Still using manual spreadsheets or databases for your contingent workforce? This article explores how a managed service provider (MSP) and a vendor management system (VMS) can improve your management program.
Using Manual Spreadsheets
Using manual spreadsheets to manage your contingent workforce can lead to internal inefficiencies, a lack of centralization, human error, fragmented processes across your organization and no real vendor performance insights. All of this leads to hidden costs, rogue spend and a complete lack of visibility into your non-employee workforce and how your staffing agencies are performing.
You have an opportunity to address these with effective management solutions that give your business clear visibility and control over your vendors, leading to improved workforce quality, reduced costs and, ultimately, increased profits.
If you are just getting started, it's good to clarify the difference between an MSP and a VMS; and how they work together.
What is an MSP?
A managed services provider (MSP) is an organization that takes over the management of your entire non-employee workforce. It is a way of outsourcing the entire responsibility of managing non-employee workers and staffing agencies to a third-party provider, as opposed to being managed by your company’s HR or procurement department.
An MSP will take over all of the responsibilities of managing your contingent workforce and staffing agencies, from sourcing workers, managing vendor relationships, analyzing vendor performance, payments and much more.
MSPs can either be vendor neutral or not. Some managed services providers will hire contingent workers from their own established and approved database of staffing agencies, while others will have no alliance to specific staffing agencies.
What is a VMS?
A vendor management system, sometimes known as vendor management software, is a web or cloud-based system designed to act as a mechanism for companies to manage, automate and centralize the management of their non-employee workforce all on one platform.
A VMS will automate all of the processes associated with managing your contingent workforce and the vendors associated with it, including critical processes such as sourcing, onboarding, time entry, approval, payments and much more. This saves your organization countless hours and significantly improves internal efficiencies.
On top of automating these processes, the consolidation of a non-employee workforce program gives strategic insight into how the program is performing. This gives companies clear visibility into how vendors are performing, where rogue spend may be occurring in their non-employee workforce program, and whether staffing agencies are meeting predetermined targets.
VMS or MSP? Which is the best option?
It’s important to note that an MSP and a VMS aren’t inherently different solutions, they are just simply a different way for your organization to approach the management of your contingent workforce program. The internal use of a VMS streamlines contingent workforce management, while an MSP outsources the process freeing up your internal resources.
MSPs need a VMS to manage your Contingent Workforce
If you are a larger company, it's likely you have a managed service provider. The managed services provider will use a vendor management system to manage your contingent workforce on your company’s behalf. In today's world, some MSP have an existing relationship with a VMS and in other situations, their client's may have their own VMS that the MSP will partner with. For many organizations an MSP brings extensive VMS experience, and could offer additional talent pools necessary for agile growth, along with strategic consulting.
Smaller Companies may choose to manage their workforce internally with a VMS
A VMS is often selected by organizations with smaller contingent workforce spend or who choose to manage their contingent workforce internally.
As an organization with smaller temporary staffing spend, anywhere over $3 MM - should have a VMS, can realize huge benefits from the implementation of a vendor management system without going the outsourced route.
Interested in learning more about Vendor Management Systems?
Whether you are just getting started, or looking for a new VMS. Contact Us. See how easy Conexis VMS is to use with our quick 2 minute Self-Guided Tour. Contact us for a free no-obligation consultation, or schedule a Personal Demo.
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.
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