In today's world the contingent workforce continues to grow and will continue to do so for many years to come. Organizations are realizing that managing their extended workforce with spreadsheets and homegrown solutions is not the answer.
So, what’s the solution? To better manage your staffing agencies and non-employee workforce it’s crucial to consolidate your contingent workforce in one place using a (VMS).
A VMS will centralize your staffing agencies and contingent workers and it will automate the entire procure to pay process. A VMS also gives you critical data and reporting allowing you to measure your vendors’ performance, identify gaps and then close those gaps allowing for continuous improvement.
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
Once implemented, VMS providers typically charge a percentage of every dollar that processes through the Vendor Management System. Dependent on spend levels the cost of a VMS could be as low as 35 basis points and go up as high as a full percentage point assessed on all spend processed through the system.
In addition to the ongoing subscription costs, many VMS providers charge a standard implementation fee. Many of todays vendor management systems are incredibly expensive to implement. Traditional VMS providers are built on old tech stacks so when they do a client implementation the setup is labor intensive - this means implementations can cost hundreds of thousands, if not millions of dollars and go on for months.
Without more cost-effective options, 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 errors, 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 and complicated to use, what is your business going to do?
What if we told you that there’s a new modern VMS with much better pricing - allowing you to realize the benefits of vendor management software, without the expensive costs of other VMS providers?
The Conexis Difference: A new model of VMS pricing that gives you more for less!
While the complex functionality of traditional VMS systems is fine for some organizations, it doesn't mean your business has to struggle through it. The launch of Conexis VMS has changed this. For as little as $499 per month you can get started with Conexis with no setup fees.
Conexis is built on the latest tech stack meaning we can offer a sophisticated, secure, and scalable VMS at a much lower cost than the traditional VMS providers.
Not only that, but we’ve built Conexis VMS to be an easy-to-use platform. That means less time figuring out how your VMS works and more time focusing on the core competencies that drive true business growth!
Conexis VMS is the easiest vendor management system, built on the latest technology and designed with the user in mind.
Are you interested in more information about vendor management systems or how to improve your contingent workforce program? Get in touch with Conexis VMS today or Schedule a Demo. We would love to answer any questions you have in regard to vendor management.
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