Managing a warehouse can be challenging. Your responsibility is to deliver physical products to your customers quickly and smoothly, which is no simple feat given the numerous moving components and the seasonal demand that influences your warehouse management. When it comes to warehouse software to manage contingent labor, this article looks at how a vendor management system can benefit your warehouse management.
The use of temporary staffing can help your warehouse meet its goals, but there are many challenges associated with managing a contingent workforce (and the staffing vendors you use to source temp workers). Let's look at how you can manage your contingent labor more successfully through a vendor management system (VMS).
As a business oriented towards light industry, your warehouse prioritizes the customer. Customer experience (CX) is vital to your business's success, and effectively managing your warehouse is essential for creating an exceptional CX..
Balancing costs with meeting customer expectations is the key to boosting profits.
Labor is the largest operating expensive in a warehouse, and uses up anywhere from 50 to 70 percent of your budget. That’s why the use of temporary labor is an important aspect of not only managing your overall costs, but also meeting customer demand.
Placing temporary workers in your warehouse can bring you a wide range of benefits - all of which help your organization to achieve its business goals.
Here are some of the top reasons your warehouse will benefit from the use of temp labor.
Hiring full-time employees when you don’t need them is a waste of money and will cut into your profits, but, at the same time, not having enough workers when you need them can seriously damage your customer experience. Using temp labor gives you the workforce flexibility you need to adapt to seasonal demands and other business fluctuations experienced throughout the year. You can access the headcount you need, only when you need it.
Recruiting full-time workers takes time and money, and in an industry where there’s a notorious high turnover rate this process can be even more costly. The use of temp labor gives you access to experienced candidates without the costly and time-consuming recruiting process involved with full-time hiring.
Need a worker with qualifications or experience in the operation of forklifts, shipping and receiving, packing, loading and unloading or any other skill? Staffing agencies have a large database of workers who are qualified in the exact role you are looking to fulfill.
The other big benefit to warehouse managers is turnover reduction. Some warehouse experience over 80 percent turnover which creates massive customer satisfaction issues not to mention unnecessary costs related to training and inefficiencies. The placement of successful temp workers can dramatically reduce turnover in your warehouse.
As we mentioned before, the use of temporary labor is a great way to manage both warehouse costs and customer expectations - ensuring your warehouse remains highly profitable at all times, no matter how much demand you are experiencing.
This, however, is only the case if you are properly managing your temporary workers and the vendors you use to source them.
All too often we find that warehouses are managing their temporary worker using manual and time-consuming Excel spreadsheets, in-house databases, and share-point sites. Simply put, this is an ineffective way to manage your temporary workforce.
Manual processes are time-consuming, inefficient, often lead to human error and don’t create a centralized place to manage temp workers or consolidate your vendors. This results in a lack of visibility and control over how much you are spending on temporary workers and the vendors that you use to source them. On top of that, inefficient management methods leave you with no insightful data on the overall performance of your contingent workforce management program.
Without addressing these challenges, your warehouse is sure to be overspending on temporary workers and making poor staffing vendor choices.
A Vendor Management System (VMS) offers a single, automated solution for managing every aspect of your contingent workforce. Below are the key ways a VMS helps warehouses streamline operations - and how Conexis VMS takes each one further.
Reducing No-Shows and Turnover - Compliance - Visibility - Cost Savings
A VMS brings all staffing vendors, contracts, and worker data into one digital platform. This eliminates manual spreadsheets and ensures that all contingent labor activity - from requisitions to placements - is visible in real time.
Why Conexis VMS: Conexis consolidates all your staffing vendors into a single, easy-to-navigate system. You’ll gain a unified view of worker assignments, rates, and performance metrics across every warehouse site. With built-in analytics, you can compare vendor performance and negotiate smarter contracts, saving both time and money.
Manual time sheets are inefficient and prone to error. A VMS automates time and attendance tracking, ensuring accurate data collection and seamless integration with payroll and billing systems.
Why Conexis VMS: Conexis not only integrates with your time clock system, but we can also supply the system. Our system automatically captures attendance and shift data, giving you real-time visibility into workforce performance.
A VMS provides real-time dashboards that show current headcount, vendor usage, spend, and worker performance. This level of visibility helps warehouse leaders make faster, data-backed staffing decisions.
Why Conexis VMS: With Conexis, warehouse managers gain instant access to workforce analytics across multiple locations. View metrics such as cost per hour, turnover rates, and fill times — all from one intuitive dashboard. Our customizable reports make it easy to demonstrate cost savings and compliance for audits.
Managing compliance for dozens or hundreds of temporary workers can be complex. A VMS centralizes contracts, worker credentials, and documentation, ensuring you meet labor laws and audit requirements.
Why Conexis VMS: Conexis keeps all documentation - including contracts, rate cards, and worker certifications - stored in one secure, cloud-based hub. You can track compliance status at a glance and set alerts for expiring documents. With audit-ready transparency, you’ll always stay compliant with labor standards and vendor agreements.
A VMS allows you to evaluate vendor performance based on fill rates, worker quality, and turnover metrics. This empowers you to make data-driven vendor decisions that improve efficiency and reduce costs.
Why Conexis VMS: Conexis automatically tracks and scores vendor performance, giving you clear insight into which agencies deliver the best results. You can easily consolidate vendors, reward top performers, and phase out underperforming suppliers. The result: stronger partnerships and a more reliable workforce.
Through automation and data-driven insights, a VMS helps identify hidden costs, prevent overbilling, and optimize labor spend.
Why Conexis VMS:
Conexis VMS provides detailed cost breakdowns by department, shift, and vendor. You’ll see exactly where your budget is going - and where savings opportunities exist. With real-time spend visibility.
A vendor management system is a cloud-based software solution that acts as a mechanism for your warehouse to manage every aspect of your temporary workforce. By automating each process and storing data in a centralized location, a VMS will give your warehouse complete visibility into the performance of your temporary workforce management program - with detailed insights into both temp workers and staffing vendors.
Through the use of a VMS solution, your warehouse will be able to use insightful data to make better staffing agency decisions, consolidate vendors into one centralized location for easy management, improve process efficiencies by automating key steps and save money through better hiring decisions.
Conexis VMS is purpose-built for companies with complex, shift-based operations. More than 60% of users are in manufacturing and light industrial roles, meaning Conexis VMS understands your operational needs.
Ease of Configuration: Conexis VMS adapts to your existing workflows, shift models, and supplier network—without long or complex implementations.
Real-Time Visibility: Every facility, every role, every worker - all visible in one dashboard.
Automation Built for Scale: From requisition to invoicing, Conexis removes manual steps, freeing your team to focus on strategic workforce planning.
Secure, Compliant, and Auditable: Built-in compliance tools, automated credential tracking, and identity verification ensure every worker meets your standards.
Advanced AI Driven Forecasting: AI-driven analytics help anticipate demand, ensuring the right number of qualified workers are available when and where you need them.
Designed for Manufacturing and Logistics: Conexis supports shift-based work, variable pay structures, and multi-site coordination - critical for fast-moving, high-volume environments.
Read more at Conexis VMS for Manufacturing and Conexis VMS for Logistics
Before implementing a system, understand your organization’s unique labor challenges. Download our Free VMS Buyer’s Guide to learn how to evaluate, compare, and choose the right solution for your operations.
Conexis is an award-winning Vendor Management System built for companies 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.
Whether you are looking to Switch your VMS, or just Getting Started, we are here to help.
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👉 VMS for Warehouse, Logistics & Distribution | 👉 VMS for Light Industrial & Manufacturing