A growing number of organizations are sourcing contingent workers to meet their workforce targets. Temporary and contract workers give companies fast access to skilled workers, lower workforce costs and increase business agility.
To achieve those results, however, managing your vendors effectively is crucial. To do this, your business needs to build and implement a vendor management program.
Vendor management ensures your staffing agencies are helping your business to achieve its workforce targets, that you aren’t overspending, that you’re getting the best value for your money and much more.
With that in mind, in this blog we take a look at what vendor management is and four reasons why you should make it a priority when managing a contingent workforce program.
What is vendor management?
In its simplest definition, vendor management is the process that your organization builds to manage its vendors or suppliers. When it comes to your contingent workforce, vendor management is the process of managing your staffing agencies.
That process includes everything from sourcing your staffing agencies, negotiating contracts, agreeing standardized rates, setting relationship expectations, mitigating risk, analyzing vendor performance and much more.
Successful vendor management should be underpinned by the technology to support those processes through centralization and automation. That’s why a vendor management system (VMS) is crucial to successful vendor management.
Why vendor management is crucial for a successful contingent workforce program
#1 - Gain complete visibility into your contingent workforce
All too often companies are managing their staffing agencies and contingent workforce on manual spreadsheets and email communication. This results in fragmented processes and a complete lack of visibility into what’s occurring within your contingent workforce.
Vendor management is a crucial aspect of centralizing your information into one consolidated location, ensuring that your entire company and department leaders are singing from the same hymn sheet when it comes to vendor rates.
#2 - Reduce costs
When you gain complete visibility and control over your contingent workforce and staffing agencies, you’ll no longer suffer from the rogue costs that impact so many companies' bottom lines. Better control your costs while working towards a higher-quality workforce at the same time.
#3 - Mitigate vendor risks
Before working with any vendor, your company and that vendor will agree to specific standards and expectations. Through vendor management and proper documentation you will be able to make sure that those standards are met, and that the staffing agencies you’re working with are helping your company achieve its objectives.
#4 - Analyze and optimize vendor performance
With proper vendor management, your business will have the data it needs to track and measure staffing agency performance. You can use data to calculate KPIs such as time-to-fill, time-to-submit and turnover, and make sure that your staffing agencies are helping your organization meet its workforce targets.
How Conexis VMS can help
As we mentioned earlier in this blog, a vendor management system is absolutely crucial when it comes to successfully managing your staffing agencies. Yet most VMS were designed specifically for enterprise organizations with huge contingent spend, making them inaccessible for companies with smaller budgets.
Conexis VMS has been designed specifically for organizations with smaller contingent workforce budgets.
We’ve scaled back the complex and highly-expensive functionalities of the traditional VMS players, to design a vendor management system that makes it easy for your organization to manage and analyze your staffing agency performance.
Want to learn how it works? Get your free Conexis VMS demo today. We’d love to show you how our system gives you complete visibility and control over your non-employee workforce.