If your business is operating across multiple business units and employs temporary labor then managing an extended workforce can be challenging. Most businesses rely on traditional methods for managing contingent labor and they encounter a lot of challenges related to rising costs, limited visibility, and compliance breaches.
This is where a vendor management software can be a game-changer.
In this post, we will discuss the basic elements of vendor management system and help you discover ways to streamline flexible workforce management.
Let’s get started by understanding the basic concept of a vendor management software.
What is a Vendor Management Software?
A vendor management software is a unified platform that unifies all aspects of contingent workforce to give you better control and visibility.
In simple words, it is a software platform that enables businesses to manage and automate the processes involved in procurement, payment, and overall management of external service providers.
With a VMS, you can perform multiple activities such as:
- Contingent hiring
- Performance management
- Compliance management
- Statement-of-work management
- Headcount tracking
- And a lot more…
Without further ado, let’s understand the top advantages of using a contingent management workforce software.
5 Advantages of a VMS
Here are the major advantages of using a VMS to manage temporary workers.
#1. Cost Saving
Using a VMS, a business can track and monitor budget with the help of real-time analytics. This helps prevent budget overruns. Furthermore, businesses can leverage vendor management technology to streamline hiring with direct sourcing. This helps in reducing the budget to hire a candidate by eliminating third-party staffing agencies.
#2. Risk Management
Most procurement leaders will agree that cross-border compliance is one of the biggest challenges in vendor management. This is because businesses with multiple business units spread across different countries need to comply with regional laws. This is where a business can use a vendor management software to centralize compliance. With features like automated alerts, it is possible to track compliance in real-time.
#3. Maximize Productivity
Performance management is one of the biggest advantages of a vendor management software. With real-time insights and customizable dashboards, businesses can easily track important performance metrics like hours logged, task status, payments, and more. Also, it helps identify top-performing vendors.
#4. Complete Control & Visibility
A VMS provides business leaders to gain a comprehensive overview of all vendor management activities in one place. From contingent staffing to contracting, performance management to compliance status, businesses can automate and streamline every step in the workforce management process.
#5. Competitive Advantage
Extended workforce can be the biggest asset if managed properly. With an automated and streamlined process, businesses can attain greater flexibility, maximized productivity, and acquire top-tier contingent talents to land a competitive advantage.
Wrapping Up
Vendor management is a complex process with a lot of elements associated with it. From compliance to hiring, performance tracking to SOW, every process needs proper management.
This is where the combination of an advanced vendor management software and vendor management good practices business can automate every aspect related to contingent workforce management.