1 June 2021

How Much Does a Vendor Management System (VMS) Cost?

Wayne Burgess
Wayne Burgess

One of the top reasons companies experience a visible bleed in their contingent workforce and staffing agency spend is down is due 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 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

The majority of vendor management systems are incredibly expensive to implement and maintain. Traditional VMS providers are built on old tech stacks so when they do a client implementation the setup is labor intensive - this means implementations that can cost hundreds of thousands of dollars, if not millions.

Once implemented, VMS providers charge a percentage of every dollar that processes through the system. For example, a VMS provider may charge a 1% fee on spend, so if a business spends $50 million a year on non-employee labor then that’s a staggering cost of $500,000 dollars each year for use of the vendor management system.

As a result, many organizations turn to manual spreadsheets, in-house databases or SharePoint-like websites to manage their staffing agencies.

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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? 

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. 

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.

Want to learn more? Get in touch with Conexis VMS today. Our team of vendor management software experts would love to answer your questions, or even give you a free demo of our platform!

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Wayne Burgess

Wayne Burgess

Wayne Burgess is the President of Conexis, a technology company focused on helping orgainizations get control of their Contingent workforce and Staffing agencies. Wayne has over 25 years of global procurement, consulting and operational delivery experience. Prior to founding Conexis, Wayne held senior roles in Accenture’s Procurement division with specific experience across the Services and Contingent Labour spectrum. Wayne has run programs from as small as $5m to as big as $2bn and has a proven track record of driving significant customer value.

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