Vendor Management Systems (VMS) have come along way in recent years; with clean, easy to use interfaces, new innovative functionality built using modern, fast, scalable and reliable architecture, with Open APIs and better access to Data. In this article, we’re going to look at how organizations can benefit from re-evaluating their current vendor management system, many of which are built on legacy systems, and transition to a VMS that’s more modern, easier to use, built with features needed to address current businesses challenges.
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:
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?
In this article, we’re going to take a look at why the old legacy first-gen VMS providers have become more complex to use, and how organizations can benefit from re-evaluating their vendor management system and transitioning to a VMS that’s built for modern businesses.
Why traditional VMS technology is no longer up to scratch
The traditional legacy vendor management systems are slow, over-engineered, and built on layers of architecture, which means user frustration, and expensive and time-consuming implementations. Not to mention their inability to properly support their product. They are now, in some cases, even more difficult to use than the spreadsheets and SQL databases that the contingent workforce used to be managed on.
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
Are you responsible for managing your organization’s contingent workforce program, and feel like your vendor management system is slowing you down? Are you looking to buy your first VMS system?
If so, ensure you aren’t blinded by the legacy providers' shiny objects that mask an inherently difficult-to-adopt 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 VMS’. 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
Last but not least, once you have successfully gained the buy-in from your organization, it’s time to start looking for a VMS provider that you can partner with. You’ll want to make sure the provider is a good fit for your business and the objectives that you want to achieve from your VMS implementation.
Do you want a provider that is hands-on and can help you every step of the way, or do you want a provider that can deliver a simple-to-use solution that allows you to work independently? Your VMS provider will be an important strategic partner so make sure they have the knowledge and expertise you need for the implementation and any on-going support.
How You Can Get Started:
1 - Download our Free "Ultimate VMS Buyer's Guide" that provides you with everything you need to know about what to look for in a new VMS, how to choose the right VMS for your company, and even a checklist of questions to ask VMS Providers which you can compare with your current VMS Provider.
2 - Watch our Webinar on "Getting Started with a 1st Gen VMS" with tips on building a business case for a VMS. Many of these principals can be applied for choosing a new VMS Partner. Topics include: Building a Winning VMS Business Case, Avoiding the Pitfalls & Challenges and Tips for Successfully Implementing a VMS. Watch Webinar replay here: Getting Started with a 1st Gen VMS.
3 - 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!
Discover the Conexis VMS Education Center - Where all your Vendor Management Questions are answered!
About Conexis VMS
Conexis VMS 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. Our award-winning Vendor Management System is the most modern and advanced VMS tech stack available today - that has been built with the user in mind. It starts with the latest codebase and extends to our lightning-fast AWS microservice infrastructure. Add to that our Open API and Software Development Kit (SDK), making Conexis the lights-out leader in VMS technology. We provide the easiest, fastest, most modern, sophisticated, and flexible VMS on the market today. Learn more about why companies are Choosing Conexis.
Interested in comparing Conexis to your current VMS?
Whether you are looking for a new VMS Solution, or want to compare your current VMS to Conexis, 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!