With the use of non-traditional workers and staffing agencies increasing for all businesses, vendor management is now becoming a progressively more important aspect of a company’s overall business strategy.
Businesses that want to truly optimize their contingent workforce and staffing agency selection process must develop effective contingent workforce management strategies that use technology to underpin how they manage their vendors.
What is Vendor Management
Vendor management is the process that businesses use to strategically manage their vendors. This includes every step in the vendor management lifecycle, from sourcing vendors, negotiating contracts, mitigating risk, analyzing vendor performance and offboarding. Learn more at What is Vendor Management.
That’s where a vendor management system (VMS) comes in.
What is a VMS
A vendor management system is a powerful platform that can be accessed through a web browser that improves how your organization manages its staffing agencies. By acting as a system of record for your company’s entire staffing agency process, a VMS centralizes, automates and consolidates all of the processes and data associated with managing your vendors.
The result? A VMS gives your organization complete visibility and control of its staffing agencies and non-employee workforce.
Why you need a VMS
By investing in, and implementing, a vendor management system into the contingent workforce program, organizations are able to realize a number of benefits from risk mitigation, cost savings, vendor consolidation, improved compliance,
Improved efficiencies
No longer does your team need to spend countless hours manually managing staffing vendors on spreadsheets. Instead, use VMS software to automate all of those processes and save your employees time to focus on what really matters, the core competencies of your business.
A VMS will automate all of the processes associated with managing your staffing agencies, from sourcing, onboarding, time entry and approval, analyzing vendor performance, payments and much more.
Reduced risk within your contingent workforce program
One of the biggest challenges associated with a contingent workforce program is fragmented processes. If you are using spreadsheets to manage your staffing agencies, then it’s likely that different hiring managers will save data on different spreadsheets or even on their email. This issue is, this leads to no visibility into how vendors are performing and how much your company is paying them.
With a VMS, you will be able to consolidate all of your staffing agency data in one centralized location. You’ll know exactly how your vendors are performing and staffing agency rates will be standardized, ensuring all hiring managers know exactly how much to pay.
Cost savings
We’ve touched on the efficiency improvement your internal team will realize through the use of a vendor management system and there’s no doubt that will lead to some soft cost savings as well, but what about hard savings?
A vendor management system will give your organization the visibility it needs to truly optimize its use of staffing agencies and contingent workers. That means you can truly set standardized rates across your business, you’ll mitigate the rogue costs associated with poor program management and you’ll dramatically improve the quality of your non-employee workforce for better business outcomes.
Improved staffing agency performance
With complete visibility into your entire contingent workforce program, a vendor management system gives your organization the control it needs to seamlessly track staffing agency performance.
With the help of KPIs, you will be able to oversee your staffing agency and work more closely with them to ensure that they are meeting the performance standards outlined in your initial partnership agreement. The better you work with your staffing agencies, the more you’ll be able to optimize your contingent workforce.
Ensure non-employee workforce compliance
Spreadsheets are messy, and proper documents and data can easily be lost. That’s not good news when it’s a crucial aspect of contingent workforce management that you need to properly document your non-traditional workers. A VMS helps ensure compliance through proper documentation.
Learn more about a Vendor Management System
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 here:
Discover the Power of 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
About 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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