Are you looking to move away from those time-consuming methods of managing your contingent workforce program - and the vendors associated with it - with manual spreadsheets, in-house databases or Sharepoint-like websites?
That’s where the benefits of a vendor management system (VMS) can completely transform the ROI that your business realizes from its non-employee workforce.
A VMS is a web or cloud-based application that allows your organization to improve how it manages the entire vendor process, from the moment you source a vendor to payment. A vendor management system will centralize, automate and consolidate all your vendors into one platform, improving how you manage them.
With that in mind, this blog is going to take a look at the top five benefits your organization will realize when it improves the management of its non-employee workforce vendors through the use of a VMS solution.
#1 - Improve process efficiency through automation
Managing your vendors on manual spreadsheets is not only ineffective, it leads to huge amounts of wasted time that costs your business money. Through the use of a vendor management system, your organization will be able to automate all of the processes associated with managing vendors.
Processes that you can automate with a VMS range from sourcing, onboarding, approvals, payments and much more. This saves your company a significant amount of time, giving you those extra hours you need to focus on what matters - growing your business.
#2 - Gain visibility into vendor performance
A VMS solution allows you to consolidate your vendors into one centralized location. By storing this information on one platform, you’ll have access to the data you need to effectively track, manage and analyze the performance of your vendors.
By consolidating your vendors into one platform you’ll be able to clearly monitor, track and evaluate vendor performance. That results in your business being able to make more insightful vendor decisions that improve the ROI of your non-employee workforce management program.
#3 - Reduce costs across your contingent workforce program
Expenses don’t just impact the bottom line of your business, they make a dent in your company’s profitability. Thankfully, a vendor management system can help your company save huge amounts of money within its contingent workforce management program.
Not only will you save money through improved efficiencies, you’ll also save money from the improved visibility you have into your program. You will have the data you need to ensure you aren’t overpaying vendors, that you are sourcing the right non-employee workers and you are eliminating those expensive invoicing errors.
#4 - Increase vendor onboarding speeds
Vendor onboarding can be time-consuming when done manually, and on top of that the agreements need to be highly-strategic to ensure your contingent workforce program helps your company meet its workforce objectives.
While you need to ensure your vendor agreements are correct, the faster you onboard your vendors the quicker your business will start seeing results in its contingent workforce program. A VMS can automate all of these processes to significantly speed up the onboarding process.
#5 - Ensure you comply with workforce regulations
A byproduct of improving the way you manage the vendors associated with your company’s contingent workforce is compliance. A vendor management system helps your company to properly document your partnership with vendors and the non-employee workers that you hire, ensuring they don’t fall into the full-time employee category. It also helps to ensure your vendors are in compliance with your business rules and key statutory requirements in the specific region that your company operates in.
Want to learn more about how a VMS helps improve your company’s vendor management strategy? Contact Conexis VMS today. Our team of contingent workforce specialists would be happy to answer any questions that you may have.