Managed Services: VMS
MSP | VMS | RPO
Web-based application (eProcurement) used primarily for procuring and managing contingent labor and staffing service providers.
- Contingent Management Challenges
- 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
VMS Utilization 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 abilty to access “proven performer” talent
- Allows for strategic leveraging of spend with vendors
- Preferred vendors benefit from access to more requisitions
Return on Investment
- 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
