5 June 2023

VMS & MSP Adoption: Keys to Successful Contingent Workforce Management

Wayne Burgess
Wayne Burgess

Adoption plays a critical role in the success of a contingent workforce program. In this blog, we look at why adoption of your VMS and MSP is crucial for maximizing the benefits of a contingent workforce program.

A contingent workforce refers to a pool of workers who are not permanently employed by a company but are engaged on a temporary, project, or contract basis. While the advantages of this workforce type are numerous, including cost savings and increased flexibility, their successful management is contingent upon effective utilization of resources like aVendor Management System  (VMS) and Managed Service Providers (MSP). 

The adoption of these tools plays a critical role in the success of a contingent workforce program. With that in mind, let’s take a further look at these resources and why they are key to a successful contingent workforce program.

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What is a VMS?

The Vendor Management System is a web-based software application that facilitates the procurement and management of contingent labor. It provides a centralized platform for businesses to automate their contingent workforce management processes. 

The VMS ensures transparency, control, and compliance in managing temporary and contract labor, resulting in improved efficiency and cost savings.

Despite the benefits that a VMS offers, its potential can only be fully realized through broad and consistent adoption within the organization. The adoption of VMS allows for a streamlined process, reducing the administrative burden on HR and procurement departments. It improves visibility into the contingent workforce, allowing for real-time tracking of contingent labor spend, performance, and risk management. A VMS also encourages compliance with labor laws and regulations, minimizing the risk of non-compliance penalties.

However, adoption is more than just the implementation of a system; it involves fostering an organizational culture that values the benefits brought by a VMS. This often requires change management efforts, including training and support for users, to ensure they understand the value of the VMS and can use it effectively.

What is an MSP?

Managed Service Providers (MSP) are another critical component of a successful contingent workforce program. MSPs are companies that take on the responsibility of managing a client's contingent workforce program. They provide services like supplier selection, contract negotiation, performance tracking, and risk management. They can also manage the VMS on behalf of the client, ensuring that it is effectively utilized.

Like with VMS, the adoption of MSP is crucial for maximizing the benefits of a contingent workforce program. An MSP can bring industry expertise, best practices, and economies of scale that can drive significant efficiencies and cost savings in managing contingent labor. However, for an MSP to be effective, the organization must fully embrace and integrate it into its contingent workforce management processes.

A successful MSP adoption entails a shift in mindset, from viewing the MSP as an external vendor to considering them as a strategic partner. This shift is crucial for fostering a collaborative relationship that allows the MSP to fully understand and align with the organization's goals, strategies, and culture. It also requires effective communication and change management to ensure that all stakeholders understand the role of the MSP and are committed to its success.

The adoption of tools like the VMS and partnerships like MSP are pivotal for the success of a contingent workforce program. They provide the mechanisms to effectively manage contingent labor, driving efficiencies, cost savings, and compliance. 

However, adoption is not merely about implementing a system or engaging a service provider; it involves a change in mindset and culture. It requires a commitment to leveraging these resources to their full potential, fostering an environment that values and supports their use. 

In the rapidly evolving world of work, the adoption of these tools and partnerships is not merely a competitive advantage; it is a necessity.

Interested in learning more about Vendor Management Solutions?

Whether you are looking for a new VMS Solution, or just getting started, we are here to help.  See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour.  Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!

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Wayne Burgess

Wayne Burgess

Wayne Burgess is the President of Conexis, a technology company focused on helping organizations get control of their Contingent workforce.

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