How much can you save when you implement a Vendor Management System (VMS)? In this article, we look at how much you can save by implementing a VMS and the reasons why.
In today’s dynamic labor market, organizations that rely on contingent workers face mounting pressure to control costs while maintaining workforce quality and agility. One of the most effective ways to achieve this is by implementing a Vendor Management System (VMS).
Companies leveraging a modern VMS can achieve up to 20% in cost savings (in some extreme cases even more!) through enhanced visibility, process automation, and improved supplier negotiations, invoice and time accuracy and more.
In fact, we have found that with our Clients at Conexis VMS, our historical savings equate to 12% hard dollar (real money) and 8% soft dollar (productivity and efficiency gains).
There are five ways that a VMS can control costs and deliver cost savings for your contingent workforce program:
1. Increased Visibility Reduces Hidden Costs
Many organizations struggle with cost leakage due to limited oversight of contingent workforce spending. Without a centralized system, rogue spend, duplicate invoicing, and non-standardized rates can drive up costs unnecessarily. A VMS provides complete visibility into workforce expenses, allowing businesses to track spend in real time, enforce budget controls, see markups clearly and eliminate waste.
How Visibility Saves Money:
2. Process Automation Eliminates Inefficiencies
Manual processes in contingent workforce management—such as requisition approvals, invoicing, and compliance tracking—are prone to errors and delays. These inefficiencies translate into higher administrative costs and lost productivity. A VMS automates these workflows, enabling faster hiring cycles, accurate billing, and seamless compliance management.
How Automation Saves Money:
3. Better Supplier Management and Cost Control
A VMS empowers organizations to negotiate better rates with staffing suppliers by providing market intelligence and performance benchmarking. By enforcing competitive pricing and holding vendors accountable for performance, businesses can significantly reduce labor costs while maintaining quality.
How Supplier Management Saves Money:
4. Workforce Optimization Reduces Unnecessary Spend
Without a VMS, organizations often over-hire, extend assignments longer than necessary, or pay inconsistent rates. A VMS ensures that the right talent is engaged at the right time and at the right cost, helping businesses optimize their contingent workforce strategy. Historical tracking through a VMS allows for significant demand planning and resource management.
How Workforce Optimization Saves Money:
5. Integration with Time and Attendance Systems Prevents Overbilling
One of the biggest cost risks in contingent workforce management is inaccurate time tracking. Overreported hours, buddy punching, and manual timecard errors inflate labor expenses. A VMS with integrated time and attendance tracking ensures accurate reporting and prevents overbilling.
How Time Tracking Saves Money:
Conclusion: The ROI of a VMS
Organizations implementing a VMS can expect to see cost savings of up to 20% by eliminating inefficiencies, improving compliance, negotiating better rates, and optimizing workforce utilization. Beyond cost savings, a VMS enhances operational efficiency, increases workforce agility, and provides strategic insights that drive better business decisions. In today’s competitive market, investing in a modern VMS isn’t just about cutting costs—it’s about gaining a sustainable competitive advantage.
Learn more about the Cost and ROI of a VMS here:
Would you like to save money on your contingent workforce spend?
Interested in learning how your organization achieve these savings? We would be happy to meet with you to share our experience and provide you with more information. Contact us for a free no-obligation consultation or a software demo and start optimizing your contingent workforce management. Plus, at Conexis, because of our innovative technology, we can have you up and running in weeks, not months so you can start realizing these savings as soon as possible!
About Conexis VMS
Conexis VMS is the world’s most modern vendor management system, built on the latest technology and designed with the user in mind. Conexis stands out from other VMS solutions due to its unique functionality and features such as open APIs and flexible data solutions which allow our customers to create fast, easy, and cost-effective integrations, that can be done in under a week, compared to the legacy systems, which have to custom code each one.
We are also leading the industry with our white-gloves customer care, our pricing and our fast implementation. 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. Learn more about our company and our award winning VMS Software.
Contact Us
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!
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