Vendor Management Systems (VMS) have come along way in recent years. Is your current VMS Provider keeping up with the latest technology or providing you with cost savings or the customer care you need? Is it time to look at changing VMS Providers?
In this article, we examine the benefits of reevaluating your current VMS, particularly if it's built on outdated, fragmented legacy systems, and how this can assist you in deciding whether to transition to a more contemporary, user-friendly VMS with features designed to address your business's current challenges.
Modern VMS systems, leveraging cutting-edge technology, now feature intuitive, user-friendly interfaces and innovative functionalities. They are constructed on modern, fast, scalable, and dependable architectures, equipped with Open APIs and enhanced data accessibility.
The Growth of Contingent Workforce Technology
Before the advent of the Vendor Management System (VMS), contingent workforce programs were built on advanced spreadsheets or SQL databases and managed manually by an organization's HR or procurement team. This management method was ineffective. It left organizations with virtually zero visibility into the performance of their contingent workforce program, and no centralization or standardized practices of how staffing agencies or contingent workers should be engaged by hiring managers.
The result? Below-par workforce quality and high contingent workforce spend.
Thankfully, the advent of contingent workforce technology changed that. The first VMS system was developed in the 90s, and evolution in technology since then has helped ensure organizations can better manage their contingent workforce program and benefits such as:
- Improved workforce visibility
- Automate workforce management
- Reduce costs
- Improve workforce quality
It’s near impossible to consider managing a non-employee program without the implementation of such technology today. But what if we told you that the increasing complexity of many of the traditional vendor management systems is re-introducing the contingent workforce management challenges of the past?
Why traditional VMS technology is no longer up to scratch
The traditional legacy vendor management systems can be slow, over-engineered, and built on layers of architecture, which means user frustration, and expensive, time-consuming implementations.
When a vendor management system isn’t working for an organization, employees will begin to look around these challenges. This often leads to work being done outside the system, reducing visibility into the contingent workforce program.
Businesses should instead look to implement a modern and easy-to-use VMS system
Today, there is a range of modern VMS systems that are simple, clean, fast, adaptable and configurable to each unique user. Dashboards can be changed, systems can be integrated and the complex functionalities of traditional vendor management systems are avoided.
These systems are easy to use and designed specifically for the workflows and preferences of your business. This dramatically improves vendor management system buy-in from your team, ensuring compliance across your contingent workforce program.
How can I re-evaluate my current VMS Provider? Where do I start?
Re-evaluating your current VMS Provider is similar to building a business case for a new VMS. You are essentially identifying your current pain points and challenges, identifying the benefits of changing your VMS provider, and identifying the right VMS provider for your organization. Here are some key points that may help you in your evaluation.
1- Assess and Baseline the Current State of your Contingent Workforce: Your Challenges
The first step is to start with an assessment of your current VMS, processes and related costs. You need to find out where your organizations pain points are and uncover all of the costs (including the hidden ones) both real dollars as well as dollars related to wasted time associated with your current processes.
2 - Get to know what innovations are available in the market today: What am I missing?
Many organizations may not know what new features are now available with more modern VMSs. They are not built on outdated architecture but rather on the latest codebase, the latest in interface design, architecture, and security. Open APIs make integrations a breeze and provide you direct access to your data on your terms. If you are focused on just legacy VMS providers, you may not know that better systems are out there.
In addition, modern VMS providers can address all skill categories, such as healthcare, manufacturing, light industrial, logistics, warehouse, and other high-volume, fluid workforces. These are just a few of the innovations that you should be looking out for.
3- Understand how a modern VMS Will Benefit your Business
It's important to clearly define the benefits that your organization will realize once a change is made. With a vendor management system, you can present a huge number of benefits to your organization’s decision-makers. Understanding the future state will help you estimate these hard and soft dollar savings. The result is a financial statement of benefits that the organization should expect to realize over 5 years.
A modern VMS will make it easier to improve visibility into your contingent 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.
4- Obtain Buy-in from Key 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.
5- Finding a VMS Provider
After securing your organization's support, the next step is to find a VMS provider to collaborate with. It's crucial to ensure the provider aligns well with your business needs and the goals you aim to achieve through your VMS implementation.
Consider whether you prefer a provider that offers comprehensive support throughout the process or one that provides a straightforward solution enabling you to operate independently. Your VMS provider will be a key strategic partner, so ensure they possess the necessary expertise and knowledge for both implementation and ongoing support.
Read more about changing your VMS here:
- Should I change my VMS? 5 Questions to ask yourself
- Can I change my VMS without changing my MSP?
- What to look for in a VMS - The Ultimate VMS Buyer's Guide
- Conexis Easy Switch - we make switching easy for you
Getting Started
Here are some resources to help you when you re-evaluating your current VMS
- Download our Free "Ultimate VMS Buyer's Guide" that provides you with everything you need to know about choosing the right VMS for your company, as well as a checklist of questions to ask VMS Providers: Send me a copy of The Ultimate VMS Buyer's Guide.
- Read "How to Build a Business Case for a VMS". The principals of building a business case for a new VMS can be applied when you are re-evaluating your VMS in order to prioritize your requirements and secure leadership buy in. How to Build a Business Case for a VMS
- Watch our Webinar on "2025 Trends in VMS Technology" that highlights the latest in VMS technology innovation. Discover if your current VMS is keeping up with the latest technology to support your business. Watch Replay: 2025 Trends in VMS Technology.
- Check out Conexis "Easy Switch" program. Conexis makes switching your VMS easy with our Easy Switch program. Our specialized Easy Switch Team will take care of every detail for you, ensuring a seamless transition. Our team meticulously plans and executes each step, from initial assessment to final implementation, and handles all the complexities, so you can focus on your core business activities without any interruptions. Plus, you can be up and running - fully operational - in just a few weeks. Read more at: Conexis Easy Switch
- Schedule a Free No-Obligation "Getting Started" Consultation with Us - We often meet with colleagues to help them learn about modern Vendor Management Systems. We would be happy to meet with you confidentially and give you advice on how to get started: help you assess your current baseline, identify your key challenges, and discuss the benefits that a more modern VMS will bring. Let's schedule a Free No-Obligation Consultation today!
You may also want to read these articles:
- Can i switch my VMS without changing my MSP?
- Is it time to switch VMS Providers? Ask Yourself these 5 Questions
Introducing Conexis Easy Switch
Conexis makes switching your VMS easy with our Easy Switch program.
Our specialized Easy Switch Team will take care of every detail for you, ensuring a seamless transition. Our team meticulously plans and executes each step, from initial assessment to final implementation, and handles all the complexities, so you can focus on your core business activities without any interruptions. Plus, you can be up and running - fully operational - in just a few weeks. Read more at: Conexis Easy Switch
Take the Next Step with Conexis VMS
Conexis is an award-winning VMS tailored specifically for mid-market contingent workforce programs. Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored service you require. Conexis delivers enterprise level software - without the enterprise level complexity and cost. Learn more about our Company and why organizations Choose Conexis VMS.
Contact Us
If you are looking to change your VMS solution, we are here to help. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights). See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour, or Book a Personal Demo Today!
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