As companies strive to assess their labor force, more and more are turning to the contingent workforce to provide key skills, close gaps and drive competitiveness as they hone in on cost savings and business improvement opportunities. When they do so, it becomes readily apparent that they can’t just jump in blind and think that they can manage an entire workforce without some type of technical assistance in the form of a Vendor Management System (VMS) to keep a watchful eye on the workforce, vendors and spend.
There’s an old saying: If you don’t know where you’re going, any road will take you there. That’s just as true in business as it is on the highways and byways. As more companies decide that a VMS is no longer a luxury but a necessity, they need to build a business case to win over the decision-makers. Here’s a broad overview.
Once you have a sound business case developed, you can make a calculated recommendation to support it. You should include why the recommendation makes sense versus the alternative (no VMS), and take into account all of the relevant factors. You must articulate the business goals and objectives and document all of the factors that may have an impact on the decision. For more details, read our whitepaper, “Building a Business Case.”
Additionally, at the conclusion, you will ideally present a list of next steps and how to move forward. This should focus on executing the recommendation through narrowing it down to your top three VMS providers, requesting demos from each provider and going through the due diligence phase.
This video gives you a quick rundown on how to build a business case for a VMS:
By going through the process and building a rock-solid business case, you will know where you’re going…and only one road will take you there.
Does your business case cover all of these considerations?
As you rightly said, a VMS provides a client with great control over their use of contingent workers, they get to enjoy complete transparency and visibility over how their contingent worker program is operating. It streamlines the processes and manages compliance requirements and also brings in cost savings.
So, a business case for a VMS needs to keep in mind that the cost of a VMS depends on the model chosen and while a vendor like DCR bears the entire administrative cost of the program and most of the implementation cost; the actual cost would depend on the number of integrations required, customization factors and other bells and whistles.
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