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.
That’s where a vendor management system (VMS) comes in.
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.
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,
Here are just a few reasons why your business needs a vendor management system:
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.
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.
Want to learn more about how your business can benefit from the use of a VMS? Contact Conexis VMS today. We’d love to answer your questions on how a VMS can transform your contingent workforce program