What is a Vendor Management System?
A Vendor Management System (VMS) is a software that allows organizations to manage all of their contingent workforce hiring processes, whilst also cost-effectively ensuring improved efficiency.
As a matter of fact, 71% of staffing industry clients now use a VMS, so it’s your time to get invested.
But what key vendor management features should you be looking out for when considering your options?
What are the benefits of having a Vendor Management System in 2022?
Firstly, let’s acknowledge how choosing the right Vendor Management System features can benefit your business.
By having a proper VMS in place, an organization can experience the following benefits:
- Cost-saving: there is a variety of reasons that a VMS can reduce costs – the VMS can help find the right vendors, significantly improving profits.
- Better vendor relationships: a VMS makes managing and maintaining good vendor relationships easy, especially for businesses who deal with multiple vendors at one time.
- Greater selection of vendors: VMS provides a larger selection of vendors, allowing the organization to have more options over who they hire.
- Better contract management: a good vendor management software allows companies to view the status of all vendor contracts and be supplied with other useful information – saving time and focus for more important tasks.
Game-changing Vendor Management System Features
Now you know the benefits of having a VMS, what key features should you be looking for in your VMS in 2022? Well, we’re here to help.
Labor Category Price Intelligence
One Vendor Management System features that is becoming increasingly important is labor category price intelligence. It’s crucial that vendors get paid the price they deserve – no more, no less. A VMS can help with this because it can identify the rates other vendors are being paid based on their role, skills, and location. This means the organization doesn’t have to do it for themselves – a win-win situation.
It is something that can be overlooked but can be incredibly helpful for organizations. It prevents miscalculations and incorrect payments and means that the organization will be saving money by avoiding overspending on vendors.
This is a feature that is included in our VMS software. It’s timesheet and expense management modules can be tailored to honor pay scales and pay rules of the places around the world where your team works.
Artificial Intelligence (AI) stood center stage in 2021 and don’t expect that to change. AI can subside any performance a human can put together, but there is one methodology known as Machine Learning (ML) used by Simplify VMS that can increase the performance of AI in a VMS.
ML devises complex models and algorithms that help the AI to predict. ML takes feedback supplied by humans and creates or adjusts its algorithm, it can then measure the quality of the outcome, and self-improve the algorithm which allows them to learn. In a VMS, the use of ML is mainly focused on candidate selection, allowing organizations to pick the most suitable candidates.
Moving toward a ‘blended approach’
This is one of the Vendor Management System features to look out for in 2022. There is a need for vendor management systems to be more flexible and adaptable to the ever-changing workplace markets, enabling organizations to employ all types of workers.
It will be more beneficial than ever for organizations to use a ‘blended approach’. They could hire directly, use third-party companies to source talent, and most importantly make the most of emerging talent markets such as hybrid and gig economies.
VMS technologies should then be more flexible and adaptable in order to accommodate these multiple approaches, helping to make finding and hiring talent simpler for organizations looking to fill vacancies.