---
title: How to Build a Winning Business Case for a Vendor Management System
description: Here are tips on how to build a business case for a vendor management system (VMS)
image: https://www.conexisvmssoftware.com/hubfs/vms-business-case-1200-627-50kb.jpg
---

- [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo)
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- VMS 101 
    - - [What is a VMS?](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms)
          - [VMS Benefits](https://www.conexisvmssoftware.com/benefits-of-vendor-management-system)
          - [How to Choose the Best VMS](https://www.conexisvmssoftware.com/how-to-choose-the-best-vendor-management-system-vms)
          - [Getting Started with Your 1st VMS](https://www.conexisvmssoftware.com/conexis-easy-start)
          - [Changing Your VMS Provider](https://www.conexisvmssoftware.com/how-to-switch-vendor-management-system-vms)
          - [Modern vs Legacy VMS](https://www.conexisvmssoftware.com/legacy-vs-modern-vms)
          - [What is a White-Label VMS?](https://www.conexisvmssoftware.com/white-label-vms)
          - [Mid-Market VMS](https://www.conexisvmssoftware.com/vendor-management-system-vms-for-mid-market-contingent-workforce)
          - [VMS 101: How a VMS Reduces Costs](https://www.conexisvmssoftware.com/vendor-management-system-vms-cost-savings-)
          - [VMS 101: How a VMS Reduces Risk](https://www.conexisvmssoftware.com/vendor-management-system-risk-reduction)
          - [VMS 101: How a VMS Increases Workforce Visibility](https://www.conexisvmssoftware.com/contingent-workforce-visibility-vms)
          - [VMS 101: How a VMS Improves Hiring](https://www.conexisvmssoftware.com/improve-contingent-workforce-hiring-performance)
          - [VMS 101: How a VMS Improves Operational Efficiency](https://www.conexisvmssoftware.com/increasing-operational-efficiency-vms)
          - [VMS 101: How a VMS Improves Time-to-Fill](https://www.conexisvmssoftware.com/vms-improves-time-to-fill)
          - [Contingent Workforce Management | Guide](https://www.conexisvmssoftware.com/contingent-workforce-vms)
          - [VMS for Staffing Agencies | Guide](https://www.conexisvmssoftware.com/vms-staffing-agencies-guide)
          - [Managing Vendors | Guide](https://www.conexisvmssoftware.com/what-is-vendor-management)
          - [Managing Staffing Agencies | Guide](https://www.conexisvmssoftware.com/managing-staffing-agencies-with-a-vms-guide)
          - [VMS & Direct Sourcing | Guide](https://www.conexisvmssoftware.com/what-is-direct-sourcing-guide-vms)
- [WHY CHOOSE CONEXIS VMS](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis)
- SOLUTIONS 
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          - [Procurement](https://www.conexisvmssoftware.com/vms-for-procurement)
          - [HR & Talent Acquisition](https://www.conexisvmssoftware.com/vms-for-talent-acquisition)
          - [Contingent Workforce](https://www.conexisvmssoftware.com/vms-for-contingent-workforce-leaders)
          - [MSP](https://www.conexisvmssoftware.com/vms-for-msp-managed-service-provider)
          - [Staffing Agency](https://www.conexisvmssoftware.com/vms-for-staffing-agencies)
          - [Mid-Market Programs](https://www.conexisvmssoftware.com/vendor-management-system-vms-for-mid-market-contingent-workforce)
    - - **My Industry**
          - [Manufacturing](https://www.conexisvmssoftware.com/vms-for-manufacturing)
          - [Warehousing, Distribution and Logistics](https://www.conexisvmssoftware.com/vms-for-warehouse-logistics)
          - [Healthcare](https://www.conexisvmssoftware.com/vms-for-healthcare)
          - [Education](https://www.conexisvmssoftware.com/education-behavioral-health-staffing-vms)
          - [Government](https://www.conexisvmssoftware.com/vms-for-government)
          - [Consulting Firms](https://www.conexisvmssoftware.com/vms-for-consulting)
- [PRICING](https://www.conexisvmssoftware.com/pricing)
- LEARN 
    - - [All Resources](https://www.conexisvmssoftware.com/vms-vendor-management-system-resources)
          - [VMS Buyer's Guide](https://www.conexisvmssoftware.com/blog/now-updated-free-2026-vms-buyers-guide)
          - [Grow Your Staffing Agency Revenue Guide](https://www.conexisvmssoftware.com/blog/how-to-grow-staffing-agency-revenue-with-vendor-management-system)
          - [VMS Education Center](https://www.conexisvmssoftware.com/vms-education-center)
          - [FAQs](https://www.conexisvmssoftware.com/conexis-vms-faqs)
          - [Blog](https://www.conexisvmssoftware.com/blog)
- COMPANY 
    - - [About Us](https://www.conexisvmssoftware.com/company)
          - [How We Are Leading AI Innovation in VMS](https://www.conexisvmssoftware.com/ai-in-vendor-management-vms-conexis-vms)
          - [News & Events](https://www.conexisvmssoftware.com/en-us/news-events)
          - [Our Commitment to Customer Care](https://www.conexisvmssoftware.com/vms-nps-customer-satisfaction-adoption)
          - [Awards & Recognition](https://www.conexisvmssoftware.com/conexis-vms-awards-and-recognition)
          - [Client Testimonials](https://www.conexisvmssoftware.com/testimonials)
          - [Case Studies](https://www.conexisvmssoftware.com/vms-vendor-management-system-case-studies)
          - [Take an Online 2 Min Tour](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo)
- CONTACT 
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          - [Book Private Consultation](https://www.conexisvmssoftware.com/book-a-consultation)
          - [Book a Demo](https://www.conexisvmssoftware.com/book-a-demo)
          - [Partner](https://www.conexisvmssoftware.com/partner-with-conexis-vms)
- [VMS Education Center](https://www.conexisvmssoftware.com/vms-education-center)
- [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo)
- [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo)

6 January 2025

# How to Build a Winning Business Case for a Vendor Management System

[![Wayne Burgess](https://www.conexisvmssoftware.com/hs-fs/hubfs/Wayne100.png?width=30&height=30&name=Wayne100.png) Wayne Burgess](https://www.conexisvmssoftware.com/blog/author/wayne-burgess)

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Are you looking to transform how you manage your contingent workforce and the vendors they work with? No matter the size of your organization - whether you are a large enterprise or mid-market - A vendor management system (VMS) can make a big difference. In this article, look at the benefits of a VMS and the 4 steps to help you build a winning business case for VMS. 

Lack of visibility into your [contingent workforce management program](https://www.conexisvmssoftware.com/contingent-workforce-vms) and no control over vendor spend can have damaging implications for your business’s bottom line. That’s why many organizations are turning to external talent management technologies.

## What is a Vendor Management System (VMS)?

A VMS is a web and cloud-based application that allows your organization to source, engage and manage its entire non-employee workforce, as well as manage the vendors associated with that process, in one automated solution.

## Benefits of a VMS

By using a VMS your business will have improved visibility into its non-employee workforce, better tracking of vendor performance, reduced costs, more efficient processes, complete consolidation of your vendors in one location and many other benefits.

## How to build a winning business case for a VMS

For organizations still using manual processes or outdated automation tools, building a business case can feel overwhelming at first. It seems a huge task to centralize your entire external workforce management and vendor procurement processes.

The implementation of a vendor management system, however, will bring huge benefits to your business, including cost savings, better vendor choices, improved hiring decisions, increased efficiency and much more. 

In fact, according to figures from *Aberdeen Group Research*, 89 percent of organizations that are considered “best-in-class” in the management of their contingent workforces had implemented VMS technology into their processes.

With these benefits in mind, how do you convince the rest of your organization that they should get behind a centralized non-employee management platform? In this blog, Conexis VMS lists a few important tips that will help you build a successful VMS business case.

### **1 - Assess and Baseline the Current State of your Contingent Workforce**

The first step in building your VMS business case should always start with an assessment of your current non-employee workforce processes and related costs. You need to find out where your organizations pain points are, and uncover all of the costs (including the hidden ones) both real dollars as well as dollars related to wasted time associated with your current processes. Here is a list of the big buckets of costs related to your contingent workforce:

1. The worker pay rates – what he workers get paid by the hour
2. The supplier markups – this includes their profit and statutory costs
3. Headcount of workers – the total number of contractors you have
4. The time spent by each internal department to source and manage your contingent          workers: Talent Acquisition, Procurement, Legal, Finance, Hiring Managers & Approvers
5. The rate of invoicing errors and issues that need to be resolved

### **2 - Understand how VMS Implementation Will Benefit your Business**

The most important aspect of any business case is to clearly define the benefits that your organization will realize once a change is made. With a vendor management system, there’s a huge number of benefits that you can present to your organization’s decision-makers. 

To do this you need to understand how and at what level a VMS will help reduce your contingent workforce costs, as well as all the time needed to manage it. You also need to know what investment you need to make to implement a VMS and what costs will it take to manage it.

Understanding the future state will help you estimate these hard and soft dollar savings. The end result is a financial statement of benefits that the organization should expect to realize over a 5-year period.

A VMS will significantly improve your visibility into your non-employee workforce, and dramatically improve how you manage your vendors. The result will be an automated process that leads to greater cost savings, saved time, improved hiring decisions, the consolidation of vendors, more insightful analytics and much more. 

### **3 - Obtain Buy-in from Key Stakeholders**

You now understand why your current external workforce management strategy is costing your business money, and you know how the implementation of a vendor management system will lead to cost savings, improved efficiencies and better vendor decisions. One thing you don’t yet have, however, is the buy-in of your stakeholders.

Whether you just report to a CEO or you have multiple teams that are part of the decision-making process (such as procurement hiring managers, HR, IT and finance), it’s important that you receive buy-in from every stakeholder involved in non-employee management.

These stakeholders are far more likely to support VMS implementation when they know how it will benefit and improve their current processes.

I would strongly suggest that anyone trying to build such a business case leverage one of our industries consultants to help them. The investment will pay off 10-fold.

### **4 - Finding a VMS Provider **

Last but not least, once you have successfully gained the buy-in from your organization, it’s time to start looking for a VMS provider that you can partner with. You’ll want to make sure the provider is a good fit for your business and the objectives that you want to achieve from your VMS implementation. 

Do you want a provider that is hands-on and can help you every step of the way, or do you want a provider that can deliver a simple-to-use solution that allows you to work independently? Your VMS provider will be an important strategic partner so make sure they have the knowledge and expertise you need for the implementation and any on-going support.

## Additional Resources on Building a Business Case for a VMS

1. Watch our Webinar on "Getting Started with a 1st Gen VMS" with tips on building a business case. Hosted by Wayne Burgess and John Clark, Co-Founders of Conexis VMS. Topics include: Building a Winning VMS Business Case, Avoiding the Pitfalls & Challenges and Tips for Successfully Implementing a VMS.Watch Webinar replay here:  
   [Getting Started with a 1st Gen VMS](https://www.conexisvmssoftware.com/hubfs/Webinar_Top%2015%20Tips_1st%20Gen.mp4).
2. **Download our Free "Ultimate VMS Buyer's Guide"** that provides you with everything you need to know about choosing the right VMS for your company, as well as a checklist of questions to ask VMS Providers: [Send me a copy of The Ultimate VMS Buyer's Guide](https://www.conexisvmssoftware.com/conexis-vms-buyers-guide). 
3. **Schedule a Free No-Obligation "Getting Started" Consultation with Us** - We can give you advice on how to get started: help you assess your current baseline, identify your key challenges, the benefits that a VMS will bring; and discuss how to build a business case for your organization and secure buy-in. Let's schedule a [Free No-Obligation Consultation](https://www.conexisvmssoftware.com/book-a-consultation?hsCtaTracking=838fcdf1-1e6b-4f38-94ca-546b5c3f500a%7Ccea41693-f87e-4c19-802e-c4ed5eadcf73)

[![Everything you need to know about Vendor Management Systems](https://no-cache.hubspot.com/cta/default/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec)

## The Conexis VMS Difference

Conexis VMS is an [award-winning](https://www.conexisvmssoftware.com/conexis-vms-awards-and-recognition) vendor management system built for organizations that want the power of enterprise software without the complexity or cost.

Leveraging the latest technology, Conexis VMS delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our [Company](https://www.conexisvmssoftware.com/company) and what makes [Conexis VMS different](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis).

## Discover the Power of Conexis VMS

Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS:

- [Modern VMS Technology](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - Built on the latest AWS microservices architecture and Open API
- [Fast Implementation](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) - Get up and running in under a month, free setup and training included
- [Fully Branded White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) - Your Logo. Your Domain. Your Branded Communication
- [Flexible Pricing](https://www.conexisvmssoftware.com/pricing) - No setup fees, with free implementation, training and account management
- [Personal Attention](https://www.conexisvmssoftware.com/vms-nps-customer-satisfaction-adoption) - Experienced senior account management from implementation onward

## Switching Your VMS or Just Getting Started?

We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days.

| [![Book a private consultation with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a) | [![Take a self-guided tour of Conexis VMS ](https://no-cache.hubspot.com/cta/default/7617376/6617fad0-9168-4a45-b474-c96a34628641.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/6617fad0-9168-4a45-b474-c96a34628641) | [![Book a Demo with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559) |
| --- | --- | --- |

 

[![What is a VMS | Benefits ](https://no-cache.hubspot.com/cta/default/7617376/fdcaacfe-f6d3-447c-ba77-05e0602f95e1.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/fdcaacfe-f6d3-447c-ba77-05e0602f95e1)   

![Wayne Burgess](https://www.conexisvmssoftware.com/hubfs/Wayne100.png)

#### Wayne Burgess

Wayne Burgess is the Co-Founder of Conexis VMS, a technology company focused on helping organizations get control of their Contingent Workforce.

### Popular posts

![How Do They Do It? How Conexis Delivers Fast VMS Open API Integrations](https://www.conexisvmssoftware.com/hubfs/how%20do%20they%20do%20it-Conexis-VMS-Open%20api_%201200x627-44.jpg)

## [How Do They Do It? How Conexis Delivers Fast VMS Open API Integrations](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast)

[![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) 17 September 2026

![How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-white-label-vms-1200-627-60.jpg)

## [How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms)

[![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) 24 June 2026

![How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-implementation-1200-627-59.jpg)

## [How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months)

[![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) 1 June 2026

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