Vendor Management System (VMS)

    What is a VMS?

    A Vendor Management System (VMS) streamlines and automates the many processes that support the acquisition, management and payment of a business’s external workers, including their contingent workforce and services providers.

    But what does that mean?

    Vendor management systems are pieces of software that help bring the client and recruitment agency together. In this instance, the recruitment agency is a vendor that is providing staffing solutions to the client. Within a vendor management system, the client will upload the job requirements, the staffing suppliers will submit talent for those roles, and the client will then review them to find the best talent for each role.

    Key features of a vendor management system

    A recruitment vendor management system is a useful tool that helps organisations optimise their processes so it’s important to find a suitable vendor management system for your business. It’s important to look out key features such as:

    Advanced Analytics

    Within a vendor management software for recruitment, there are vendor performance metrics, such as, candidate quality, time to fill, candidate retention rates, successful placements, and client satisfaction scores. All of the metrics found in a VMS software help to evaluate time spent, cost savings, compliance, quality and quantity by generating data driven reports.

    VMS Automation

    With VMS automation, staffing suppliers and clients can efficiently work together to manage the contingent labour workforce or permanent hiring process. VMS software can heavily reduce the amount of manual tasks by automating job posting and distribution, candidate screening and compliance, workflows, act as or integrate with an applicant tracking system, give businesses status updates, and generally increase the team’s speed throughout the hiring process.

    Centralised Database

    One of the key features of VMS software is that it provides a central place for multiple businesses to connect and streamline business processes together. This allows for all data, contacts of your contingent workers, and documentation to be in one place. As more contingent workers are needed, clients and hiring managers can upload the information to the VMS and staffing suppliers can then go through the procurement processes to ensure that the right talent is found.

    Why use vendor management solutions?

    Recruitment firms can reap the benefits of using vendor management systems in order to make their staffing services more efficient, but that’s not all. A few of the other key considerations that make VMS systems beneficial to staffing agencies are:

    • Enhanced organisation – by having a centralised database, staffing companies are able to conduct business in a more organised fashion.

    • Data driven decision making – with analytics found in a vendor management system, recruiters can gain insights into their recruitment strategies and discover how to improve it.

    • Cost savings – by utilising automation, recruitment companies can reduce their administrative costs and optimise their workflows.

    • Enhanced candidate experience – a VMS makes it easier to contact candidates and therefore improves their experience with enhanced communication.