--- title: What is a Vendor Management System (VMS)? description: What is a vendor management system? Let's look at the benefits and how a VMS Works. image: https://www.conexisvmssoftware.com/hubfs/The%20Benefits%20of%20a%20vendor%20management%20in%20staffing%20contingent%20workers.101.1.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) - [VMS Benefits](https://www.conexisvmssoftware.com/benefits-of-vendor-management-system) - [How to Choose the Best VMS](https://www.conexisvmssoftware.com/how-to-choose-the-best-vendor-management-system-vms) - [Getting Started with Your 1st VMS](https://www.conexisvmssoftware.com/conexis-easy-start) - [Changing Your VMS Provider](https://www.conexisvmssoftware.com/how-to-switch-vendor-management-system-vms) - [Modern vs Legacy VMS](https://www.conexisvmssoftware.com/legacy-vs-modern-vms) - [What is a White-Label VMS?](https://www.conexisvmssoftware.com/white-label-vms) - [Mid-Market VMS](https://www.conexisvmssoftware.com/vendor-management-system-vms-for-mid-market-contingent-workforce) - [VMS 101: How a VMS Reduces Costs](https://www.conexisvmssoftware.com/vendor-management-system-vms-cost-savings-) - [VMS 101: How a VMS Reduces Risk](https://www.conexisvmssoftware.com/vendor-management-system-risk-reduction) - [VMS 101: How a VMS Increases Workforce Visibility](https://www.conexisvmssoftware.com/contingent-workforce-visibility-vms) - [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** - [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) - [MSP](https://www.conexisvmssoftware.com/vms-for-msp-managed-service-provider) - [Staffing Agency](https://www.conexisvmssoftware.com/vms-for-staffing-agencies) - [Mid-Market Programs](https://www.conexisvmssoftware.com/vendor-management-system-vms-for-mid-market-contingent-workforce) - - **My Industry** - [Manufacturing](https://www.conexisvmssoftware.com/vms-for-manufacturing) - [Warehousing, Distribution and Logistics](https://www.conexisvmssoftware.com/vms-for-warehouse-logistics) - [Healthcare](https://www.conexisvmssoftware.com/vms-for-healthcare) - [Education](https://www.conexisvmssoftware.com/education-behavioral-health-staffing-vms) - [Government](https://www.conexisvmssoftware.com/vms-for-government) - [Consulting Firms](https://www.conexisvmssoftware.com/vms-for-consulting) - [PRICING](https://www.conexisvmssoftware.com/pricing) - LEARN - - [All Resources](https://www.conexisvmssoftware.com/vms-vendor-management-system-resources) - [VMS Buyer's Guide](https://www.conexisvmssoftware.com/blog/now-updated-free-2026-vms-buyers-guide) - 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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) 6 May 2022 # What is a Vendor Management System (VMS)? [![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) - - - With an increasing number of organizations now relying heavily on contingent workers, many businesses are actively looking at how they can better manage their contingent workforce management programs. In this article, we take a look at everything you need to know about vendor management systems, including what they are, why they are important and the benefits they bring to your organization's contingent workforce program. ## What is a Vendor Management System? A [vendor management system](https://conexis.io/how-it-works/) is a web or cloud-based application that allows an organization to securely manage, and consolidate, staffing vendor services on a temporary, contract or permanent basis all on one centralized platform. By centralizing and automating the complex challenges that surround managing staffing vendors, businesses can gain clear visibility into their staffing agency workforce, leading to a wide range of both soft and hard savings.  A VMS allows you to manage the entire vendor process in one central location, with the ability to automate each step of the staffing agency lifecycle - from engaging a vendor, sourcing talented contingent workers, onboarding, time entry, approval and invoicing. A cloud vendor management system offers you complete accessibility, from any device with an internet connection - no matter where in the world you are currently located.  ## Why a Vendor Management System is so important Contingent workforce management programs are notoriously difficult to set up. That's because they are incredibly time-consuming and complex to set up, and this is made almost impossible without the right technology in place.  The main challenge often comes for organizations with smaller contingent workforce budgets, who are typically using [manual spreadsheets](https://blog.conexis.io/5-dangers-of-using-manual-spreadsheets-to-manage-staffing-vendors), in-house databases, or SharePoint-like websites to manage their staffing vendors.  These manual, time-consuming, and error-prone methods of managing contingent workers and staffing agencies lead to fragmented processes across your organization, a lack of visibility into non-employee and vendor performance as well as [rogue spending](https://www.conexisvmssoftware.com/blog/what-is-rogue-spend-in-non-employee-workforce-management) that impacts overall business profitability.  Instead, your business can realize huge ROI by investing in a [vendor management system (VMS)](https://conexis.io/vms-benefits/).  Are you looking to improve how you manage your non-employee workforce and the staffing agencies you use to source those workers? In this blog we’re going to dive into what a VMS actually is, some of the key features these solutions have and how exactly they benefit your contingent workforce management program.  ## Benefits of a Vendor Management System Now you know exactly what a vendor management system is and some of the key functionalities you should look for in a VMS, here are some of the ways that your business can drive ROI by using one.  ### Increased visibility You can’t manage what you can’t see, and that’s the main challenge with managing your staffing agencies on manual spreadsheets. A VMS consolidates your entire workforce and staffing agency data in one central location, making it easy for your company to gain complete control of the entire vendor lifecycle.  ### Improved efficiencies through automation Managing staffing agencies on manual spreadsheets results in fragmented processes and time-consuming steps. Using a vendor management system to automate these processes can result in significant efficiency gains across your organization, making processes such as requisitions, sourcing, onboarding, time entry, approval, and payments seamless across every department within your business. ### Analytics and reporting that improve workforce quality The entire point of a non-employee workforce program is to access hot skills. That means you need quality workers, and you need to be able to onboard them on short notice. A VMS gives you the visibility and analytical data you need to ensure that your staffing agencies are meeting vendor standards and helping your organization to meet its predetermined workforce targets. ### Greater control of spend When companies use a spreadsheet vs. a vendor management system, it results in a lack of visibility and control over vendor performance, leading to the organization overpaying for non-employee workers. Through the visibility and control provided by a VMS, organizations can limit hidden costs and rogue spending by ensuring staffing agencies are meeting their targets and that they are paying temps or ICs the market rate. ## Key Features of a Vendor Management System Organizations will benefit most from an easy-to-use VMS, without all of the complicated bells and whistles that traditional enterprise VMS features. Here are some of the vendor management features that will improve how you manage your contingent workforce program: - The ability to consolidate your staffing vendors - The automation of vendor management processes.  - Program centralization so that your entire organization is in sync, and visible - Vendor guidelines that act as a framework for all hiring managers across your business. - Simplicity, for an easy-to-use platform. - Process requisitions and approvals.  - Scalability, so your technology can grow with your business. ## Learn more about How to Choose the Right VMS Learn more about the Benefits of a VMS and what to look for when choosing the best VMS for your organization. Download our [Free VMS Buyer's Guide](https://www.conexisvmssoftware.com/free-vendor-management-system-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) | | --- | --- | --- |   [![What is a VMS | Benefits ](https://no-cache.hubspot.com/cta/default/7617376/fdcaacfe-f6d3-447c-ba77-05e0602f95e1.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/fdcaacfe-f6d3-447c-ba77-05e0602f95e1)   ![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" : "2026-07-23T12:46:16 AM", "datePublished" : "2022-05-06 11:45:00", "description" : "What is a vendor management system? 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