We won’t mince words: Selecting the right Vendor Management System (VMS) for your managed contingent workforce program is likely to be the single most important factor in determining your program’s success.
With the use of contingent workforces escalating further each year and the eternal need for efficient vendor management, the right VMS can significantly ease hiring, streamline processes, and cut costs – all while ensuring better control and visibility over your supplier relationships and contingent labor spend.
Understanding Vendor Management Systems (VMS)
First things first, what is a Vendor Management System? In simple terms, a VMS is a software application that helps businesses manage and optimize their engagements with contingent workers and the vendors that supply them. It’s like having a digital assistant that keeps track of everything from vendor selection and contract management to performance evaluation and payment processing.
For the purposes of this blog, we’ll just look at the highlights of what a VMS can accomplish for you, without delving into every nuance of their capabilities. Besides, there are already about a million places online where you can find this (including here). [Link: https://prosperix.com/solutions/vendor-management-system-network]
Why You Need a VMS
A VMS simplifies and centralizes your vendor interactions and offers insights into vendor performance, talent quality, and costs. That’s the power of a VMS. It’s about efficiency, cost savings, and enhanced vendor relationships. With a good VMS, you can:
- Streamline vendor selection and onboarding
- Manage contracts and compliance efficiently
- Track and analyze vendor performance
- Optimize spending and reduce costs
- Facilitate better communication and collaboration with vendors
Now that you know what to look for, how do you evaluate VMS vendors? Here are some tips:
1. Check Vendor Reputation and Experience: Research the vendor’s reputation and experience in the market. Look for reviews, testimonials, and case studies. A vendor with a proven track record is more likely to offer a reliable and effective technology solution.
2. Assess the Total Cost of Ownership: Most VMSs collect a small percentage of spend as their fee, so that’s a great place to start comparisons. But it might not be the end of the story. Also consider implementation, training, support, and upgrade costs. A VMS that seems cheaper upfront might cost more in the long run.
3. Request Demos and Trials: Your business is unlike any other, so its VMS requirements will also be unique. So before committing, request demos or trials from the providers and be sure to outline all the unique characteristics that might prove to be stumbling blocks for some solutions. You’ll not only get hands-on experience with the VMS, but you’ll be better able to assess if it meets your needs.
4. Consider Customer Support and Service: Evaluate the level of customer support each candidate provider offers. If you have global needs, make sure your provider offers support coverage in all the regions, languages, and time zones that are important to your operations. Good customer service can make a significant difference, especially during the implementation phase and whenever you encounter challenges.
5. Seek Feedback from Peers: Talk to peers in your industry who have implemented a VMS. Their insights and experiences can provide valuable perspectives and help you avoid common pitfalls.
How Prosperix Can Help
Prosperix’s vendor management solution – Prosperix VMS Network – stands out among its peers thanks to its wide variety of differentiators and unique offerings. Here’s how Prosperix’s VMS Network can benefit your managed program:
- AI-driven Hiring Marketplace: Prosperix offers a patent-pending technology that includes an AI-driven Hiring Marketplace. This changes the game where it comes to contingent workforce recruiting, as it lets you tap into the world’s broadest network of global suppliers and candidates – without sacrificing efficiency or talent quality.
- Real-time Reporting and Analytics: With Prosperix, you gain access to true real-time reporting and analytics. This gives you instant, consolidated visibility into all program metrics and activities – in the U.S. and beyond – which supercharges your decision-making capabilities.
- Automated Supplier Management: Prosperix’s automated supplier management capabilities – another unique feature and crucial differentiator – streamline processes, eliminate manual supplier tiering, and make it easy to efficiently manage the thousands of suppliers accessible through the Hiring Marketplace.
- Flexible Workflows: Prosperix accommodates flexible, customizable workflows, which you configure right down to the individual engagement. The software even includes a unique drag-and-drop workflow builder so you can customize and fine-tune your processes almost instantly.
- Immediate Setup and Go-Live: No VMS has a faster time-to-value than Prosperix VMS Network. Your managers can begin hiring as soon as they create a login. Of course, we can also design, test, and deploy more comprehensive implementations (including all levels of technology integrations) as needed.
- Candidate-Centric Experience: Prosperix uses a modern and intuitive interface that focuses on providing candidates with a transparent and easy-to-follow hiring experience.
Prosperix has been recognized as a market leader by Ardent Partners and The Future of Work Exchange in the 2022 VMS Technology Advisor Report. This accolade is a testament to our VMS’s innovation and effectiveness.
Selecting the right VMS is a critical decision that can significantly impact the efficiency and effectiveness of your managed contingent workforce program. Prosperix VMS Network offers a comprehensive, innovative solution that addresses key aspects of vendor management, from AI-driven processes to real-time analytics and flexible workflows.
By choosing a system like Prosperix, you can ensure that your organization stays ahead in the dynamic world of workforce management, driving both operational efficiency and strategic growth.