What is a Vendor Management System (VMS)?
Vendor Management System (VMS) technology was initially invented to streamline the procurement of staffing talent. This offered a number of benefits to businesses – from increased visibility of their staffing spend and reduced complexity to the elimination of human error through automation. A VMS can benefit staffing firms just as much as it does businesses, making them more efficient, more effective – and ultimately more lucrative.
More efficient staffing processes
A VMS will help streamline your staffing process and ensure quality and compliance are consistent. In a competitive landscape, staffing suppliers must provide the best possible experience to businesses. But as organisations increase their reliance on external workers, many suppliers struggle to ensure rapid responses and consistent communication.
A VMS is therefore a vital tool. It enables staffing suppliers to work more efficiently, streamlining their process and allowing firms to configure the platform to fit their specific needs and workflow.
- Match candidates more efficiently
- Fix communication gaps
- An automated hiring lifecycle
A lower time-to-hire is directly correlated with a lower cost-per-hire, according to recent research.
Greater visibility of performance
With clearer data, staffing suppliers are empowered to improve their strategies and processes. Many suppliers struggle to properly quantify their efforts. Even those that generate data on various elements of their process tend to lack a centralised platform that can be used to create a full picture of their performance. A VMS offers the perfect solution, enabling suppliers to understand and respond to their current performance using granular, highly reliable data.
- Track performance in real-time
- Optimise based on data, not intuition
- Unlock new business opportunities
Less than 1 in 4 staffing companies say that key metrics are available to everyone in their HR team.
Enhanced invoicing
Suppliers can save time and money by integrating and automating timesheets. Invoicing requires a great deal of time and effort on the part of both suppliers and businesses. Many businesses still operate using cumbersome manual timesheet processes – which create unnecessary complexity and room for error.
- Get rid of manual timesheets
- Provide more options
- Increased compliance
Digital timesheets save businesses 5% of their total staffing expenditure by avoiding human error and payroll spillage.
Better client relations
A VMS improves communication and collaboration between suppliers and their clients. For many staffing suppliers, managing relations with your business partners can be challenging. But a good relationship is essential, as it builds trust and ultimately ensures that the business will continue coming to you to fulfil their staffing needs.
- Improved communication
- Track the process easily
- Enable clients to reach out with ease
68% of large companies are consolidating their staffing suppliers – and 29% more say they plan to. A strong, reliable relationship is key for staffing suppliers to ensure they are the supplier of choice.
Increased Business Opportunity
Staffing suppliers can grow their business more effectively using a VMS. VMSs clearly provide a number of benefits in terms of improved processes and relations. But many suppliers don’t realise that they can actually help you win more business and grow.
- Receive more requisitions
- Forecast demand and planning proactively to meet it
- See future job postings in advance
The average cost saving achieved by implementing a Supplier Management solution is 12%.
If your company is ready to implement a vendor management system or if you have further questions, contact our team to request a demo today.
