As I listened to last week’s SIA Staffing Industry report webinar, I was extremely surprised to find them reporting that the penetration of Vendor Management Systems (VMS) has stalled at about 77% over the past 3 years but the spend flowing through the Vendor Management System has risen sharply. Surprised because, from where I sit, I can only see my colleagues working extremely hard churning out new proposals in response to companies seeking a VMS solution. That naturally had me wondering whether companies with an existing Vendor Management System are going out to bid for a new one and, if so, what exactly are they looking for? Have we reached the point where every single VMS offers the same functionality and companies are struggling to find differentiators? As the use of temporary workers continues to grow, how must a VMS evolve to support the changes that come with that growth? Is it possible that the VMS selection process is so complicated that companies are disappointed with the outcome, forcing them to continuously reconsider the decisions that they have made?
Selection Criteria for a Vendor Management System
Let us look at the selection criteria for choosing a VMS. Of greatest importance: the value a VMS could bring to the management of your staffing needs. A carefully designed process will enable you to take your pick of the vendors and their offerings. Follow this list step by step:
VMS technology is constantly changing. Great strides have been made in supporting project-based services, multi-national programs, industry-specific requirements, and regulatory compliance. Products differ in strengths and weaknesses. To find the right system for you, look beyond the industry giants and focus on the alignment between your top priorities and the strengths of the system under consideration. Take a holistic view, also considering the vendor’s customer service track record. Once you have made your selection, you can then move into the intensive phase of negotiating the Service Level Agreement, communicating with your contingent workforce ecosystem and implementing the system.
We’re interested in your experiences with Vendor Management Systems. Share with us the one question you wish you had asked before selecting your current system.
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