Vendor Management Systems (VMS) are purpose-built recruitment software designed to manage contingent workforces. TRS Workforce Solutions (TRS WFS) partner with a range of leading VMS providers to support our Managed Services Programs (MSP) services.
A fully deployed VMS provides a platform with functionality to manage the full life cycle of a temporary worker from requisition all the way through to invoicing and ultimately offboarding. TRS WFS work with your business throughout the sales process to help identify the solution that best meets your needs.
VMS are highly configurable systems that can be set up to match company specific requirements. Regardless of the final system that is implemented there are a range of features and benefits that can be achieved:
Workers Requests & Requisitions - all requests for new workers can be submitted via the VMS. Hiring Managers have access to the VMS to submit exact requirements, budget, and role details to the MSP. Requisition templates can be saved to the VMS (either prior to the service being launched or on a more ad-hoc basis during the lifetime of the service) which can help automate this process and mean a new worker can be reqested in a matter of minutes.
Approval Framework - the VMS can be set-up and configured to mirror your company approval framework. Once a new requisition has been submitted it will be automatically routed through the agreed approval chain until the right level has been met to ensure a role is approved ahead of the recruitment process. This approval chain can be multi-level based on hierarchy spend or both.
Vendor Management - the MSP Program team can manage all suppliers engaged by the MSP via the VMS. The MSP releases each approved requisition to the chosen suppliers based on specialism and tiering. Once released the suppliers access the requisition via the VMS supplier portal. Suppliers have access to all role details and can submit proposed candidate profiles against the job. This provides a secure portal for candidate details to be shared that only approved users can access and ensures that all activity across the requisition can be tracked and reported on.
Worker & Assignment Management - ensuring accurate monitoring and tracking of all workers in your company is essential to ensure you maintain full reporting, visibility, and control across your contingent workforce. All worker assignments are managed through the VMS ensuring that any changes to approved working conditions (extension, pay rate) go through the agreed approval chain.
Onboarding & Offboarding - VMS support automated on-boarding and off-boarding processes and can help ensure that all steps are followed before a contractor starts an assignment. Documents can either be stored in the system or check list completed ensuring key on-boarding steps are completed. Similarly, automated process for workers leaving can be created to ensure that all systems and buildings accesses are closed.
Timesheet, Expense, and Invoicing - all workers across the MSP will submit timesheets and expenses via the VMS. These are then automatically routed through to the agreed approvers ensuring control across all spend prior to workers being paid and invoices issued for the work. These can then be used to generate consolidated invoices for all workers across the whole MSP.
Analytics & Reporting - VMS can ensure that all aspects of the program are fully visibile. Reporting is available across all aspects of the program and provides real-time reports on spend, headcount, vendor activity, as well as data across agreed SLA's and KPI's.
Integrations - API's and the ability of VMS's integration capabilities ensure that key data can be moved to and from other systems. These can include your accounting systems, HRIS systems or any other key back-office system.
Frequently Asked Questions
What is a Vendor Management System (VMS)?
This is a digital platofrm that enables organisations to manage their dealings with suppliers and service providers. It streamlines processes like vendor selection, contingent staffing management, performance evaluation, compliance tracking, and payment processing, thereby enhancing efficiency and reducing risks.
How does a VMS benefit an organisation?
Implementing a VMS brings numerous benefits, including improved vendor performance and compliance, enhanced procurement transparency, cost savings through competitive bidding, and streamlined administrative processes. It also facilitates better data-driven decision-making and optimises the supplier management lifecycle.
Can VMS integrate with existing procurement software?
Yes, most Vendor Management Systems are designed to be flexible and can integrate seamlessly with exisiting procurement and enterprise resource planning (ERP) systems. This integration capability ensures that data flows smoothly between systems, eliminating the need for manual data entry and reducing errors.
What features should you look for in a VMS?
Key features to consider in a VMS include vendor registration and onboarding, contract management, performance and risk assessment tools, invoicing and payment processing, reporting and analytics. and user-friendly interfaces. Additionally, security features and compliance tracking capabilities are essential for safeguarding your data and operations.
Is a VMS suitable for small businesses?
Absolutely. While historically VMS solutions were adopted by large corporations, technological advancements and market demand have made them accessible and affordable for small and medium-sized enterprises (SMEs) as well. They offer scalability and flexibility to meet the unique needs of smaller businesses, helping them to efficiently manage their vendor relationships.
How does a VMS improve vendor performance and compliance?
A VMS enables organisations to set clear performance indicators and compliance requirements for their vendors. It provides tools for monitoring these metrics in real-time and facilitates swift communication and corrective action when standards are not met. This proactive approach ensures vendors meet your business needs and adhere to industry regulations.
What is the cost of implementing a VMS?
The cost can vary significantly depending on the size of your organisation, the complexity of your vendor management needs, and the specific features you require. It typically involves an initial setup fee followed by a subscription or licensing fee. Many providers offer scalable pricing models to fit different budgets and business sizes.
Can a VMS handle international vendors?
Yes, many are designed with global capabilities in mind, including support for multiple currencies, languages, and regulatory compliance standards. This makes them an ideal choice for organisations with a diverse international supplier base.
How does a VMS support strategic vendor management?
By providing comprehensive data analytics and reporting tools, a VMS allows organisations to assess vendor performance, spend analytics, and market trends comprehensively. This insight supports strategic decision-making, helps identify opportunities for consolidation or diversification, and focuses stronger, more collaborative vendor relationships.
What steps should an organisation take to successfully implement a VMS?
Successful implementation starts with clearly defining your objectives and requirements. Involve key stakeholders early in the process to ensure their needs are met. Choose a VMS provider such as TRS Workforce Solutions with a proven track record and robust support services. Finally, dedicate resources to training your team and managing change effectively to ensure widespread adoption and maximise the systems' benefits.