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HCMWorks Insights

What You Need to Know About MSPs and Vendor Management Technology

Posted by HCM Works on 27 Jul 2020


The contingent space is changing significantly. It’s up to CEOs, CFOs, and CPOs to understand their evolving workforce in order to ensure that their companies achieve their unique workforce targets. 

Your on-demand, non-permanent workforce is a dynamic ecosystem - one that is subject to change and evolve at any moment. You must be prepared in order to ensure continued cost savings, efficiency, and productivity.

The contingent workforce presents its own challenges, particularly when it comes to management.

When different hiring managers and department heads use different vendors to source their talent, using different processes, services, and price points, the result is a largely disjointed and ineffective model that is riddled with inefficiencies and inconsistencies that affect your company's bottom line.

This contingent workforce management model will only lead to suffering supplier relationships and missed opportunities for access to top talent.

The role of an MSP

As the contingent workforce continues to grow at a rapid rate, it becomes more critical than ever for your company to get a solid grasp on how to effectively manage your on-demand workers.

Turning to a managed services provider (MSP) can allow you to optimize and streamline your contingent workforce management. As this workforce grows, it becomes more complex, and as such, it requires a greater level of expertise. An MSP can provide that. 

HCMWorks Case Study on talent acquisition

An MSP can analyze and design your program, review and re-engineer your process, optimize your supply-base management, implement change management, and create active cost management that will result in better value for your dollar.

An MSP can take all of your people-based transactions and create a powerful marketplace where you can create a competitive bidding process, consolidate spend, and save an incredible amount of money all while exceeding services.

What about vendor management technology? 

How does an MSP provide your organization with an ROI? Apart from its valuable experience and expertise in workforce management, it also uses vendor management technology. With the right technology, your managed services provider can create greater efficiencies, higher productivity, increased compliance, and high cost savings through increased visibility.

A vendor management system (VMS) can automate and streamline the processes that supports the sourcing, acquisition, management, and payment of your on-demand workforce. This includes;

  • requisitions;
  • approvals;
  • time management and scheduling;
  • expense management;
  • payments;
  • and reporting.

When you have big data working on your side to track, measure, and analyze your processes and your workers, you can make more informed decisions, save time, and save money.

The importance of partnering with a vendor and technology neutral MSP

Not all vendors or technologies are created equal. Some will allow for better results than others, and it’s critical to have a technology and vendor neutral MSP that will make informed decisions based on your unique business culture, needs, and goals.

MSPs that remain technology and vendor neutral can ensure that all decisions are made to support your exact needs and to add the most value to your business.

Having the right vendor management system is critical for your ROI. A neutral MSP will not own or operate any specific system or technology. Rather, it will use total objectivity when determining which platform your company should use.

Transform your contingent workforce management strategy today

An effective vendor management system includes the support from a truly neutral managed services provider as well as the right technology.

When you let the experts handle the workforce management processes and the technologies required for you to see the best ROI, you can have the best people, the best practices, and the best technology working to achieve your goals.

You can bring order to your contingent workforce and your supply chain in order to positively transform your bottom line - and your business.

Want to learn more? Contact HCMWorks today. Our team of contingent workforce management experts would love to answer any questions that you may have. 

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Tags: Vendor Management

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