What is a Vendor Management System?
A Vendor Management Systems (VMS) offers companies insight into their contingent workforce management, resulting in cost reduction, improved supplier performance, and identified risk areas through a more structured process at every step of the talent supply chain. A VMS can completely turn the complex pieces of the contingent workforce procurement and management puzzle into a clear picture.
As the number of contingent workers and the interest in acquiring skilled talent continue to skyrocket, VMS solutions have become an increasingly in-demand technology for human resources. Data from the Bureau of Labor Statistics (BLS) revealed that, “there were nearly 6 million contingent workers in 2017. These workers represented 3.8 percent of U.S. employment.”
Now we know what the VMS is, but why is it important to business?
Why a VMS is important for your business
A VMS is created to gain transparency and control over workforce vendor information, supplier relationship management, and employment risk exposure in your company. Adding a VMS technology to your strategic contingent workforce plan greatly reduces the possibility of human error by removing the need for manual data entry and streamlining your workflows. Automating your supplier onboarding process will help ensure you have a complete vendor data profile for every supplier from day one and can also monitor performance and compliance.
6 Top Benefits of a VMS
Organizations that have their strategic contingent workforce management within a VMS traditionally experience the following key benefits.
Automated Requisition Distribution | The automatic dissemination of information and priorities with your talent suppliers keeps the hiring process moving, creating enhanced efficiency for all participating entities.
Access to Analytics & Reporting Tools | Using the VMS’ real-time intelligence, businesses gain access to their suppliers’ performance, spend, cost control and reduction, document management, process improvement, compliance and more. Through the VMS, it becomes clear to see where opportunities are so adjustments can be made and positive results magnified.
Vendor Contract Conformance | In a multi-vendor setting, the lack of a VMS creates an organizational nightmare with managing contracts, documentation, and other important employment-related information. By implementing a VMS, companies benefit from a centralized view of the status of all contracts and paperwork, tracking and measuring the performance of all vendors. This saves companies valuable time and allows decisions to be made more quickly and confidently.
Configured Workflow Process | With a VMS in place, hiring managers are notified when candidates are submitted, all submissions are consolidated in one place, and talent can be easily assessed against the requirements for the role or rejected which helps suppliers become more effective.
Streamlined Financial Administration | A VMS allows companies to take control of the entire financial process, saving time and automating end-to-end processing of workforce payment and supplier invoicing. The contingent workers enter their billable time and submit it for managers to review and approve online, through a secure portal that saves your company time and reduces employment-related risk.
Enhanced Vendor Collaboration | Effective collaboration is important to any business relationship. Our VMS technology automatically triggers important and time-sensitive notifications in vendor dashboards and using automated email communication. Within these notifications, companies can provide feedback throughout the hiring lifecycle, providing vendors with important information to make improvements.
Why choose APRU for VMS Technology?
APRU (Advanced Platform | Resources Unlimited) extends businesses access to a technology solution which addresses the needs of organizations seeking to centralize, streamline, and track the contingent workforce program.
APRU’s primary focus is on people. The key to being a true VMS partner is sourcing the right workers, ensuring their engagement, and measuring their performance. This platform cultivates relationships between providers and businesses, increasing collaboration and success!
All vendor management systems are not created equal.
While workforce solutions platforms may have similar service offerings - distributing job orders, expediting the interview and hiring process, tracking labor time and expense, as well as facilitating approval and payments - APRU is different.
- Decades of Expertise | APRU’s team has been providing contingent workforce employment services to businesses for over 40 years and is also backed by the vast VMS technology expertise.
- Manager Experience | From implementation of the software to collaborating with vendors, APRU’s team creates a great experience for our clients and vendors.
- Change Management | APRU’s team helps business clients transition their contingent workforce through internal buy-in and outstanding customer service.
- Service Scalability | Rest assured that as a company’s VMS program needs grow or change, APRU is structured to adapt and flex with the ebbs and flows of business.
To learn more about how APRU can offer your company transparent visibility and control of your contingent workforce, visit www.APRU.com and request a demonstration of their technology solution.