How to Choose a Vendor Management System (VMS)

If you are shopping for a vendor management system (VMS) to help improve your contingent staffing spend, consider the following when choosing VMS Software:

Software Functionality

Job order management.Does the system efficiently allow job orders to be entered online and optionally routed for approval? Does it control which staffing vendor(s) receive the job order and when? Focus on systems with mature order management processes.
Automated on-boarding. Once hired or contracted, how well does the system automate on-boarding tasks like security badge, email address, and computer desktop? Can the system auto-alert the hiring manager of the match. Mature on-boarding systems assure successful starts for employees.
Online time-tracking. How well does the system allow for online time entry? Does it accommodate rapid entry of project codes based on classification? Report on that time on a project basis? Integrate with in-house time-clocks? Consider systems that best integrate with your accounting and operational reporting needs.
Supplier performance. How effective are the performance management reports? How well do they tell who offers the best candidatesat the best rates? Consider favorably systems with mature online reporting.

Vendor-neutrality

Vendor-neutral. Does the system offer a vendor-neutral mode of operation? Who controls the system? A staffing company? An independent managed service provider? Your organization? How well does the system let you control workflows and neutrality in regards to staffing vendors? If you need or want vendor-neutral, make sure the system offers it.
Client-portal. Does the system offer a client portal or 'primary-provider' mode? Client-portal based systems allow a primary provider to handle the bulk of your staffing needs while allowing the flexibility of third party organizations aiding in fulfillment. Advantages: much lower cost and faster start-up.
Dual vendor-neutral/client-portal. Does the system allow you to seamlessly transition from client-portal mode to vendor-neutral? This is the ultimate in convenience, speed and cost.

Service provider

Familiarity. How well does the service provider understand and execute with your organization?
Staffing expertise. How well does the provider understand the staffing industry?

Technology platform

Multi-tenant. How well does the system handle your organizational structure? Does it allow a hierarchical/multi-tenant structure that lets different departments or subsidiaries operate under workflows that make best sense for their organization?
Scalability/continuity. How well does the system scale? What business continuity and service agreements does the provider offer?
Anywhere access. Does the system support access from mobile phones, internet browsers, time-clocks, and EDI/electronic interfaces?

Convenience

Implementation cost. Can the provider offer a basic starter system that requires no start-up cost? Can the provider configure it to conform to your needs or does that require reprogramming? Can users learn the system quickly? Does the system conform to usability standards - for example, does Microsoft certify it to provide a best practice user interface.
Execution. Can the provider execute on data conversions from existing systems? Does the provider offer training programs including online training tutorials.
Free trial/demo. Does the provider offer a free-trial or demo version of the system?

Note: This how-to article is one of several publications available from Tempworks Software on temporary staffing management.Tempworks first implemented a limited vendor management system for Manpower in the early 1990s to streamline processes for its client, Herman Miller.

Today, staffing company clients of Tempworks provide the managed service behind Tempworks VMS for hundreds of organizations across North America.

We look forward to serving your software, funding and back office needs. Call us at 1-877-452-0326 or request more information today!