A Vendor Management System (VMS) is a cloud or web-based software platform that helps companies recruit, hire, manage, and analyze their contingent workforces. Whether managed by internal teams or a Managed Services Provider (MSP), a VMS helps standardize and automate all contingent workforce management processes, from creating job requisitions to candidate sourcing, onboarding, contracting, invoicing, payment, and offboarding.
VMSs have changed dramatically over the last two decades, but their importance in most businesses’ talent ecosystems has only increased over time.
Comparing a Traditional VMS vs. a VMS Network
Just to make sure we’re all on the same page, the term “implementation” simply refers to the process of installing the VMS in your environment and integrating it with existing HR and procurement systems and processes.
The VMS vendor itself will perform the implementation in most cases, but sometimes they bring on a third-party implementation specialist to manage the process. VMS implementations are often complex, multi-week (or even multi-month) projects that may involve some substantial coordination with many members of your team to execute it well. They can also be expensive – some VMS vendors can charge up to $100,000 to complete the implementation, though some will often bundle their implementation costs into their fee structure (or even waive it completely to try to win your business).
Comparing a Traditional VMS vs. a VMS Network
One of the more prominent recent changes in VMS technology has been the emergence of the networked VMS. A networked Vendor Management System differs starkly from a traditional VMS: While all VMSs help manage contingent workforce programs, networked VMSs go further by streamlining communications, strengthening stakeholder relationships, delivering richer insights, and enabling businesses to hire on an exponential scale.
Unlike a traditional VMS, which is typically isolated in its function, a VMS network brings together businesses, talent suppliers, and job candidates in a dedicated and cooperative ecosystem. For example, Prosperix VMS Network combines crowdsourcing, connected talent pools, artificial intelligence, personal curation, and end-to-end hiring technology in a single, cloud-based, fully integrated SaaS solution.
Prosperix VMS Network
Launched in 2021, Prosperix VMS Network is the industry’s only true networked VMS. It offers:
- Fully integrated Hiring Marketplace: Prosperix’s built-in, fully integrated Hiring Marketplace hosts a network of thousands of suppliers instead of only a few. It lets clients access a proven network of vetted national, regional, boutique, and independent firms, giving you unfettered access to all the talent pools they represent. By spanning cultures, geographies, business sectors, and ideologies, you can amplify your reach, securing more highly skilled talent at more competitive costs.
- Automated supplier management: Built with innovative technology that uses powerful artificial intelligence and machine learning algorithms, Prosperix VMS Network automatically matches job requisitions with successful suppliers that represent the most qualified candidates. This automated feature eliminates the need for manual job distribution and supplier tiering, which significantly improves hiring time and administrative overhead.
- Real-time reporting and analytics: The network powers contingent workforce programs with dynamic data that enables users to easily monitor program health, supplier performance, and candidate quality. Prosperix VMS Network provides data in real-time, so you don’t have to wait for weekly, monthly, or quarterly reports to analyze and evaluate KPIs.
- Fast and flexible hiring workflows: Prosperix VMS Network offers customizable workflows, so you can quickly create end-to-end processes specific to the needs of your internal teams. And if you need support making your workflows all they should be, our expert MSP services are standing by to support some or all of your day-to-day hiring processes.
- Immediate set-up and go-live: Our VMS network is easy to install and configure, so you can begin using it immediately. You can also add existing and new suppliers quickly, which means you can start reaping the benefits right away.
Benefits of using Prosperix VMS Network:
- Faster Hiring: Our VMS network includes a unique, integrated Hiring Marketplace, enabling our clients to gain instant access to diverse talent pools filled with a wide range of skill sets. And with the industry’s broadest supplier base, clients can immediately increase the availability and accessibility of talent while improving the hiring speed and quality of submitted candidates.
- Precise Connections: Unlike a traditional VMS that operates with data silos, our Prosperix VMS Network provides a seamless experience that closes the divide between stakeholders. By strengthening communication links among businesses, suppliers, and candidates, our VMS network improves visibility and simplifies processes, leading to better hiring outcomes.
- Richer Insight: The advanced technological capabilities of our VMS network enable real-time data analysis, enabling companies to strategically navigate through every hiring situation, make dynamic decisions, and increase agility.
- Lower Cost: The vast Prosperix Hiring Marketplace is global in reach and includes proven talent at a wide variety of bill rates. Further, because suppliers recognize that they are part of such a diverse and dynamic network, they are compelled to submit candidates at competitive rates. Over time, this competition drives costs down significantly.
Why should I make the switch to a VMS Network?
The selection of a VMS provider can make or break your contingent workforce program. Whether your business currently has a technology solution provider or is searching for a new partner, ask yourself these questions:
- Is our current approach to contingent workforce management difficult for managers to embrace and therefore contributing to rogue spending?
- Does our current contingent management process ensure complete program visibility?
- How do our incumbent suppliers ensure the highest level of candidate quality?
- Can our current supplier list support our need to scale?
- Does our current technological solution create a positive user experience?
- Are we able to fill niche/critical job roles quickly?
- Do our solution partners offer expert advice and support in helping our contingent workforce programs become best-in-class?
Choosing Prosperix VMS Network isn’t just about upgrading your vendor management system; it’s about embracing a future where workforce management is seamlessly integrated, highly efficient, and strategically aligned with your business goals. By transitioning to a networked VMS, your business can handle the current challenges of contingent workforce management while adapting to future workforce trends. In short, it positions you to thrive.
