Are you frustrated with managing your contingent workforce in your warehouse using manual spreadsheets, and facing issues like slow and inefficient fill rates, subpar workforce quality, unexpected costs, and disorganized processes throughout? In this article, we look at how a vendor management system can help you better manage your warehouse contingent workforce.
Managing Contingent Workers in Your Warehouse
Placing temporary workers in your warehouse can bring you a wide range of benefits - all of which help your organization to achieve its business goals. We understand that there are many benefits of having temporary workers in your warehouse including:
1 - Workforce flexibility:
Hiring full-time employees unnecessarily wastes money and cuts profits, while insufficient staffing harms customer experience. Temp labor offers flexibility to meet seasonal demands and business fluctuations, providing the needed headcount when required.
2 - Save your business time and money:
Recruiting full-time workers is costly and time-consuming, especially with high turnover rates. Temp labor provides experienced candidates without these expenses.
3 - Access to qualified candidates:
Need a worker with specific skills like forklift operation or packing? Staffing agencies have a vast database of qualified candidates.
4 - Turnover reduction:
Another major benefit for warehouse managers is reducing turnover. High turnover, sometimes over 80%, leads to customer satisfaction issues and extra costs. Successful temp workers can significantly lower turnover.
Warehouse Labor Management Software: How a VMS can Help
The best software to manage your Contingent Labor is a Vendor Management System (VMS). Let's look at what a VMS is, including the benefits, cost and implementation timing.
1. What is VMS software?
Vendor management software, commonly referred to as VMS software, is a cloud-based platform designed to help your business acquire and oversee contingent workers and the channels that provide them, such as staffing agencies.
Implementing VMS software enables your organization to efficiently manage and acquire contingent workers, oversee staffing agencies, and, in some instances, handle permanent employees hired through a staffing agency.
VMS software facilitates the management of worker procurement, evaluation of vendor performance, onboarding of contingent and contract workers, payment tracking, and various other processes associated with your contingent workforce.
2. What are the benefits of using VMS software?
Utilizing a VMS system to centralize all vendor information in one location allows your business to experience a wide array of advantages. Here are some of the main benefits.
✔️ Gain complete visibility of your contingent workforce: A VMS system gives you complete visibility and control over your contingent workforce program. You’ll know where you're spending money, how your vendors are performing, how you are classifying workers and where you can make changes to optimize your entire contingent workforce program.
✔️ Improved efficiencies: Move away from manual, time-consuming and simply ineffective spreadsheets to an automated platform that improves ROI. VMS software automates processes such as sourcing, onboarding, time entry and approval, payments and many other tasks so you can focus on the core competencies that drive true business growth.
✔️ Reduce Risk: Avoid hefty fines and legal costs by ensuring you are classifying your non-employee workers correctly. A VMS solution gives you the tools you need to properly track, report and mitigate tenure, co-employment and risks associated with worker classifications.
✔️ Reduce contingent workforce spend: The most obvious benefit of a VMS is to reduce your overall contingent workforce spend. A VMS gives you full visibility to costs allowing you to identify areas of potential cost reduction. A VMS system brings your entire company on board enabling hiring managers to ensure they are paying market rates to staffing agencies when sourcing nontraditional workers.
3. How much does VMS software cost?
Conventional vendor management software providers require significant time and expense for both implementation and maintenance. Their pricing typically depends on a percentage of a company's contingent workforce expenditure. These costs can rapidly accumulate, significantly affecting the return on investment you gain from utilizing a VMS system.
Conexis VMS has changed the game by providing our clients with the option to pay a flat monthly fee. Our software as a service (SaaS) model which means we’re the very first vendor management system designed with no minimum spend requirements. Just pay the license fee every month and the system is yours. Learn more at: "How much does a VMS cost?"
4. How long does VMS software take to implement?
If your contingent workforce program and staffing agency management are visibly struggling, your organization will likely want to integrate a VMS system into your business promptly.
Implementing VMS software can range from straightforward to complicated, depending on the functionalities you require, the integrations you need, and the provider you choose to collaborate with. Learn more at: "How long Does it Take to Implement a VMS?"
VMS for Warehouse and Light Industrial: How Conexis VMS Can Help
Light Industrial workers make up over 60% of the Conexis population. Our logistics clients love us because Conexis enables them to do their job faster and get better quality workers, who stay through their assignments more often. Conexis has developed VMS functionality specifically to support high volume worker environments such as digital site rosters and easy time clock integrations.
1 - Reducing No Shows and Turnover - When your logistics workers fail to show up or leave their jobs early, it dramatically increases your expenses, diminishes business efficiency and jeopardizes your entire customer experience. Conexis VMS deeply understands the intricacies and challenges associated with managing a contingent workforce in your logistics operations. That’s why we built our easy-to-use Vendor Management System (VMS). Conexis VMS clients tell us that after implementing Conexis their no-shows and turnover have dropped by over 50%
2 - Time and Attendance Integrations - Conexis not only integrates with your warehouse time clock system, but we can also supply the system. Regardless of the time clock system that your business uses, Conexis VMS has worked with, and integrates easily with, most time clock systems on the market today.
Learn Why Companies Choose Conexis for Warehouse & Light Industrial
About 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.
Contact Us
Whether you are looking to change your VMS solution, or just getting started, 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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