--- title: "The 4 Types of Vendor Management Systems: Choosing the Right Solution" description: There are different Types of Vendor Management Systems software (VMS); let's look at each and share what to look for when choosing a VMS image: https://lh4.googleusercontent.com/HnpFCvDR8uil6Vs3_Ya2k9QpZGv9X1gVeeOJr-bwwsC2990Ylt_5RYY9GoS9o-wSaSREGu8yAoNT4KzL1_mQTyPHmklw3KdqaquGcZrOZqteJgtdtogbSJPqkZrvUgj7ew --- - [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/) - 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[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 with a VMS | Guide](https://www.conexisvmssoftware.com/what-is-vendor-management) - [Managing Staffing Agencies with a VMS| Guide](https://www.conexisvmssoftware.com/managing-staffing-agencies-with-a-vms-guide) - [WHY CHOOSE CONEXIS VMS](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - SOLUTIONS - - **My Role** - [Procurement](https://www.conexisvmssoftware.com/vms-for-procurement) - [HR & Talent Acquisition](https://www.conexisvmssoftware.com/vms-for-talent-acquisition) - [Contingent Workforce](https://www.conexisvmssoftware.com/vms-for-contingent-workforce-leaders) - - **My Business** - [Staffing Agency](https://www.conexisvmssoftware.com/vms-for-staffing-agencies) - 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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) - [About Conexis VMS (Video)](https://www.conexisvmssoftware.com/watch-why-choose-conexis-vms-2-minute-overview) - 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) 24 February 2026 # The 4 Types of Vendor Management Systems: Choosing the Right Solution [![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) - - - Vendor Management Software is crucial for organizations to strategically and efficiently manage staffing agencies and contingent workforce. With many systems available, how do you choose the right one? This blog will explore what a VMS is, its benefits, and key factors to consider when choosing the right VMS for your organization. ## What is a Vendor Management System for Contingent Workforce? A vendor management system, often referred to as VMS or VMS software, is a software platform that enables your business to acquire and oversee the complete lifecycle of contingent workers and staffing agency services. By consolidating and automating your externally-sourced workforce program into a single platform, a VMS provides functionalities that allow you to engage with staffing agencies, acquire contingent workers, hire permanent employees through staffing agencies, assess vendor performance, track payments, and manage various other processes related to your contingent workforce. A VMS collects and stores all the data necessary to meet your workforce needs and foster more strategic relationships with staffing agencies. ## Types of Vendor Management Systems Organizations frequently depend on external vendors or contract workers to enhance their operations and reduce expenses. A vendor management system (VMS) is a software solution that manages all vendor-related activities, such as initiating contracts, negotiating prices, tracking performance, and handling payments and payroll, all from a single dashboard. This tool is invaluable for vendor managers, HR managers, supply chain managers, and other professionals in similar roles, as it helps them streamline their daily vendor-related tasks. There are four common categories of vendor management systems. It is important that you are familiar with these, so that you know what system your organization needs when you are looking at potential providers.  ### **1 - Comprehensive Vendor Management System** This software acts as the central point for vendor management, enabling you to oversee the entire vendor relationship lifecycle. It aids in vendor identification, procurement, contract negotiation and management, risk evaluation, performance assessments, and vendor payments. This system is most commonly referred to as a Vendor Management System (VMS).  ### **2 - Contract Management System** This is a contract management system that streamlines and optimizes the contract workflows with vendors. It assists in developing, negotiating, signing, managing, and renewing vendor contracts. ### **3 - Third-Party Risk Management System** This system is used primarily for evaluating the risks associated with third-party vendors. It facilitates risk assessment, rates vendors on a predetermined risk scale, and recommends risk mitigation strategies. ### **4 - Procurement Management System** This system is used primarily for manufacturing and production companies that source raw materials from multiple suppliers. A procurement management system supports all procurement-related activities, including sourcing, procurement, supplier management, and payments. ## What advantages do organizations gain from implementing VMS software? By integrating a vendor management system into your contingent workforce program, your business can experience significant benefits, including: - Achieving full transparency of your contingent workforce. - The capability to oversee and evaluate the performance of your staffing vendors. - Enhanced efficiency through streamlined organization and automation. - The ability to accurately classify externally-sourced workers and ensure compliance. - Exerting control over contingent workforce expenditures. - A unified contingent workforce management approach that standardizes rates and vendor interactions across your organization. - Lowering workforce costs. - The integration of staffing agencies into a single centralized platform. ## Top questions to consider when choosing a VMS solution Here are some of the top things to consider if your business is looking for a VMS that will help you better manage your contingent workforce.  ### **1 - How much does a VMS cost?** The majority of vendor management systems are priced based on a percentage of contingent workforce spend. When priced that way, a VMS can have a significant impact on your bottom line. For companies with smaller volume spend, we recommend looking for a solution that charges a [software licence fee](https://blog.conexis.io/choosing-your-vendor-management-software-benefits-of-saas), as this will typically be a more cost-effective option.  ### **2 - What functionalities do you need?** To manage your contingent workforce it’s possible that you may need more complex functionalities, but most organizations (especially those with smaller volumes) can get away with less functionality. In fact, the functionality of most VMS software solutions make it complex, time-consuming and inefficient for companies with smaller volumes of contingent spend. Instead, look for a scaled-back solution with functionalities such as vendor consolidation, process automation, vendor guidelines, program centralization, and vendor performance data. This is likely all the functionality you’ll need for a successful contingent workforce program.  ### **3 - Do you need to manage permanent hiring through staffing agencies in your VMS?** Some vendor management systems only allow you to manage contingent workers, others allow you to manage all externally-sourced workers while others operate as total talent management platforms for your entire workforce. Consider which type of workers you want to manage in the VMS solution you choose.  ### **4 - How long will VMS implementation take?** Implementing any new platform into your business processes can be daunting. The more complex the system, the more daunting the task will be. Before implementation, make sure you properly define the goals you want to achieve within your contingent workforce program and when you want to achieve them. Some VMS implementations may take a reasonably long time, while others are seamless and can be done in a matter of days. Weigh up your company’s objectives and VMS implementation time to find your optimum ROI. ## How do I choose the right Vendor Management System? With so many options in the market, it's important that you choose the Vendor Management System that is right for your company. That's why we created the Ultimate VMS Buyer’s Guide. Download our Free VMS Buyer's Guide [here](https://www.conexisvmssoftware.com/conexis-vms-buyers-guide): [![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) ## 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) | | --- | --- | --- |     [![How to Choose the Best VMS](https://no-cache.hubspot.com/cta/default/7617376/252dc420-e75e-4d77-9b14-414f3794e4c1.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/252dc420-e75e-4d77-9b14-414f3794e4c1) ![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 Open APIs Deliver Fast VMS 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 Open APIs Deliver Fast VMS 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" : "2026-09-03T3:03:46 AM", "datePublished" : "2026-02-24 05:00:00", "description" : "There are different Types of Vendor Management Systems software (VMS); let's look at each and share what to look for when choosing a VMS", "headline" : "The 4 Types of Vendor Management Systems: Choosing the Right Solution", "image" : { "@type" : "ImageObject", "height" : 40, "url" : "https://www.conexisvmssoftware.com/hubfs/conexis-favicon.png", "width" : 40 }, "mainEntityOfPage" : { "@id" : "https://www.conexisvmssoftware.com/blog/types-of-vendor-management-systems-choosing-the-right-solution", "@type" : "WebPage" }, "name" : "The 4 Types of Vendor Management Systems: Choosing the Right Solution", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 73, "url" : "https://www.conexisvmssoftware.com/hubfs/Conexis%20Logo%2001-1.png", "width" : 80 }, "name" : "Conexis" } } ``` ```json { "@context" : "https://schema.org", "@type" : "Organization", "contactPoint" : { "@type" : "ContactPoint", "contactType" : "sales", "telephone" : "+1-647-370-8987" }, "name" : "Conexis", "url" : "https://www.conexisvmssoftware.com/" } ```