An increasing number of employers now recognize the significance of achieving visibility and control over their contingent workforce. When executed effectively, businesses can enhance workforce quality, acquire talent more swiftly, and cut costs. To achieve this, many are adopting Vendor Management Software to more effectively oversee, manage, and assess the staffing agencies they employ to source these workers.
In this article, we will take a look at what a Vendor Management System is, and what are the "Bells & Whistles" functionality that you actually need.
What is a Vendor Management System?
A VMS system is a platform that acts as a system of record for your entire staffing agency process. A vendor management system automates and centralizes all staffing vendor processes from hiring and onboarding workers, tracking payments, measuring staffing agency performance and so much more.
As a result of using a vendor management system, your organization gains complete visibility and control over its staffing agencies and externally-sourced workforce.
These insights improve your future contingent workforce decision-making, ensuring that you access top-quality workers to meet your workforce goals, save money, improve internal processes, and speed up the time-to-hire process.
What are the features of a VMS?
According to an article from Staffing Industry Analysts (SIA), the functionality of the typical vendor management system can be broken down into three basic categories:
#1 - Traditional Contingent Process Management
- Requisitioning / sourcing
- Assignment management
- Contract creation
- Onboarding
- Extensions
- Rate changes
- Offboarding
- Time and expenses
- Invoicing and payment
#2 - SOW Process Management
- RFI/RFP
- Bidding
- Agreement creation / management / close-out
- Assignment management
- Onboarding
- Offboarding
- Payment requests, time and expenses
- Invoicing
#3 - Additional Features
- Reporting
- Tactical
- Strategic
- Market intelligence
- Freelancer / independent contractor management
- Integrations
- Client systems
- Supplier systems
- Mobile applications
- Language and other localizations
- Infrastructure
- Supplier management
- Supplier registration
- Evaluations
Many VMS providers have features that you’ll never use
In the software world, there is a common issue known as “feature creep”. Shopify defines feature creep as:
“When you add excessive features to a product that make it too complicated or difficult to use. Any additional features that you introduce into your product add to the complexity of your design. In turn, this can diminish the usability of your product.”
Feature creep occurs when extra features are added to a product. These features go beyond the basic function of the product, resulting in the design of a product becoming a feature-led experience rather than a user-centric one.
While these features are useful for some companies, they aren’t for most. Instead, having bells and whistles that you never use can lead to a frustrating experience that reduces the ROI your business realizes from using the product.
This is particularly true when it comes to vendor management systems.
Many of the Legacy VMS systems are complex. They have more functionalities than most clients will ever need, let alone the businesses which only have smaller or mid-size contingent workforce budgets.
As a result of these complex functionalities, implementation takes longer, ease-of-use is dramatically reduced and businesses that don’t need these features simply waste time and money navigating a technology solution that’s way too powerful for their requirements.
What are the VMS features you actually need?
The six key functionalities you need to manage your contingent workforce and staffing agencies include:
- Worker hiring and onboarding
- The consolidation of staffing agencies into one centralized platform
- The automation of vendor management processes
- Time and Expense Management Invoicing
- Vendor guidelines so all hiring managers are following standardized rules
- Scalability, so your tech can grow with the demands of your business
Need Help Choosing the Right VMS?
Whether you are in the market for a new VMS Solution, or just getting started, we are here to help. Download a free copy of our 2024 VMS Buyers Guide to help you choose the right VMS for your organization. This helpful guide includes a checklist of questions to ask VMS providers when you are making your selection.
Additional Reading on Managing Staffing Agencies
Managing Staffing Agencies with a VMS | Everything You Need to Know
- The Benefits of a Vendor Management System
- Staffing Agency Software: 4 Things You Need to Know
- How to Choose the Right Staffing Agency for your Contingent Workforce Program
- 5 Ways a VMS Reduces Staffing Costs with Smarter Rate Card Management
- How a VMS helps Manage Staffing Vendors more Effectively
- How a VMS helps Measure Staffing Agency Performance
- 4 Key Benefits of Managing Staffing Agencies with a VMS
- The 8 Key Metrics to Measure Staffing Agency Performance
- 5 Best Practices to Manage your Vendors and Increase ROI
- 5 Reasons to Work with a Staffing Agency for your Contingent Workforce
- The Benefits of Partnering with a Light Industrial Staffing Agency
- How Does Staffing Agency Vendor Management Software Work?
- Managing Staffing Agencies: To Tender or Not to Tender
- 3 Best Practices for Managing Staffing Agencies
- What Key VMS Features do you really Need to Manage a Staffing Agency?
- Is your Staffing Agency Putting your Company at Risk?
About Conexis VMS
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis 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 and why organizations Choose Conexis VMS.
Why Leading Companies Choose Conexis VMS
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
- Our Advanced Technology: We have the most modern and advanced VMS tech stack available today starting with the latest codebase and extending to our lightning-fast AWS microservice
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs and no set-up fees
- White-Label Ready: Customize the platform with your brand
- Real-Time Insights: Make faster decisions with built-in analytics
- Audit-Ready Compliance: Store contracts, worker data, and rates in one secure hub
- Open APIs - Effortless Integrations: Connect Conexis VMS to your ATS, HRIS, Finance, or BI systems in record time. Enjoy seamless data flow and instant visibility across all your tools
Looking to Switch Your VMS or Just Getting Started?
Whether you are looking to switch your VMS, or just getting started, we are here to help. Contact Us for a Free No-Obligation Consultation, See how Easy Conexis is to use by taking a quick 2 minute Self-Guided Online Demo, or Book a Personal Demo Today!
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