One of the top reasons companies experience a visible bleed in their contingent workforce and staffing agency spend is down to poor management of these processes. The problem is, these poor management methods also lead to hidden costs that could have a huge impact on a company’s bottom line without ever being noticed.
So what’s the solution? To better manage your staffing agencies and non-employee workforce it’s crucial to use a vendor management system (VMS).
A VMS will automate and centralize every step in your staffing agency and contingent workforce management, from measuring your vendors’ performance, onboarding workers and making payments.
The result? You’ll gain complete visibility and control over your contingent workforce and staffing agencies, leading to efficiency gains, reduced costs, data consolidation for better decision making and much more!
When choosing a VMS solution, one of the biggest factors in your decision will be vendor management system pricing. In this blog, we’ve listed everything you need to know about VMS solution pricing models.
The traditional VMS pricing model
The majority of vendor management systems are incredibly expensive to implement and maintain. That’s because they are typically priced based on a percentage of contingent workforce spend.
In this model, VMS providers charge a percentage of every dollar that processes through the system. For example, a VMS provider may charge a 0.5% fee on spend, so if a business spends $10million a year on non-employee labour then that’s a staggering cost of $50,000 dollars each year for use of the vendor management system.
That fee is simply for the use of the vendor management software, it doesn’t include all of the costs associated with sourcing, managing and billing your staffing agencies. When you add a VMS on top of this, the cost of your non-employee workforce strategy can quickly build up.
As a result, many organizations turn to manual spreadsheets, in-house databases or Sharepoint-like websites to manage their staffing agencies.
But this isn’t an effective solution either, in fact it might be costing your business almost as much in hidden costs!
These manual management methods result in a lack of consolidation of vendor data and a complete lack of visibility into staffing agency performance. The result? Hidden costs within your contingent workforce due to human error, rogue spend, and fragmented vendor processes across your business.
So, if a vendor management system is the only effective way to manage your staffing agencies and non-employee workforce but these solutions are too expensive, what is your business going to do?
What if we told you that there’s a new VMS pricing model that ensures you realize the benefits of vendor management software, without the expensive costs of traditional pricing models?
A new model of VMS pricing that gives you more for less!
The traditional pricing model from VMS providers was designed for large enterprises with huge non-employee workforce and staffing agency budgets. This left companies with smaller contingent workforce budgets with no solution, forcing them to turn to manual spreadsheets.
The launch of Conexis VMS has changed this.
We have introduced more traditional software license pricing, using the software as a service (SaaS) model to take the responsibility of hosting, maintaining and ensuring uptime of your VMS solution for a monthly license fee.
In fact, Conexis VMS is the very first vendor management system that’s designed with no minimum spend requirements - making it the perfect vendor management software for organizations with smaller contingent workforce management budgets.
Not only that, but we’ve built Conexis VMS to be an easy-to-use platform without the bells and whistles that you would never use of the more expensive VMS solutions. That means less time figuring out how your VMS works and more time focusing on the core competencies that drive true business growth!