Selecting the right Vendor Management System (VMS) is one of the most critical decisions a Managed Service Provider (MSP) can make for their clients. As technology evolves, there are increasingly more factors to consider when selecting the right VMS.
For additional insights, we invite you to read our most recent blog published in 2024, on "5 Factors MSPs should know when choosing a VMS"
The increasing utilization of non-employee labor and the creation of a contingent workforce is now the go-to strategy for organizations that want to improve their flexibility and agility in a bid to meet ever-changing market conditions and produce work on a project-by-project basis.
In fact, according to a study from Deloitte, many large companies estimate that a staggering 30 percent of their entire procurement spend goes toward contingent workers.
The issue is, the management of this non-employee workforce is complex. Most companies lack visibility and a centralized management structure of their non-employee workforce, which leads to poor quality workers, high turnover, inefficient processes and high spend.
As a result, many companies are left seeking efficient solutions to better manage the crucial issues across their non-employee workforce. There are two primary methods that organizations turn to:
- Managed services providers (MSPs)
- Vendor management systems (VMS)
For an MSP to effectively do their job of managing an organization’s outsourced contingent workforce program, it’s absolutely essential that they have the right vendor management system in place.
In this blog, Conexis VMS looks at why managed services providers must use a VMS solution and what functionalities they should be looking for in the technology.
Why MSPs must use a VMS solution
If you were to search on Google anything related to managed services providers and vendor management systems, you will see countless articles that pit the two together. ‘MSP vs VMS’, ‘what’s the difference between MSP and VMS’ - these are just a couple of examples of the types of content that pops up.
Ultimately, however, an MSP cannot offer their service without using a vendor management solution to automate the management of their client’s contingent workforce and gain true visibility and control over it.
A VMS is the technology that underpins the entire solution, and it’s unheard of that an MSP would be running a program without a vendor management system in place. With that in mind, what do managed service providers need to look for when choosing a VMS to partner with?
MSP considerations to look for when choosing a VMS
Vendor management systems are traditionally expensive and come with a range of bells and whistles that your MSP, and its clients, simply do not need. When choosing a VMS the most important aspect is selecting the technology with the functionality that your MSP needs to fulfill its service to clients.
This functionality could include:
- Multi-tenancy to manage multiple clients
- Ability to submit multiple candidates at once vs one at a time
- Receivable reporting for various clients
- The ability to screen supplier candidates before sending to buyers
- Payrolling
- Multi-currency for clients in different locales
- MSP fee management to manage your fees
- Sales and tax functionality
- Consolidated invoicing and vendor payment management
- Time feed integrations
- Direct sourcing capabilities to boost internal non-employee hiring
- Multilingual features for clients in different countries
Looking for a VMS Partner?
At Conexis, we believe that MSPs need a better VMS. If you are looking for a VMS partner, contact us. We will work with you to help you dramatically improve the service you provide to your clients.
Why MSPs Choose Conexis VMS
Conexis VMS will improve your MSP program due to its simplicity, ease-of-use, cost-effective pricing program and speed to implement into your client’s contingent workforce management programs (which can be done in as little as 48 hours). Learn Why MSPs Choose Conexis 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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