Vendor Management Best Practices for Your Staffing Agencies/Vendors | DCR Workforce Blog

Vendor Management Best Practices for Your Staffing Agencies/Vendors

Vendor Management Systems (VMS) help to manage staffing vendors along with the contract workers supplied by them. Initially many staffing vendors resisted participation in a program which took all job orders online and made them interact with it through a Managed Service Provider, who then managed the total procurement process and acted as an intermediary between the client and the staffing vendors. However, the efficiencies brought in by the program, the ease with which invoices get paid and the way high performers are given more business opportunities have all converted staffing vendors to become willing participants in a VMS-managed contingent workforce program.

Can your VMS make the staffing vendors willing stakeholders in the overall program instead of being unwilling participants? When acquiring a VMS, make sure that you adopt some best practices that make the lives of staffing vendors easier and provide them with exceptional levels of support designed to melt their resistance away. Take a look at these best practices.

Vendor Management Best Practices

  1. Communicate Invite your staffing vendors to ask any questions they may have with regard to the changed processes to be expected post-implementation. Help them understand what they would need to do to stay informed of the customer’s requirements and what they will need to do to continue to outshine the competition. Encourage the suppliers to suggest program enhancements or escalate issues which could impact their ability to meet program goals, through channels which enable escalations and feedback.
  2. Clarify Let your key suppliers learn about the program and seek their reactions. Discuss the causes of their greatest concern, and work to make them comfortable with and committed to the program. Recognize that they may be worried about the rates, their proprietary rights over candidate information submitted, access to future opportunities, assurance of a neutral  changed relationships with your company, increase in costs with a supplier-funded VMS, the need for training to adopt the program or any other factors which could make them resist the program.
  3. Reduce resistance Your hiring managers may also be uncomfortable about losing their favorite vendors and have other concerns about the new way of working. Whittle down the resistance by making them understand the benefits and providing them with time and training to accept the switch over. To illustrate, internal HR personnel can identify ways to strategically increase the program’s performance levels by taking advantage of the reporting and analytics capabilities offered by the VMS.
  4. Fair opportunity Ensure that the job requirements and consideration of candidates are distributed through a balanced, fair, objective process.
  5. Incentivize Offer participants reasonable incentives such as lower costs, better business opportunities or ability to achieve high productivity on desired parameters, which the VMS makes very easy to track and evaluate. A VMS that reduces administrative costs associated with billing and other activities is always a welcome addition to any staffing process.
  6. Support Supplier training and ongoing support are essential and non-negotiable. Ensure that the VMS provider will provide technical and user support to the internal and external users of the program through adequate service level agreements. Help must be at hand to solve problems, resolve issues, reduce the need for additional and repetitive work and get the VMS to work with the supplier’s existing systems.

These vendor management best practices help to reduce the resistance to VMS adoption and ensure a high performance from the suppliers and help both sides to enjoy a mutually supportive relationship and achieve their goals for the contingent workforce program.

Do you have any other best practices to add to this list? Please share below!

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.