you are in the market for a new vendor management solution, or just getting started, this guide is for you!
The Conexis Difference
Conexis is revolutionizing the Vendor Management System industry with our cutting-edge tech stack and a sleek user friendly interface. Conexis is a robust, cloud-based, mobile-friendly software application that empowers your company to streamline and oversee your entire contingent workforce, regardless of the diverse skill sets you require.
Designed specifically with the user in mind, Conexis is an easy-to-use, cost-effective, and intuitive solution. With our market-leading work shift, scheduling, timekeeping, and credentialing capabilities, Conexis is the only VMS that can handle all skill categories without clunky third-party add-ons.
Interested in learning more about Vendor Management Solutions?
Whether you are looking for a new VMS Solution, or just getting started, we are here to help. See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!