Vendor management systems (VMS)

Overview of Vendor Management Systems (VMS)

  • A Vendor Management System (VMS) is a type of software tool that facilitates the procurement and management of temporary and contract labour.

  • VMS is often used in conjunction with MSPs or other forms of recruitment outsourcing to streamline processes, improve efficiency, and gain visibility and control.

  • The key functions of a VMS may include distribution of job orders, collection of timesheets and expense reports, and provision of reporting and analytics.

Benefits of Vendor Management Systems

  • Increased Efficiency: A VMS can automate many administrative tasks such as distributing job orders and collecting timesheets, which can greatly reduce the time and effort required for recruitment.

  • Greater Visibility and Control: VMS provide real-time data and tracking of key metrics such as fill rates and time-to-hire, offering businesses transparency and control over their staffing needs.

  • Reduced Costs: Through a clear and consistent process and improved efficiency, a VMS can help businesses to reduce their staffing costs.

  • Risk Mitigation: VMS can help with compliance checks and ensure that all hiring related processes adhere to relevant legislation and regulations.

Types of Vendor Management Systems

  • Standalone VMS: A software tool that is used solely to manage staffing suppliers and contingent workers. This type of VMS can be used across multiple departments or functions within a business.

  • Integrated VMS: A VMS that is integrated into a larger platform, such as a human resources management system (HRMS) or enterprise resource planning (ERP) system. This type of VMS allows for greater interconnectivity and consistency across business operations.

  • Customised VMS: A VMS that has been tailored or customised to meet the specific needs of a business or industry.

Key Considerations when Selecting a VMS

  • User-Friendly and Accessible: The VMS should be user-friendly and easily accessible to both the hiring manager and the recruitment team.

  • Integration Capabilities: It’s beneficial if the VMS can integrate with existing HRMS and ERP systems for consistent data and process management.

  • Data Security: Ensure the VMS vendor values and implements high standards of data security and privacy protection.

  • Customisation options: A VMS that allows for customisation can be tailored to meet specific industry needs or legal requirements.

  • Support and Training: The vendor providing the VMS should offer adequate support and training to ensure efficient use of the system.