16 February 2023

Why 2023 is the Year to Re-Evaluate Your VMS System

Wayne Burgess
Wayne Burgess

Before the advent of the vendor management system, contingent workforce programs were built on advanced spreadsheets or SQL databases and managed manually by an organization's HR or procurement team.  

This management method was ineffective. It left organizations with virtually zero visibility into the performance of their contingent workforce program, and no centralization or standardized practices of how staffing agencies or contingent workers should be engaged by hiring managers.

The result? Below-par workforce quality and high contingent workforce spend. 

Thankfully, the advent of contingent workforce technology changed that. The first VMS system was developed in the 90s, and evolution in technology since then has helped ensure organizations can better manage their contingent workforce program and access benefits such as:

  • Improved workforce visibility 
  • Automate workforce management
  • Reduce costs
  • Improve workforce quality 

It’s near-impossible to consider managing a non-employee program without the implementation of such technology today. But what if we told you that the increasing complexity of many of the traditional vendor management systems is re-introducing the contingent workforce management challenges of the past?

In this blog we’re going to take a look at why first-gen VMS providers have become more complex to use, and how organizations can benefit from re-evaluating their vendor management system and transitioning to a VMS that’s easy to use and built for modern businesses.

VMS Buyer's Guide

Why traditional VMS technology is no longer up to scratch

The vendor management system is a critical component of how organizations manage their contingent workforce. In fact, the benefits of a VMS include increasing efficiencies, standardizing processes, analyzing staffing agency performance and centralizing the program in one single pane of glass.

All these things help reduce costs and improve workforce quality.

Yet there’s no denying that over the years some of the traditional, first-gen vendor management systems have come full circle. They are now, in some cases, even more difficult to use than the spreadsheets and SQL databases that the contingent workforce used to be managed on.

That’s because over the past 20 or so years, innovation and new functionality were driven by the users of VMS technology. 

As the years went by, this native functionality caused many of the old vendor management systems to become heavy and sluggish. These technologies are now incredibly complex and time-consuming to use for most teams, minimizing the ROI they receive from their contingent workforce. 

Not only that, but many VMS providers advanced at a slower pace than modern technology. A number of vendor management systems are still built and maintained on older architecture that needs constant upgrading and maintenance, causing even more headaches for the end user. 

These difficult-to-use interfaces and complex functionalities are contributing to rogue spending, slow workflows and poor management methods that reduce the effectiveness of a company’s contingent workforce program. 

Even worse, when a vendor management system isn’t working for an organization, employees will begin to look around these challenges. This often leads to work being done outside the system, reducing visibility into the contingent workforce program. 

Businesses should instead look to implement an easier VMS system

Are you responsible for managing your organization’s contingent workforce program, and feel like your vendor management system is slowing you down? 

If so, 2023 might be the year to re-evaluate your VMS system.

If you find that your vendor management system takes a long time to load pages, doesn’t work well with your non-employee management processes or producing reports is a time-consuming process, then it’s likely there’s a better option out there for you. 

Today, there is a range of modern VMS systems that are simple, clean, adaptable and configurable to each unique user. Dashboards can be changed, systems can be integrated and the complex functionalities of traditional vendor management systems are avoided.

These systems are easy to use and designed specifically for the workflows and preferences of your business. This dramatically improves vendor management system buy-in from your team, ensuring compliance across your contingent workforce program. 

Are you interested in re-evaluating your VMS system, moving to a technology that is simpler, faster and easier to use? Book a demo with Conexis VMS today. We’ve designed an innovative vendor management system that is built on the latest technology, with the user in mind. Our team of contingent workforce experts would love to answer any questions that you may have.

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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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