27 July 2022

A Quick Overview of Vendor Management System Pricing

Wayne Burgess
Wayne Burgess

As the use of the contingent workforce continues to increase, the implementation of a vendor management system (VMS) becomes a bigger necessity for organizations that want to improve their contingent workforce visibility and better manage staffing vendors. 

The benefits of a vendor management system are vast, including:

  • Improved contingent workforce visibility
  • The ability to better monitor and track staffing agency performance

The problem is, vendor management systems have typically been out of reach for organizations with smaller contingent workforce spend. The investment into some of the larger technology players simply just wasn’t worth the ROI of implementation. 

That’s no longer the case. In fact, there are now vendor management systems that have specifically been designed to be easy to use, fast to implement and cost-effective for businesses with smaller contingent workforce volumes. 

In this blog, we take a quick overview of vendor management system pricing, why the big players are often out of reach and what your business should be looking for in vendor management system cost instead. 

We hope this blog helps you select a cost-effective and easy to use VMS.

MSP EBook

The problem with traditional vendor management system pricing

While the use of a VMS is highly important for the successful implementation of a contingent workforce program, vendor management systems have long been out of reach for organizations with smaller contingent workforce volumes.

That’s because the traditional vendor management systems are complex and expensive. The big VMS providers have built these systems for enterprise organizations with complex functionalities and intense implementation methods. 

While these are great for enterprise organizations that need these functionalities, it’s not so great for businesses that have fewer resources and need a simple solution that will save them time and money. 

One of the biggest problems with the traditional VMS players is their pricing models. VMS providers typically base their price on a percentage of their customers’ contingent workforce spend. 

For instance, a VMS might charge a 0.5 percent fee on contingent workforce spend for the use of the technology platform. While that sounds fairly small on face value, 0.5 percent for a business that spends $10million a year on contingent work would represent an annual cost of $50,000 for the use of the vendor management systems.

That’s a huge amount of money to spend on one piece of technology. Many organizations with smaller contingent workforce costs simply cannot justify spending that amount on a vendor management system.

Thankfully, there’s now new vendor management pricing solutions available. 

Modern VMS providers have pricing plans for all organizations, no matter your contingent spend

Modern VMS solutions, such as Conexis VMS, are implementing SaaS models of pricing to provide cost-effective vendor management system options when compared to some of the bigger industry players. 

These vendor management systems, which typically include no minimum spend requirements, allow organizations with smaller contingent workforce volumes to invest in more affordable contingent workforce management technology and realize a significant return on investment. 

Conexis VMS is the very first vendor management system designed specifically for organizations with smaller contingent workforce volumes. The platform has intentionally been created to be both cost-effective and easy-to-use for organizations that don’t need the complex bells and whistles of the traditional VMS players. 

Are you interested in learning more about how you can significantly improve your contingent workforce management through the implementation of Conexis VMS? Book a free demo today.

New call-to-action

Wayne Burgess

Wayne Burgess

Prior to starting Conexis, Wayne was a tireless champion for clients within Accenture’s Procurement practice with specific experience across the Services and Contingent Labour spectrum. Wayne has run programs from as small as $5m to as big as $2bn. Wayne has deep consulting and operational delivery experience. He is a talented leader of organizations and has a proven track record of driving significant customer value.

Subscribe to the Conexis Blog