Vendor Management Systems (VMS) are now a common part of modern staffing. Read on to learn more about how VMS works, how to benefit from them, and how we can help manage the process.
Unsure of your next step?
Back Office VMS Support
Managing and monitoring your Vendor Management System (VMS) is crucial. Our team can take on the burden and do your VMS monitoring for you, so oversights and mistakes don’t cost you in the long run.
- VMS ‘True Up’ services for most VMS systems
- Correction and adjustment of hours
- Best practice VMS management consulting
How Does A Vendor Management System (VMS) Work?
A VMS is a software or online application that facilitate the procurement of staffing services between end-clients and staffing vendors. Staffing agencies can view and manage open jobs and submit talent. It also allows both parties to collect requisitions, facilitate onboarding, automate transactions, store and collect hiring data, and provide reporting on metrics.
Benefits & Advantages of Using A Vendor Management System (VMS)
While working with a VMS can be challenging, there are definite benefits and opportunities for staffing agencies who can successfully execute.
- New business opportunities. As more large companies use VMS system to fill positions, a steady supply of new business can help drive your growth.
- Efficient candidate matching. With VMS as opposed to traditional staffing, everything you need to know to fill the position is available immediately, and you can use analytics and sorting to respond to job openings quickly.
- Less communication gaps. Communication delays can occur at staffing firms if a client isn’t able to contact the right person. But with the help of VMS proxy or delegate features, coworkers can step in and ensure seamless communication flow.
- Improved tracking and data. A VMS helps staffing agencies to track the entire candidate lifecycle down to granular levels. Analytics such as number of calls required, speed to deal, turnover rates, bottom line cost, etc., can help staffing firms improve processes.
Types and Capabilities of Vendor Management Systems
Helps facilitate due diligence processes for selecting staffing vendors and services.
Support enrollment and registration of new staffing vendors in the system, including access and permissions.
Monitors and evaluates vendor performance in quality and reliability.
Describes and outlines the level of service agreed upon by the staffing vendor.
Financial Controls & Compliance
Enables you to set up spending limits and budgets to reduce compliance risk related to vendors.
Ensures effective client-supplier relationships for mutual benefit.
Manages the lifecycle of a contract including renewal period, amendments, and termination.
Learn More With Our Staffing VMS Resources
6 VMS Management Best Practice Tips for Staffing Owners
Learn VMS management best practices from Tabitha, a Funding Reconciliation Specialists who helps clients with VMS management.
Challenges, Benefits, and Best Practices for Working with VMS/MSPs in Staffing
While working with a VMS/MSP has its challenges, it can also benefit staffing owners who do it right. Read on to learn the challenges, benefits and best practices of working with VMS/MSPs in staffing.
Explore All Our Back Office Solutions
Risk carefully, grow purposefully and — recruit and staff resourcefully with Advance Partners — fully committed to your forward momentum of your staffing & recruitment company.
FREQUENTLY ASKED QUESTIONS
A vendor management system or VMS is a web or software application that helps companies find, engage, and manage contingent and contract labor. Staffing agencies can compete for job listings.
A managed service provider or MSP is a third-party business that manages the
temporary work procurement for companies. Many MSPs use VMS systems to manage this, so the terms often go together.
VMS and MSPs sometimes have a negative connotation in staffing stemming from challenges like lower profit margins, lack of personal connection, stiff competition for jobs based on price, and hiring challenges.
Some best practices for managing a VMS would be to hire a dedicated VMS recruiter (or several), compare time weekly to see if the system matches what you know to be true, review all rejected time immediately, make sure all entered rates are correct, account for fees and discounts, have a central mailbox for communications, and upload all documentation before a new hire starts.