Most VMS providers today work hard to provide analytics and reporting features in their software and take particular pride on the way their software differentiates itself from its competitors through this. Unfortunately, most VMS deployments are failing to optimize on getting the most out of what is on offer…
Track it Smartly:
The onus of deploying a VMS – to intelligently track and analyze information and spend to meet strategic needs – rests with the internal IT and HR departments of the client and their knowledge and skills in optimizing upon the functionality of the VMS. These departments need to be aware of the VMS’s capabilities while having a clear knowledge of their own requirements. The analytics across the information repository held by the VMS tracking services suppliers as well as spend on contingent labor is mostly not leveraged by either the HR or IT teams for use in strategic decision making. Some of them are known to run a periodic report (probably to assuage their anxiety at not utilizing the features of the VMS) and keep it on file. Most do not bother with looking at the analytical reports and do not utilize them as tools which enable a deep understanding of the situational realities which form the basis for future planning and action. The smart tracking function which continuously and comprehensively provides the decision makers with data on what work is being done, by whom and how well at the various locations of the company will boost the overall performance of the organization – while the knowledge of being monitored in real time on an ongoing basis provides a tremendous motivation to the employees to perform even better.
Measure it to Manage it:
For most companies, HR comprises the largest of all its expenses under different heads and the ability to analyze and understand the cost of one’s contingent workforce has been known to provide a significant boost to productivity. By helping to provide a quantified report on a soft element like the human component of the organization and making it measurable, the VMS makes it manageable. The whole exercise goes a long way to refine and improve the workflow and make it more productive than ever before.
Earlier versions targeted basic information on spend without real insight and visibility into the patterns of spending, behavior and performance of suppliers and internal compliance aspects and issues like maverick spend. Today’s VMS provides not only a view into the components of total spend but also the trend in purchase prices, bill rates, effectiveness of supplier utilization across cost centers and locations. The opportunities offered by the analytics feature of a VMS across the various data sets are potentially infinite but most HR and IT departments seek about a dozen or so reports providing very basic and common parameters without visualizing any other opportunities extending beyond the commonplace and ordinary!
No more Lacunae:
The trend today is towards using analytics contextually to get the VMS to provide data analyses which are usable to compare and contrast services and people against goods and processes and derive the capability to utilize the report for decision-making in a credible manner. To this end, it is important for the stakeholders to identify data that needs to be drilled into and the unique combinations of data/information in the right context which would prove to be of real assistance to the actual decision makers. Till now, people were only drilling down into data on bill rates for similar jobs and benchmarking them to decide upon the ideal bill rate for the specific geography. Soon, the data can also be mined for insights into which type of candidates rejected the offer, which ones failed to perform to expectations and which ones exceeded expectations – and help to establish some dependable correlations to the way they were sourced.
As the users grow more comfortable with this concept and learn to utilize the reports better – the analytic features could also turn more complex and drill down through various levels and across various data sets from internal as well as external sources; and measure performance against benchmarks to provide strategic inputs into managing contracts better.
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