Vendor Management Systems Best Practices

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Vendor Management Systems Best Practices

  1. 1. Take Charge Best Practices for a Contingent Labor Vendor Management System (VMS) Copyright© 2008 All rights reserved. ATR International, Inc.
  2. 2. 11% of the current US workforce are contract employees. Let’s look at where we are Best Practices for a Contingent Labor VMS
  3. 3. 11% of the current US workforce are contract employees. Let’s look at where we are Best Practices for a Contingent Labor VMS That’s 15 million people!
  4. 4. These 15 million contract employees are valuable assets to the companies that utilize them. Best Practices for a Contingent Labor VMS
  5. 5. Contract Employees Provide Best Practices for a Contingent Labor VMS
  6. 6. <ul><li>Flexibility </li></ul><ul><li>Immediate productivity </li></ul><ul><li>Quick on-boarding </li></ul><ul><li>Expertise </li></ul><ul><li>Risk mitigation </li></ul><ul><li>Candidate pipeline </li></ul><ul><li>development </li></ul><ul><li>Reduced downtime </li></ul><ul><li>and much more </li></ul>Contract Employees Provide Best Practices for a Contingent Labor VMS
  7. 7. But There are Problems
  8. 8. <ul><li>Two-thirds of CFO’s do not know: </li></ul><ul><li>How much their companies are spending on contract labor, or </li></ul>2005 study conducted by Staffing Industry Analyst, Inc. Best Practices for a Contingent Labor VMS
  9. 9. <ul><li>Two-thirds of CFO’s do not know: </li></ul>2005 study conducted by Staffing Industry Analyst, Inc. 2. how many staffing suppliers they are utilizing. <ul><li>How much their companies are spending on contract labor, or </li></ul>Best Practices for a Contingent Labor VMS
  10. 10. <ul><li>In the post-Microsoft “perma-temp” era*, managing and tracking the process of acquiring contract labor has become critical. </li></ul>*U.S. Court of Appeals for the Ninth Circuit, Vizcaino v. Microsoft, May 12, 1999 There are Legal Issues Best Practices for a Contingent Labor VMS
  11. 11. And There are Massive Administrative Burdens Best Practices for a Contingent Labor VMS
  12. 12. But the VMS promise is to simplify all this. Best Practices for a Contingent Labor VMS
  13. 13. Enter VMS Best Practices for a Contingent Labor VMS
  14. 14. <ul><li>VMS = Vendor Management System </li></ul>Best Practices for a Contingent Labor VMS
  15. 15. VMS is software that facilitates the filling and tracking of contract staffing requirements. Best Practices for a Contingent Labor VMS
  16. 16. Issues Addressed by VMS <ul><li>Too many staffing vendors </li></ul><ul><li>Massive administrative burden </li></ul><ul><li>Unauthorized expenditures </li></ul><ul><li>Inability to budget and forecast </li></ul><ul><li>1099 compliance risk management </li></ul>Best Practices for a Contingent Labor VMS
  17. 17. But There are Still Problems <ul><li>According to Staffing Industry Analysts, the satisfaction rate among VMS customers is “below average.” </li></ul>Best Practices for a Contingent Labor VMS
  18. 18. <ul><li>The restrictions of an added layer </li></ul><ul><li>Under-trained or under qualified VMS staff </li></ul><ul><li>Speed is emphasized over quality </li></ul><ul><li>VMS fees born by the staffing firms </li></ul><ul><li>Reduced quality of candidates due to cost </li></ul><ul><li>pressures </li></ul>Why is Everyone so Unhappy? (more) Best Practices for a Contingent Labor VMS
  19. 19. <ul><li>Vendor neutral means a company doesn’t know who </li></ul><ul><li>their top vendors are </li></ul><ul><li>VMS is often used as a barrier to communication </li></ul><ul><li>VMS should augment the staffing process, </li></ul><ul><li>not replace it </li></ul><ul><li>Fill ratios avg. 15:1 for VMS and 4:1 for non-VMS </li></ul>Information provided by the National Association of Computer Consulting Businesses (NACCB) Why is Everyone so Unhappy? Best Practices for a Contingent Labor VMS
  20. 20. So how do you implement a successful VMS? Best Practices for a Contingent Labor VMS
  21. 21. There are best practices you can follow. Best Practices for a Contingent Labor VMS
  22. 22. Some VMS Best Practices <ul><li>Include the hiring manager, staffing vendors and VMS </li></ul><ul><li>staff in planning a VMS program. </li></ul><ul><li>Provide a means for responsive communication between </li></ul><ul><li>the hiring managers and the staffing firms. </li></ul><ul><li>Encourage quality over speed. </li></ul><ul><li>Track program performance and share it with vendors. </li></ul>Best Practices for a Contingent Labor VMS
  23. 23. <ul><li>ATR International, Inc. is a leading supplier of contract labor. </li></ul>There is much more to learn about best practices for implementing and using a VMS. In fact, too much to put in a slideshow. This is why we offer our free whitepaper to anyone who requests it. Proper VMS implementation is critical to the health and success of contingent staffing. For more information about VMS Best Practices, please login to our Resource Center for a free copy of our whitepaper. We look forward to helping you. Copyright© 2008 All rights reserved. Best Practices for a Contingent Labor VMS

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