There’s a lot of power in vendor management system (VMS) technology. From creating efficiency through automation and AI to maintaining compliance and mitigating risk, there are very few downsides to implementing a VMS for managing your extended workforce. But can your VMS grow with your business? Here’s how going beyond the technology can help you get even more out of your VMS.
Why Would You Want a Partner?
Think about the systems you currently use in your business. Lots of acronyms: HRIS, CRM, ERP, ATS, VMS, and more. Some systems may be more integral to your business than others, or to different functions. Some may be straightforward and require little support while others may house more complex areas of your business. This is particularly true when it comes to a VMS.
The extended workforce includes a variety of workers who hold many different certifications and possibly require different levels of access and clearance. Having a partner well-versed in navigating the differences in items like compliance requirements, sourcing, and multiple invoicing and payment terms can give program managers and procurement specialists the support and backup they need to keep the operation running smoothly.
When it comes to the contingent workforce, there are two main types of partnerships you can leverage to maximize the effectiveness of your program and your VMS: MSPs and technology partnerships.
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Managed Service Providers
Managed Service Providers (MSPs) might be the most common type of partner when it comes to managing your contingent workforce. Each one may have a different specialty and set of service offerings, but generally, they all take the reins of your program so you can focus on your business.
MSPs handle all of the routine tasks and decisions for your extended workforce, so you don’t get bogged down by the details. According to SIA, typical responsibilities of an MSP often include:
- Overall program management
- Reporting and tracking
- Supplier selection and management
- Order distribution
- Consolidated billing
An MSP may or may not be independent of a staffing supplier.
MSPs allow companies to completely outsource the management of their contingent workforce. This hands-off approach places the burden of managing the program with experts, so you can be sure everything is running smoothly.
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It might not be as obvious to consider your technology as a partner, but your technology suppliers may double as partners to support your program. As your program grows, you may discover some of your technology platforms need to scale. And who better to help make adjustments than those who built them? When it comes to your VMS, it doesn’t have to only be about technology.
At VectorVMS, we pride ourselves on being a true partner to you and your contingent workforce program. And we extend that partnership to other technologies that can serve you as well.
Your sourcing strategy may include technology, allowing you to take advantage of direct sourcing opportunities for your extended workforce. Direct sourcing enables VMS clients to bring the modern-day true talent acquisition function into the contingent labor program. This builds an efficient alternate sourcing channel to augment your strategy.
From onboarding and offboarding your contingent workers to ensuring their classification is correctly identified, compliance is something that must be top-of-mind throughout the contingent labor lifecycle. Each organization, function, and role could have different requirements, so it’s important to make sure you have the right technologies connected to your VMS for your needs. When it comes to background checks, independent contractor classification in the U.S. and IR35 in the U.K., you want the experts on your side.
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Services don’t necessarily bring technology to mind, but there are technologies that can provide a service that can automate and operationalize processes in your program. These providers can offer things like scheduling and timekeeping platforms that will keep your contingent staff on task. Some services are more geared toward specific industries, so having a partner to support your needs helps ensure you have the right technology to get the job done.
One of the benefits of using technology in your contingent or extended workforce management is the ability to track information more effectively. With so many different types of information that you might need to access in your extended workforce, data technology partners can ensure you get the information you need to inform your decisions.
Customize Your Program
No two contingent workforce programs are exactly alike. Technology helps optimize your program, but you can get even more efficiency through partnerships. Relying on experts in specific aspects of your workforce can save time and scale with your organization.