Staffing costs are often the largest line item for companies that rely on contingent labor—but they’re also among the hardest to control. From fluctuating market rates to inconsistent markups and managers negotiating side deals with staffing suppliers, contingent workforce spending can spiral out of control without strong oversight. That’s where a Vendor Management System (VMS) comes in.
A modern Vendor Management System like Conexis gives you centralized control over supplier rates through built-in rate card management, helping you reduce costs, enforce consistency, and make data-driven decisions across your entire contingent workforce program.
Here’s how a VMS can help you save money on staffing costs - without compromising talent quality.
One of the most powerful cost control features of a VMS is the ability to standardize and enforce rate cards.
With a VMS, you can:
Define pay rates, bill rates, and markup caps by job category, geography, or even individual supplier.
Once those rates are embedded into the system, vendors can’t submit candidates or timesheets outside those parameters without triggering an exception workflow.
This prevents vendors from submitting candidates or timecards outside of contract terms.
This eliminates unauthorized rate creep - where vendors slowly raise prices over time - or inconsistent pricing across departments or regions. Your staffing spend stays predictable and aligned with your negotiated contracts.
Do you know exactly how much of your bill rate goes to the worker - and how much to the supplier?
With a VMS provides you with full visibility into pay rates vs. bill rates on every single assignment, allowing you to:
Easily see the markup applied, compare vendor margins across similar roles.
Analyze whether you're overpaying for talent.
Analyze markup percentages by vendor and role.
This level of detail empowers procurement and HR leaders to not only negotiate better deals, but also ensure vendors are competing on value - not just convenience.
Many companies confuse statutory costs (like payroll taxes, workers’ comp, and other mandated employer expenses) with vendor profit.
A VMS helps you break down your staffing spend, so you can distinguish between what’s legally required and what’s being added as margin.
This allows you to:
Ultimately, it lets you negotiate more intelligently and avoid paying inflated rates masked as “standard costs.”
One of the most powerful tools in a VMS is its ability to track and report on savings.
With a VMS you can
No more unexpected charges or last-minute billing disputes.
Because rate cards are embedded in the VMS:
This closed-loop invoicing process reduces manual checks, speeds up approvals, and builds trust between you and your suppliers.
When contingent labor costs escalate, it’s usually not due to a single wrong decision - it’s because there’s no system in place to enforce good decisions consistently.
A VMS brings structure and transparency to your staffing program:
Centralizes and Enforces rate cards and capping markups.
Exposes unnecessary costs.
Tracks savings in real-time.
Provides actionable spend data.
Helps procurement and HR make smarter decisions.
In short, a Vendor Management System helps you gain control over your contingent workforce spend and transforms cost management from reactive to strategic.
If you’re still relying on manual processes and spreadsheets, or your current software is not delivering what you need, it may be time to explore a modern solution like Conexis VMS - built to help you manage today’s workforce while preparing for tomorrow’s needs.
Conexis VMS is an award-winning vendor management system built specifically for mid-market contingent workforce programs. We combine enterprise-grade capabilities with unmatched flexibility, ease of use, and tailored customer support.
Explore how Conexis can help your team optimize contingent workforce management and reduce staffing costs - without the complexity of legacy systems.
👉 Learn more about our Company and why organizations Choose Conexis VMS.
Contact Us
Whether you are looking to change your VMS solution, or just getting started, we are here to help. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights). See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour, or Book a Personal Demo Today!
Additional Information on the Benefits of a VMS:
What is a VMS? | VMS Benefits | Free VMS Education Center | Why Choose Conexis VMS
Cost Savings: How you can save 20% on your contingent workforce costs
Reducing Risk: 5 Ways to reduce contingent workforce risk with a VMS
Co-Employment: How a VMS Shields you from Risk Improving Compliance: 10 Ways a VMS helps improve contingent workforce compliance
Managing Shift-Workers: 5 Ways a VMS helps you manage shift-based workers
Improving Invoicing: 5 Ways a VMS streamlines and improves invoicing
Increasing Visibility: 5 ways a VMS gives you visibility into your contingent workforce program
Measuring Staffing Agency Performance: How a VMS improves staffing agency performance