VMS or Vendor Management Services is an external workforce solution for business to manage its contingent workforce, both temporary and permanent. The right VMS system can help with onboarding, staffing, contingent staff feedback ratings and invoice handling. These service systems can be internet based or they can be a combination of staff and computer systems. They are particularly used by companies who have large temporary staffs.
Benefits of VMS
Some of the benefits to business of a good VMS system are:
- Reduced total costs of procurement
- Enhanced vendor performance
- More efficient purchasing
- Ensures legal obligations are met in staffing
- Helps protect your brand
How a VMS System Helps Reduce Risk
- Effective tracking and higher visibility can mitigate supplier risk and ensure regulatory compliance.
- Using the right system can save your company administrative fees and avoid penalty costs.
- The VMS system can identify and reduce vendor data security breaches.
- Third-party vendors who are a credit risk can be identified.
An effective vendor management services system can help a business identify and manage risk while minimizing the costs and staffing that would be involved in direct oversight. The best systems are designed to reduce costs, identify and manage risk, and improve vendor performance.