--- title: How a Vendor Management System (VMS) Lowers Contingent Workforce Cost description: Looking to lower contingent workforce cost? Here are seven ways Vendor Management System software lowers contingent workforce costs, improving ROI. image: https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/COST%20IMAGES/cost%201200x627%20under%20150%20%20optimized/cost-saving-magnifying-glass-1200-627-44.jpg --- - [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) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-FINAL-1.svg) ![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) - VMS 101 - - [What is a VMS?](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms) - 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[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 - - **My Role** - 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[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 - - [Contact Us](https://www.conexisvmssoftware.com/contact) - [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) 3 January 2026 # How a Vendor Management System (VMS) Lowers Contingent Workforce Cost [![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) - - - The dynamic nature of today's business environment necessitates flexible workforce solutions. One such solution is  the use of the contingent workforce, an external labor force comprising temporary employees, consultants, freelancers, and independent contractors. Although this employment model offers great advantages such as increased agility and access to niche skills, it presents unique management challenges. Addressing these challenges and reducing contingent workforce costs can be effectively achieved through [Vendor Management System (VMS) software](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms). ## 7 Ways a VMS Reduces Contingent Workforce Cost ### 1. Standardizing Rates and Reducing Overpayment By offering a centralized platform for contingent workforce management, a VMS enables organizations to standardize worker and supplier bill rates across different workers, roles, and vendors. Without this standardization, businesses may overpay for contingent labor, resulting in higher workforce costs. A VMS can eliminate this by benchmarking rates, ensuring competitive pricing, and preventing overpayment. ### 2. Leveraging Competitive Bidding Most Vendor Management Systems come with a built-in feature for competitive bidding. This means businesses can invite multiple vendors to bid on an open job, ensuring they secure the most cost-effective result. The system can also track the performance and cost-effectiveness of each vendor, enabling businesses to make data-driven decisions when selecting vendors in the future. ### 3. Mitigating Compliance Risks Non-compliance with labor laws and regulations can result in financial penalties, negatively affecting an organization's bottom line. A VMS can [minimize this risk](https://www.conexisvmssoftware.com/vendor-management-system-risk-reduction) by automating compliance processes, from background checks and contract enforcement to labor law adherence. By mitigating these risks, a VMS can help organizations avoid costly fines and reputational damage. ### 4. Streamlining Procurement and Management of Contingent Labor A key feature of a VMS is its ability to streamline the procurement and management of contingent labor. By offering a centralized system, organizations can eliminate the administrative burden associated with sourcing, hiring, and managing external staff, subsequently lowering overhead costs. A VMS automates these processes, ensuring compliance with company policies, minimizing manual errors, and freeing up time for HR and procurement teams to focus on strategic initiatives. ### 5. Enhancing Visibility and Control Without visibility into their contingent workforce, businesses risk overspending. A VMS offers robust tracking and reporting features that provide insights into contingent labor usage, performance, and costs. Companies can assess which departments are utilizing contingent labor, how long these workers are retained, and how their performance compares with internal employees. These insights can inform workforce strategies and prevent over-reliance on contingent labor, thereby minimizing costs. ### 6. Enhancing Vendor Relationship Management A VMS improves relationships with vendors by streamlining communication and providing performance feedback. This can lead to more favorable negotiation terms, and volume rebates, thus reducing costs. Furthermore, a healthy vendor relationship can result in better service quality, reliability, and efficiency – factors that indirectly contribute to cost reduction by preventing project delays and ensuring high-quality results. ### 7. Fostering Strategic Workforce Planning The predictive analytics features of a VMS can forecast future workforce needs based on historical data, helping businesses plan their workforce strategies more effectively. This can prevent over-hiring or under-hiring of contingent labor, ensuring organizations have the right amount of labor at the right time, reducing both overstaffing and opportunity costs. ## Final Thoughts Vendor Management System software offers a myriad of advantages for managing contingent labor. It streamlines procurement, enhances visibility, standardizes rates, mitigates compliance risks, and fosters strategic workforce planning. These capabilities make a VMS an indispensable tool for organizations looking to optimize their contingent workforce costs in today's dynamic business environment. By leveraging a VMS, organizations can ensure they reap the benefits of contingent labor.  ## Learn more about the Benefits of a VMS Download a copy of our free [VMS Buyers Guide](https://www.conexisvmssoftware.com/conexis-vms-buyers-guide) - it includes everything to know about a VMS and a checklist of all the questions you should ask a VMS provider; **including the Top 10 Pricing questions.** [![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) ## Additional Reading [Everything You Need to Know about VMS Cost Savings | Guide](https://www.conexisvmssoftware.com/vendor-management-system-vms-cost-savings-) ## Conexis VMS Case Study [Case Study: How a Manufacturer Cut Costs by 27% and No Shows by 80% with Conexis VMS](https://www.conexisvmssoftware.com/blog/case-study-vms-manufacturing-cost-reduction) [![Read how Conexis VMS helped a Manufacturer Reduce Costs in this Case Study](https://no-cache.hubspot.com/cta/default/7617376/5cbe349c-fdb3-4d69-9ab8-3a02ba973811.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/5cbe349c-fdb3-4d69-9ab8-3a02ba973811) ## 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) | | --- | --- | --- |   [![VMS Cost Savings & ROI](https://no-cache.hubspot.com/cta/default/7617376/7964de58-3aba-4a2c-a00e-57dfcef644a4.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/7964de58-3aba-4a2c-a00e-57dfcef644a4)     ![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 ### Subscribe to the Conexis Monthly Newsletter ![Conexis Logo - White](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square-White-V2.svg "Conexis Logo - White") [![Conexis VMS Reviews](https://www.conexisvmssoftware.com/hubfs/www.conexisvmssoftware.png)](https://sourceforge.net/software/product/Conexis-VMS/) - [VMS BENEFITS](https://www.conexisvmssoftware.com/benefits-of-vendor-management-system) - [PRICING](https://www.conexisvmssoftware.com/pricing) - [COMPANY](https://www.conexisvmssoftware.com/company) - [CONTACT](https://www.conexisvmssoftware.com/contact) - [CONEXIS VMS](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - [LEARN](https://www.conexisvmssoftware.com/vms-vendor-management-system-resources) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**USA** 350 S NW Highway, Suite 300 Park Ridge, IL 60068 ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**Canada** 100 King Street West, Suite 5600 Toronto, ON, M5X 1C9 ![phone-icon](https://www.conexisvmssoftware.com/hubfs/2021/Images/icon-phone.svg)[(312) 776-2006](tel:13127762006) ![SIA\_Corporate Member Logo](https://www.conexisvmssoftware.com/hs-fs/hubfs/SIA_CM_Member_2018%20copy.jpg?width=300&height=74&name=SIA_CM_Member_2018%20copy.jpg)   Copyright © 2026 Conexis VMS - All Rights Reserved. | [Privacy Policy](https://www.conexisvmssoftware.com/privacy-policy) ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Wayne Burgess" }, "dateModified" : "2026-08-01T5:26:49 PM", "datePublished" : "2026-01-03 05:00:00", "description" : "Looking to lower contingent workforce cost? 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