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HCMWorks Insights

Selecting the Right Vendor Management System in 2021

Posted by Julia Fournier on 16 Mar 2021

Vendor Management Systems (VMS) are commonly used across all industries to help streamline the management and procurement of various staffing services. Vendor management is embedded in how a company operates and interacts with its employees, frequently bringing together multiple services and solutions needed to optimize worker productivity.

While most solutions offer baseline functions, others integrate adaptive strategies into your business. With a myriad of vendor management solutions to choose from, it can be difficult to navigate all the options without knowing exactly what to look for. Just Googling “Vendor Management Solutions” will turn up enough providers to give anyone a headache. By narrowing expectations and elevating standards, choosing a VMS becomes much less of a hassle. Three aspects to keep in mind when searching for a new VMS are adaptability, price, and compatibility.

Adaptability

Adaptability is key to finding the right VMS with the necessary flexibility to accommodate your business needs. The right management solution will grow and change with the company, and innovation is a major part of that. It is important to continuously evaluate your processes, services, and needs to ensure that the VMS you use is the one that best suits your company. The way in which you manage vendors will constantly change and adapt as your business evolves.

Efficiency

It goes without saying that budgeting is a primary factor in VMS selection. Every company is looking for ways to reduce costs, including when developing new vendor management strategies. The right VMS will keep an eye out for vendor price reductions as well as methods for combining vendor offerings to minimize spending. An example of this would be a VMS which keeps tabs on vendor price changes and vendor services. If a company currently uses two vendors to provide a service that can now be provided by a single vendor, an efficient VMS can provide insights on how to consolidate services and reduce costs. Working with a Managed Service Provider (MSP) can help you assesses your options and selects suppliers according to your specific needs.

Compatibility 

Managing mutually beneficial partnerships with vendors are an integral part of business relationships. Selecting a VMS that facilitates relationship building can benefit your brand in unexpected ways. Cultivating a compatible relationship between a vendor and a company enables better communication, cost savings, favorable vendor deals, ethical behavior, reliability, and integrity. Understanding your vendor provides insight into how they operate and what you can expect from them. By understanding how they operate, you can collaborate to navigate deadlines and tailor solutions to your unique needs. This leads to timely delivery and relationships built on trust and mutual respect.

Working with a Neutral Third Party

Finding an adaptable, efficient, and compatible VMS will not only help minimize risk, but also save you money, time and stress. Partnering with vendor-neutral industry experts, such as HCMWorks, can help you find the right solution for your contingent workforce management program. We support our clients throughout the entire process to from selection to on-going support. Contact us to learn more about how the right VMS can help streamline your business processes when it comes to managing a contingent workforce.

Tags: VMS

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