What is the meaning of a VMS?
VMS is the abbreviation for Vendor Management System. A VMS is a software application that solves a common problem for organizations: finding, hiring, on- and offboarding temporary, external workers. With a Vendor Management System an organization maintains an overview of the hiring process.
What does a VMS do?
A VMS manages the hiring process through one integrated solution. When multiple parties are involved in the recruitment, selection and on- and offboarding of employees, there is a lot of room for miscommunication and inefficient processes. A VMS is nothing more than a portal through which the complete management of requests, offers, contracts, dossier creation, time registration and invoicing can be supported.
The system provides organizations with real-time insight into the hiring process, enabling managers to continuously monitor supplier performance through management reports. This allows managers, at the push of a button, to see the progress of the hiring process and determine whether they need to make adjustments.
The benefits of a VMS
Organizations can achieve a streamlined workflow with a VMS. A VMS offers the following advantages:
1. Control over the hiring process
A VMS makes it possible to monitor all steps within the hiring process via one solution. This way there are no missing emails, purchase order numbers, or confusion about the correct rate. The HR, Procurement and Finance departments immediately know the status of a request.
2. Optimization of administrative and financial processes
When hiring external staff, a lot of information must be recorded: think of a curriculum vitae, a copy of an identity document, and a certificate of conduct. With an eye to compliance and privacy, it is important that these documents are stored centrally. Through a VMS, the required documents can be requested during an application or hiring and then centrally stored with the assignment or candidate. It is also possible to verify the validity of the documents within the system. A VMS relieves the administrative workload of the HR and Finance departments. In addition, the (legal) risks are made manageable and transparent.
3. Supplier management insight
Organizations often work with multiple suppliers. A VMS provides insight into the number of suppliers and the associated agreements. The software provides insight via reports into how a supplier performs. The tool shows, for example, the offer ratios and turnaround times; this way the Procurement department has control over the (price) agreements that have been made. These data lighten the buyer's work and offer opportunities for potential cost savings.
4. Integration of existing ICT landscape
During the procurement process and the hiring process, different IT systems are often used. A VMS becomes part of the ICT landscape. Thus the data from the IT system – for example a purchase order or an employee number – is exchanged with the VMS for the correct processing of requests. A VMS makes it possible to implement targeted process improvements.
