Vendor Management System
A Vendor Management System (VMS) is simply the software that the client company uses to enable the MSP to run the contingent worker program by allowing all transactions online. A VMS is an internet-enabled, web-based application that is either purchased or licensed by the client company. VMS is a software / application.
Benefits of a VMS :
- Being a web-based application, VMS is vendor neutral. This means no one vendor has an advantage over another. It’s all about the quality of the candidate submitted that the client can evaluate on their own.
- It helps the client company to review and oversee the global supplier sources for the entire organization.
- It streamlines a strict and efficient order distribution for candidate selection. This system, based on guidelines specified by the client, makes it possible for all the staffing vendors to get equal opportunity submissions.
- It helps consolidate the recruiting, invoicing and billing under one system by using a monthly invoicing payment setting. It centralizes budgeting as well as billing of the staffing vendors in a single invoice.
- Provides tighter control on the recruitment process, whether it’s collecting insurance certificates, authorization of expenditure, on-board and off-boarding forms, contractual control for the contingent workforce to name a few.
- Cost management and reduction due to supplier optimization programs. Suppliers are reviewed based on supplier scorecards to support rate negotiations and develop sourcing strategies accordingly.
- Improves retention and quality as the candidates are assessed through talent pools and targeted markets.