If you're still managing your contingent workforce using spreadsheets and email threads, you're not alone. Many mid-sized companies continue to rely on manual processes simply because “it’s how it’s always been done.” But here’s the reality: spreadsheets could be quietly costing your company millions of dollars each year.
In this article, we’ll uncover the hidden costs of managing contingent labor manually and show how a modern vendor management system (VMS) can dramatically reduce spend, boost compliance, and save your internal teams hours every week
1 - Human Error and Inaccurate Data
Manual data entry in spreadsheets leaves the door wide open for errors: mis-entered hours, incorrect rates, and duplicate payments are all too common.
How a VMS Helps:
A VMS automates the entire contingent worker process, including time tracking, validating rates on invoices, and flagging discrepancies in real time - all preventing errors before they happen. One of the most frustrating time wasters is chasing suppliers on invoice errors. Quite often they go unnoticed meaning money lost forever.
2 - Rogue Markups and Rate Inconsistency
Without centralized oversight, staffing agencies can apply inconsistent markups or charge inflated rates. When rate benchmarking is manual - or nonexistent - you’re likely paying more than you should.
How a VMS Helps:
A VMS offers centralized rate cards and automated vendor comparisons, providing visibility into rate disparities and empowering procurement to negotiate more favorable terms.
3 - Lost Time and Productivity
Spreadsheets don’t just cost you money - they burn internal resources. HR, procurement, and finance teams spend dozens of hours each month chasing down timesheets, reconciling invoices, and managing back-and-forth emails.
How a VMS Helps:
With automated workflows and centralized dashboards, a VMS reduces admin time, freeing up your teams to focus on strategy, not spreadsheets.
4 - Compliance Risks and Audit Failures
Managing worker classification, contract terms, and documentation in spreadsheets is a compliance minefield. One missed detail can result in failed audits, regulatory fines, or worse - reputational damage.
How a VMS Helps:
A VMS securely stores all contracts, agreements, and worker data in one searchable, auditable location - ensuring you’re always compliance-ready.
Final Thoughts - It's Time to Ditch the Spreadsheet
Managing your contingent workforce through spreadsheets may seem like a simple solution, but the hidden costs add up fast. From overpayments and rogue vendor markups to hours of wasted admin time and compliance risks, spreadsheets create more problems than they solve.
Instead, organizations (yes, even those with smaller contingent workforce budgets) should use a VMS to automate and consolidate their contingent workforce program and the staffing agency management process.
A vendor management system acts as a mechanism for your business to consolidate all processes and data associated with the procurement and management of your contingent workforce and the staffing vendors you partner with.
By consolidating your entire contingent workforce program in one centralized location, your company will have clear visibility and control over vendor relationships, vendor analytics, pay rates and much more.
Why 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:
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs
- 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
Discover the Power of 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.
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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