Managing multiple warehouses can be challenging. They may all have their own constantly changing, and growing, staffing needs. In this article, we share the benefits of using a Vendor Management System (VMS) to automate the management of contingent workers, and how to choose the best VMS for your organization.
If you are managing temporary workers in your warehouse using manual methods like spreadsheets, share-point sites or perhaps an in-house database, you may be looking for an easier way to automate these processes.
A Vendor Management System (VMS) is a cloud-based software platform that helps organizations source, manage, pay, and analyze contingent workers and staffing vendors in one centralized system. A VMS provides real-time visibility into workforce spend, compliance, supplier performance, and labor costs while automating manual processes across the contingent workforce lifecycle.
Organizations use a Vendor Management System to manage non-employee workers, including contractors, temporary staff, consultants, and shift-based labor. By acting as the system of record, a VMS replaces spreadsheets, email chains, and disconnected tools with structured workflows that improve efficiency, reduce risk, and control costs.
Technology is the greatest opportunity to advance an organization’s contingent workforce program. The use of a VMS can bring businesses greater intelligence, insights and control, while also improving the efficiency of a company’s internal team.
By automating the processes associated with contingent workforce management, businesses are able to significantly save employee time, which in turn allows them to focus on core competencies that drive business growth.
Here are just a few of the top contingent workforce program processes that are improved through VMS automation:
A vendor management system allows buyers to create, approve and post requisitions to staffing agencies. Once a staffing agency submits candidates and the business screens and accepts, a VMS will automate the completion of contracts with POs, business units, cost centers and GL codes.
A VMS enables and monitors the completion of all onboarding steps, such as background checks, any buyer training, issuance and technology access, as well as automated off-boarding when the contingent workers assignment ends.
A vendor management system fully automates all contingent worker time cards and expense submissions. Contingent workers simply go online and enter their time cards or expenses, allowing hiring managers to review and either accept or reject with one click of a button.
A VMS will run invoicing on approved time and expense submissions, with suppliers able to access their invoices and time card details for their own financial requirements.
Want to know how your contingent workforce management program is performing, so that you can make changes that improve ROI in the future? Vendor management systems have a set of standard reports and custom reporting that give businesses insight and control over areas of the program, such as spend, time-to-fill, turnover and cost savings.
When looking for a VMS for your warehousing environment, it’s important to look for some specific functionality to improve how you manage both temp workers and vendors. Here are some of the most important functionalities to look for:
Health and safety - It is critical for warehouse and operations professionals to be made aware of, and be able to track, any safety incidents that have occurred within their facilities. A VMS that is functional for warehouses should allow users to record and report on these incidents.
Volume handling - A VMS for warehousing environments needs to be able to handle high volume requests for temporary labor requirements. Often hundreds at a time. On the flip side, the system must be able to allow staffing agencies to submit hundreds of candidates on one submission who can quickly be onboarded to start on-site often within hours, or at the very least the next day.
Shifts - Work shifts that differ across workers, sites and jurisdictions with different rates for different shifts, such as OT and DT, is critical.
Timeclock integrations - Most warehouses today use some form of automated click in and clock out system. A vendor management system should be able to take in the data from that timeclock system, and convert it into worker time cards in the system that then can be converted into supplier invoices.
Multi-tenant - A VMS should allow organizations the flexibility to assign locations to specific users.
Supplier invoicing and payment - One of the most frustrating and inefficient temp processes is invoicing. Every supplier has a different process and they are constantly sending in invoices with errors or needing corrections. A VMS should automate the supplier invoicing process in a closed-loop environment to prevent the risk of invoice errors.
Contract management - Your staffing agency agreements, statement of works (SOW’s) and worker agreements can become overwhelming to manage. The VMS you choose should be able to effectively manage the various contracts used in your warehouse.
Worker onboarding - Ensuring that you complete worker background checks and other onboarding steps is an important process that mitigates the risk to your organization when bringing on temporary workers. A VMS should enable and track this process right up to the worker being on site.
Budget management - Warehouse managers must be able to track forecasted and used temp spend, it is important that the VMS of your choice has this functionality.
Permanent and contract hires - Being able to post permanent hire requests, as well as just temps, is an important function for warehouse managers who don’t want to have multiple systems or processes for their staffing agencies for both full-time and temporary work.
Rate cards - Many warehouse managers have pre-negotiated rates with their agencies. A VMS should allow organizations to build their rate cards into the system. This will ensure all contracts are in alignment with pre-negotiated rates.
You should also make sure that any VMS being used for warehousing environments has reporting and supplier onboarding and management functionality.
In today’s world any software or systems you use must have the latest security protocols. Not only that, but the organization providing these systems needs to adhere to the latest privacy and information protection legislation such as HIPAA, PIPED and GDPR.
To manage a successful business, you need to be fully prepared for the requirement to grow or reduce your workforce at a moment’s notice. This is more true for warehouses where seasonal demand can have a dramatic influence on your workforce requirements.
To make sure your warehouse is able to scale seamlessly, it’s crucial you choose a VMS system that is able to scale with your business. The last thing you want to do is choose a system that reaches its limits to support you while you are still growing.
Vendor management systems vary wildly in pricing rates and approaches. The latest pricing model is a license-based monthly fee. VMS systems could be based on the number of users, the amount of contingent spend being processed through the system or the amount of records. Watch out for VMS providers who charge ridiculously high implementation fees. The trend is to no longer pay implementation fees for out of the box set ups.
VMS For Manufacturing: Seamlessly Manage your Manufacturing Extended Workforce
How a VMS Helps Navigate the Complexities of a Manufacturing Workforce
Light Industrial Staffing: Now is the Time to Better Manage your Temp Workers with a VMS
Light Industrial Staffing Agencies: How to Find the Right Vendor Management System
Warehouse: How to Manage Contingent Workers & Staffing Agencies
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.
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
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!