Contingent labor is an important and rapidly-growing segment of the modern workforce. The PeopleFluent® Vendor Management System (VMS) manages all non-employee labor and services procurement, providing you with true visibility into cost, compliance, risk, and efficiency. The vendor management system is a critical component of PeopleFluent's total talent solution.
Common Characteristics –
Tactical –
Managed- integrated with other system
Strategic- contributes to business decisions, includes all worker types. Most straddle between Tactical and Managed.
Goes beyond external- drug screening and background check
Look at internal processes that prevent things from moving forward- documentation and who is responsible as well as auditing
Busiest part of a VMS
How to determine cost savings- rate cards need to be updated on a regular basis
All suppliers should provide market rate cards per role. Look at the supplier rate cards to ensure placement and cost relevance and cost savings
Which is better? Market rates change all the time so hard to build a current rate card. A markup prevents a supplier to push the rate down and allows for even footing. VMS allows for a competitive system and bill rate. How to benchmark outside of your suppliers? MSP will provide that data as well as a VMS may have access to scrubbed data across different geographies. The final negotiation is where you can realize cost savings by reduced hourly rate.