A guide to integrating a Vendor Management System (VMS)
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There are no greenfield sites for enterprise VMS systems. Organizations will already operate a financial management system to run their accounts. It’s common for adopters of VMS systems to expect any associated payment processes to offer two-way integration within their existing system.
What buyers want is a seamless digital ecosystem – and with Simplify VMS, HIRE and TTM they can achieve it.
Many VMS platforms don’t integrate with your IT
When your technology solutions are closely integrated you can increase the number of machine-to-machine automations (reducing costs through automation of manual tasks), and re-use data in smarter ways (offering you business insights to support better decision making and adapt to change faster).
Many traditional VMS systems are unable to offer the levels of integration that fundamentally remove tedious manual data processing tasks for recruiters and hiring managers. This is because the original clutch of VMS offerings were developed in the early era of SaaS apps and effectively offer one platform to all customers. This significantly hampers the ability of the VMS vendor to respond to customization and integration requests.
VMS integration with core back-office systems
There are two major integrations happening with VMS presently;
Horizontal VMS integration
To make the integration with front-end market analysis platform and back-end payment processing systems (and core systems of record) simpler – to reduce cost, complexity, and manual tasks.
Vertical VMS integration
Working across direct and indirect talent sourcing channels to equip procurement with the ability to compare, vet, select and onboard different types of third-party talent side-by-side through integrated systems.
Awesome VMS Integration with your systems and tools (as standard)
Our solutions reduce manual data processing and reporting tasks through smarter integration. Our Single-Sign-On (SSO) integration with your systems and third-party tools means that users get to work with an interface they’re familiar with and won’t have to keep logging in to apps, send emails (that could be automated), or re-key data between systems.
We work with the best of the best
We partner with best-in-class tools to give your organization the ability to design its talent ecosystem how it wants to, leveraging investments already made into key technology platforms.
Purchase-to-Pay VMS Integration
While there may be nuances between the working practices and systems of different organizations, it’s broadly accepted that—in recruitment—the term Purchase-to-Pay (P2P) describes the process steps of:
- Candidates submitting timesheets and expenses
- Calculation of pay-rates based on territorial pay rules
- Submission and approval of documents to Hiring Managers
- Processing of payments to vendors
- Production of account statements and invoices
- Fulfilment of validation steps
- Uploading of articles to Financial Management systems
- Publishing of reports
The P2P process managed by a VMS is complicated by a number of factors:
Pay rates vary from State to State, Region to Region
Every state has its own rules on what workers should be paid in areas of hours worked and overtime. This means, when timesheets are calculated, they have to adapt values due for payment based on algorithms able to manage pay rates and scales. Automating this is a non-trivial task, but it’s unreasonable and impractical to expect contractors to work it out for themselves.
Every organization has a different financial ‘system’
Integrating with incumbent ‘systems’ is not only an IT issue; businesses will adopt different accounting protocols and these need also to be embraced by the P2P integration.
VMS buyers expect everything online—and ‘plug-in-able’
Platforms like LinkedIn, Amazon, and Facebook have raised the bar on what to expect when it comes to online account management, billing and access to statements, invoices etc. VMS user companies, vendors, and MSP partners will want P2P to be transparent in its operation, but always visible and accessible online.
Other P2P rewards that come from using Simplify Workforce solutions
While the best outcome for any P2P solution is always to make sure stakeholders get paid on time and the minimum amount of money is tied up in the payment processing system, we’d argue the critical-success-factor of any good P2P solution is that it ‘just works’ and consultants, vendors and customer stakeholders find the data-entry painless.
That’s why Simplify VMS, HIRE, and TTM are mobile-enabled. They use very easy to use, intuitive forms that simplify submitting timesheets or expenses, signing off approvals, and dealing with exceptions.