According to a study, many companies believe that it is vital to use workforce analytics, and only eight per cent believe that their organization is good in this area. But when it comes to contingent workforce management, talent analytics become hard.
The reason behind this is that contingent workforce management is a place where gig workers, staffing suppliers, and managed service providers create millions of data points for your company.
So you have to make sure that your organization makes the most of workforce data to create a successful contingent workforce management program. In this case, a vendor management system came into action. In this article, we’ll discuss almost everything about VMS and how it will benefit your contingent workforce management program.
What is a vendor management system?
A vendor management system is a software that allows your company to manage your entire contingent workforce hiring process from initial contract to final closure in an easy-to-use solution.
A VMS acts as a mechanism to manage and procure contingent workers in your company.
It streamlines every step associated with sourcing, acquiring, managing and paying temporary workers.
This system will allow your organization to collect requisitions from managers.
Moreover, it will facilitate contingent workers, automate transactions, store and collect data from every step of your hiring process.
The system will also let your company collate metrics such as spend tracking, candidate information and invoice data.
Nowadays, many companies are using this VMS system to manage their independent talent pool.
As a result, it will help them to manage and optimize their temporary workforce.
- Easy vendor onboarding:- The system will let you register vendors quickly and easily. You can use multilingual catalogues and access vendor information instantly.
- Comprehensive vendor rating:- You can rate your vendors using key performances like delivery quality and timeliness.
- Vendor self-service:- It will allow vendors to update their information and get alerts on orders.
- Quick vendor screening:- It will let you retrieve and verify supplier data.
- Corrective actions:- It will let you initiate corrective action plans.
How vendor management system will benefit your contingent workforce management program
Your company can automate labour-intensive tasks and hiring management strategies with this system.
However, this system will help your business to streamline every step of your temporary workforce.
Below, we’ll show you how your contingent management program will benefit from the vendor management system.
You must agree with me that contingent management programs can be complex.
Your company will be left with fragmented processes leading to rogue spending.
However, using this system, all the steps of your hiring will go through a transparent route.
Moreover, the HR and procurement professionals across your company will ensure a single and company-wide approach.
As a result, this example will give your company complete visibility.
When hiring and managing temporary workers, your procurement team must look for a wide range of metrics and data.
Not only does it will waste your company’s valuable time, but it will also result in costly errors.
In this case, VMS comes into action in automating this entire process. Your company can manage all these tasks in one easy-to-use solution with this system.
3.Build for the future
If your organization is in an industry that experiences season demand, your workforce objectives must be changing.
So that’s why your company needs to build a talent pool that can tapped. In this case, VMS will help your organization to store the data of highly talented workers.
Moreover, it will let your company identify quality candidates and reduce the time to hire.
4.Great control overspend
Remember that lack of control over the contingent management program will lead your business to end up overpaying.
As a result, it will affect your business’s profits and margins. In this case, a vendor management system will provide you with the reporting and analytic tools.
These tools will help you to identify where you’re overpaying or underpaying your temporary workers.
It is not an easy task to implement vendor management into your business. That’s why you have to plan, configure and choose the right one to support your management objectives.
A VMS will allow you to streamline various business processes and transactions in a one-user-friendly solution. So now, look for the right VMS solution for your company to benefit your contingent workforce management program.