For Employers

Vendor Management Systems (VMS)

A Vendor Management System is a web-based application (eProcurement) used primarily for procuring and managing contingent labor and staffing service providers.

Challenges faced by companies with Contingent Labor:

• Internal management costs are typically 10% of total spend
• Decentralization leads to rogue spend and higher costs
• Candidate quality, time to fill and retention are not monitored
• Vendors are largely unmanaged and not directed
• Bill rates vary for the same skill sets
• Lack of industry/market benchmarking analytics

A VMS System offers the following benefits:

• Software that is customized to enhance the end-user experience of on-boarding contingent labor
• Creates a competitive environment for all requirements to insure the best rate and best candidate for each position
• Supply chain integration lowers vendor’s costs
• Management and monitoring of vendors
• Reporting on rates, spend, utilization and vendor performance
• Analytics and benchmarking for increased rate structure visibility
• Refined business process with expert consultancy on contingent labor management
• Improved tracking and ability to access “proven performer” talent
• Allows for strategic leveraging of spend with vendors
• Preferred vendors benefit from access to more requisitions

A VMS System assures a significant return on investment for our clients:

• Fully vendor-funded model
• Rate rationalization savings – estimated to 20% of the current, unmanaged spend
• Elimination of internal resources to run process, resulting in resource savings – estimated to be 10% of total spend
• Expanded management reporting
• Greater access to talent achieved through higher end-user visibility of best-in-class vendor