{"id":5451,"date":"2019-03-15T12:33:52","date_gmt":"2019-03-15T12:33:52","guid":{"rendered":"https:\/\/zinavo-clientupdates.in\/vasim\/pragna\/?p=5451"},"modified":"2024-06-10T16:27:32","modified_gmt":"2024-06-10T16:27:32","slug":"vms-best-practices","status":"publish","type":"post","link":"https:\/\/pragna.net\/old\/vms-best-practices\/","title":{"rendered":"VMS &#8211; Best Practices"},"content":{"rendered":"<h5><strong>Vendor Management System<\/strong><\/h5>\n<p>Can you answer these questions?<\/p>\n<ul>\n<li>How many contractors do you use? How many suppliers?<\/li>\n<li>Are your labor rates at true market price or better?<\/li>\n<li>What percentages of your contract spend goes through preferred suppliers?<\/li>\n<\/ul>\n<p>Drawing a blank? If you are not sure what the answers are, that\u2019s OK. It\u2019s likely that you are either new to using a vendor management system or you are currently researching <a href=\"https:\/\/pragna.net\/old\/solutions\/recruiting-solutions\/vms-solutions\/\">VMS solutions<\/a> for possible implementation. If you\u2019re not familiar with Vendor Management System solutions at all, you\u2019re in for a treat.<\/p>\n<p>Today, more than 45 percent of the world\u2019s total workforce has become contingent workers. That includes temporary workers, independent contractors, SOW-based labor, and freelancers.<\/p>\n<p>Most organizations report that they expect their need for non-employee workers to grow more in the near future. The problem is that every other organization is looking for non-employee workers to grow their businesses. So, how can you source and manage your extended workforce effectively and efficiently so that you don\u2019t lose the war for talent?<\/p>\n<p><strong>The short answer: Vendor Management System.<\/strong><\/p>\n<p>The way organizations employ workers has shifted away from the full-time employees of yesteryear to a workforce of contingent workers that offer their specialties on a project-by-project basis.<\/p>\n<p>The contingent workforce has significant benefits\u00a0for the plethora of companies adopting this modern way of hiring. However, those who are hiring contingent workers but are still using manual processes and outdated automation tools to manage their workforce, will not be realizing those benefits, and could in fact be losing out.<\/p>\n<p>This is why a\u00a0vendor management system (VMS)\u00a0is fundamental to the success of your contingent workforce management strategy.<\/p>\n<p>The first step is to understand the five core benefits of a VMS\u2014for both procurement and HR. Those benefits include:<\/p>\n<ul>\n<li><strong>Cost Effective:<\/strong> Contingent workforce expenditures rank among the top spend categories in most organizations. Perhaps more troubling is the fact that most contingent labor is not taken into account when conducting financial planning, forecasting, and budgeting. That means that you may be spending more than you should. In fact, VMS user\u2019s report 80 percent higher year-over-year cost savings compared to non-<a href=\"https:\/\/pragna.net\/old\/solutions\/recruiting-solutions\/vms-solutions\/\">VMS organizations.<\/a><\/li>\n<li><strong>Clarity:<\/strong> Lack of clarity is one of the key reasons organizations do not know what they are spending on contingent workers. Ardent Partners research indicates that organizations only maintain visibility into 45 percent of their total contingent workforce.<\/li>\n<li><strong>Compliance:<\/strong>When it comes to contingent workers, if you do not know \u201cwho\u201d is doing \u201cwhat,\u201d \u201cwhere\u201d they\u2019re doing it, and \u201chow\u201d it is being done, you are setting yourself up for failure. Two important examples that come to mind are misclassification of non-employees and allowing unauthorized individuals access to systems or facilities.<\/li>\n<li><strong>Quality Matters:<\/strong> The entire goal of leveraging the contingent workforce is to attract, retain, and utilize the best possible talent. A VMS can reduce time to fill and expand your access to quality talent. Some vendor management systems even allow you to\u00a0source talent directly from the VMS!<\/li>\n<li><strong>Efficiency:<\/strong> A VMS also drives efficiency by allowing you to automate procurement cycles, consolidate billing, and ensure invoice accuracy. It also makes it easier to measure and monitor your supplier performance. That will help ensure process and performance consistency.<\/li>\n<\/ul>\n<h6><strong>Remodeling Vendor Management System Requirements<\/strong><\/h6>\n<p>Today\u2019s organizations increasingly need VMS software to manage both contingent workers hired as individuals and external companies doing project-related work. Many also have a greater need to stay compliant with international labor and tax laws surrounding global use of contingent staff.<\/p>\n<p>HR and procurement leaders should use some key criteria if deciding to switch VMS providers or invest in a new system<\/p>\n<ol>\n<li><strong> Support for Statement-of-Work Contracting<\/strong><\/li>\n<\/ol>\n<p>One of the keys buying considerations today is whether the VMS will be able to support you as you move from using it for the selection and tracking of contingent workers, to the selection and tracking of project consultants<\/p>\n<p>Managing project work is more complex, largely because of the different pricing mechanisms involved. Payment in these arrangements is not only time-based, it might also be milestones-based, deliverable&#8217;s \u2014 based or tied into performance on service level agreements. You\u2019d like to be able to use the same software tool when you have the need for an individual contractor as well as a consulting company.<\/p>\n<ol start=\"2\">\n<li><strong> Ease of Integration with Existing Systems<\/strong><\/li>\n<\/ol>\n<p>A VMS should integrate well with your existing technology platforms or processes for managing contingent staff. Many companies have reaped benefits from integrating its VMS with a core human resource information system, purchase order request system, supplier relationship management system and a security system for contract workers.<\/p>\n<p>The integration reduces multiple steps from multiple systems and put them all into one easy-to-use, one-stop platform.<\/p>\n<ol start=\"3\">\n<li><b> Robustness of Analytics Tools, Bench-marking\u00a0Data<\/b><\/li>\n<\/ol>\n<p>The quality of reporting tools also separates <a href=\"https:\/\/pragna.net\/old\/solutions\/recruiting-solutions\/vms-solutions\/\">VMS providers.<\/a> One key metric is a time-and-tenure report that ensures contingent workers don\u2019t work beyond the specified limit for co-employment.<\/p>\n<ol start=\"4\">\n<li><strong> Vendor Neutrality<\/strong><\/li>\n<\/ol>\n<p>Vendor-neutrality means the system isn\u2019t provided by a VMS owner who will steer you to contingent resources, which may not always be the best or most cost-effective. This can be a concern if the VMS provider also has other contingent<a href=\"https:\/\/www.linkedin.com\/pulse\/staffing-success-101-attract-top-talent-building-strong-0xazc\/?trackingId=LHIpI%2Fc5QMqAZK5BJYYg0Q%3D%3D#?lipi=urn%3Ali%3Apage%3Ad_flagship3_pulse_read%3BwIxlJ%2F7LRiuwp4ui5JHHNQ%3D%3D\" target=\"_blank\" rel=\"noopener\"> staffing<\/a> services under its organizational umbrella.<\/p>\n<p>Hopefully, we\u2019ve covered all the basics of vendor management systems and you have a good idea of what to look for in a VMS.<\/p>\n<p>At <a href=\"https:\/\/pragna.net\/old\">Pragna<\/a>, we have the experienced team who understand the fast-paced VMS environment and can submit potential candidates within a few hours of receiving the job orders. We have a good track record of supporting many customers with VMS support services and understand the nuances of working with such a system.<\/p>\n<p>We at <a href=\"https:\/\/pragna.net\/oldpage\/contact\">Pragna<\/a> expertise in providing <strong>Customized RPO<\/strong>, <strong>Offshore Recruiting Service<\/strong> pertaining to all the Industry verticals, We strive hard to apply best practices, proven methodologies, and additional levels of diligence to improve the quality of our services.<\/p>\n<p>A blend of ground-breaking ideas, detailed approach, and quality-oriented delivery has positioned us as a leader in the\u00a0<a href=\"https:\/\/pragna.net\/old\">Recruitment process outsourcing (RPO)\u00a0<\/a>industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vendor Management System Can you answer these questions? How many contractors do you use? How many suppliers? Are your labor rates at true market price or better? What percentages of your contract spend goes through preferred suppliers? Drawing a blank? If you are not sure what the answers are, that\u2019s OK. It\u2019s likely that you [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[64,106,102],"tags":[],"class_list":["post-5451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-recruitment-technology","category-talent-acquisition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vendor Management System Best Practices: Optimize Your VMS | Pragna Global RPO Company<\/title>\n<meta name=\"description\" content=\"VMS Best Practices: Learn the top strategies to optimize your Vendor Management System and enhance your organization&#039;s efficiency.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pragna.net\/old\/vms-best-practices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vendor Management System Best Practices: Optimize Your VMS | Pragna Global RPO Company\" \/>\n<meta property=\"og:description\" content=\"VMS Best Practices: Learn the top strategies to optimize your Vendor Management System and enhance your organization&#039;s efficiency.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/pragna.net\/old\/vms-best-practices\/\" \/>\n<meta property=\"og:site_name\" content=\"Pragna Global RPO Company\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-15T12:33:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-10T16:27:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/pragna.net\/old\/wp-content\/uploads\/2019\/03\/vms.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Raghu Nandhan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Raghu Nandhan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/pragna.net\\\/old\\\/vms-best-practices\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/pragna.net\\\/old\\\/vms-best-practices\\\/\"},\"author\":{\"name\":\"Raghu Nandhan\",\"@id\":\"https:\\\/\\\/pragna.net\\\/old\\\/#\\\/schema\\\/person\\\/87368c0bb699b4e534573f857d4a20a5\"},\"headline\":\"VMS &#8211; 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