Is your company using non-traditional workers to better control its labour costs, to access talent to better fill skill gaps within your organization, for improved flexibility or the ability to scale your workforce up and down as-and-when needed?
If you answered yes, then you’ll know just how difficult it can be to successfully manage a non-employee workforce. For an effective program, consolidating staffing agency data and gaining visibility into performance is absolutely key.
Despite this, the vast majority of organizations we speak to here at Conexis VMS are reporting no real visibility or control over their contingent workforce program, with fragmented processes across their business.
One of the main challenges we see for so many companies is that they are still using spreadsheets, in-house databases or Sharepoint-like websites to manage their staffing agencies.
Does this apply to your business? Unfortunately, manual systems for vendor management are simply not an effective way to manage your staffing vendors.
Managing your staffing agencies on manual spreadsheets will result in a lack of consolidation of vendor data and a complete lack of visibility into their performance. This leads to hidden risks, rogue spend, fragmented vendor processes across your business and the opportunity for human error to impact your data.
In this blog, we’re going to discuss how your organization can achieve successful vendor data management, and save significant soft and hard savings within your contingent workforce management program, simply by using a vendor management system (VMS) to manage your staffing agencies.
Let’s start with a quick look at what vendor management software actually is.
What is VMS?
A vendor management system is a software platform that enables organizations to securely manage, automate and consolidate the management of the entire staffing agency process in one easy-to-use centralized location.
By consolidating vendor data and vendor management in one centralized location, organizations are able to gain clear visibility and control over their entire staffing agency workforce.
The result? Your business will have greater control over non-employee workforce spend, improved internal vendor management efficiencies, greater visibility of staffing agency performance, reduced costs and improved workforce quality.
A VMS creates clarity through improved vendor management
With that in mind, how exactly does a VMS help your company to achieve successful vendor data management? We have listed just a few of the key ways in which a vendor management system gives you improved clarity into the management of your vendors:
Vendor consolidation
Engaging staffing agencies to source non-employee workers for your organization will leave your business with hundreds, or even thousands, of data points. Managing this data is virtually impossible manually, and doing so will have a huge impact on how effective and expensive your contingent workforce management program is.
Thankfully, a VMS will consolidate all vendor data across your organization into one centralized place. That means every hiring manager across your organization will know exactly what rates they should be paying vendors, and the manager who oversees the entire contingent workforce program will have complete visibility into staffing agency spend and performance.
Monitor and track vendor performance
A VMS stores all of your vendor management data in one centralized location, giving your business the visibility it needs to monitor and track staffing agency performance. You can use this data to monitor each stage of your non-employee workforce lifecycle, addressing problems as they occur and identifying areas in your program that can be improved.
By having a strategy to properly monitor and track vendor performance, you will ensure your staffing agencies are working successfully to help your business achieve its workforce targets.
Want to learn more about how a vendor management system brings benefits to your organization’s contingent workforce management program? Contact Conexis VMS today. Our team of vendor management software experts would be happy to help.
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