As an increasing number of companies manage a contingent workforce, many are considering the implementation of Vendor Management Software (VMS). However, some companies hesitate due to misconceptions about the benefits a VMS can offer. In this article, we will explore what VMS technology is and address some of the common misconceptions surrounding vendor management systems.
What is a Vendor Management System?
VMS technology is a powerful software solution, which is typically web or cloud-based, that enables your company to better, and more strategically, manage its contingent workforce management program.
VMS technology automates and centralizes all contingent workforce management processes in one software solution, including engaging staffing agencies, sourcing top talent, onboarding contingent workers, time entry and approval, invoicing and so much more.
VMS technology will give your business unique insights into how your contingent workforce management program is performing so that you can make better vendor and hiring decisions in the future. Read more at: What is a VMS?
Benefits of a VMS
Companies that use a VMS to manage their contingent workforce are able to improve their visibility and control of their contingent workforce program, standardize rates and processes across their entire organization, better monitor staffing agency performance and many other benefits.
By centralizing data from every aspect of your contingent workforce, implementing VMS technology can unlock a myriad of advantages for your business:
The result? More visibility, lower risk and higher ROI from your contingent workforce program. Read more at: What are the Benefits of a VMS?
Top Misconceptions
Despite the many benefits of a VMS, some organizations including mid-market organizations or those with smaller volumes of contingent workers are still failing to see the benefits of a VMS. With that in mind, we’ve listed the top four misconceptions when it comes to vendor management software.
We hope this helps your organization realize the value in a VMS platform that’s perfectly designed for the needs and functionality of your business, no matter the size of your contingent workforce.
#1 - I can manage my contingent workforce program effectively using spreadsheets
For businesses that have not adopted a vendor management system, many rely on system's that they have created themselves like excel spreadsheets, internal databases, or SharePoint sites. However, these approaches to managing a contingent workforce program are inefficient.
Using a spreadsheet to manage your contingent workforce is labor-intensive, increases the risk of errors, and leads to disjointed processes across departments, affecting the visibility and control of your company's contingent workforce program.
How a VMS helps: A vendor management system acts as a centralized record for your business to consolidate all contingent workforce management processes and data into one easy-to-manage location. This gives your business clear visibility and control over vendor relationships, staffing agency performance, how much you’re paying and so much more.
Read more at: Benefits of a VMS vs Manual Spreadsheets
#2 - A vendor management system is too expensive for my business
Similarly to our last point, many traditional legacy VMS players charge high rates for the use of their system; including expensive implementation fees and also charge for every little change or upgrade. This leaves a VMS out of reach for organizations that need a VMS but don't have the budget.
Unaffordable pricing is no longer the case in the VMS Industry. There are now VMS providers with pricing that fits the budget demands of mid-market programs: Innovations in VMS technology now enable organizations with contingent workers of all sizes to have a more affordable VMS solution because the new tech stack VMS technology provides you with the features and options you need without the complexity or cost. Also, look for a VMS provider that doesn't charge you for set-up, onboarding or data storage fees.
Read more at How much does a VMS Cost?
#3. It takes months to implement a VMS
Many of the old legacy VMS providers will tell you that it takes months to implement a VMS and requires an exhaustive team or third party to complete the implementation. This may be fine for large enterprise companies, like large banks and energy companies, but for the rest of the world it's a daunting undertaking and a major distraction from their day jobs.
With the innovations in VMS technology occurring right now, the more modern VMS providers can stand clients up, train and go live in weeks not months.
Read more at: VMS Implementation in a Few Weeks - Fact or Fiction?
#4 - I can’t manage my shift-based workers with a VMS
Many of the older legacy vendor management systems struggle with skill categories that extend beyond the typical IT and administrative roles. Once you add in shift-based workers they fall down.
Today’s more modern, best-in-class VMS's can handle complex shifts, across multiple locations as well as support worker scheduling and rostering. With a more modern VMS, organizations can now manage an extended workforce across hundreds of locations, build rosters by work shift and send those rosters to each location and the supplying agencies right from the system, so everyone knows who is showing up and when. These rosters can be integrated into your attendance system which prevents unauthorized workers from gaining access to a location.
Read more about shift-work VMS capabilities at: Managing Shift-Based Workers with a VMS and Choosing a VMS for Light Industrial Shift Workers,
#5 - My contingent workforce volume is too small for the implementation of a VMS
Many of the traditional legacy vendor management systems were created for large enterprises with significant numbers of contingent workers. These systems are often complex and require a lot of time to operate.
Because of their complexity, these traditional vendor management systems have historically been too costly, overly complicated, and frustrating for most businesses to use. Not to mention the extensive time required to implement them within an organization.
That doesn’t mean your company can’t use a VMS: It just means you need to look for the right vendor management system partner. With innovations in VMS Technology, there are VMS platforms now built on the latest technology that have enabled them to scale back the complex and highly expensive functionalities of the traditional legacy VMS players, giving your business more options to choose from.
Read more at VMS for Small Businesses and VMS for Mid-Market Programs
Take the Next Step with Conexis VMS
Whether you are in the market for a new VMS solution or just getting started, Conexis VMS is here to guide you every step of the way. Our award-winning VMS and innovative approach sets us apart and we’re committed to helping you find the perfect VMS for your organization.
To get started, download a free copy of our Ultimate VMS Buyers Guide. This comprehensive resource includes:
Key VMS features to consider for your organization’s unique needs
Insights to ensure a high return on your investment
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 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 our company and why organizations are choosing Conexis VMS.
Contact Us
Whether you are in the market 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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