VMS vs MSP – Choosing the Right Solution for Your Contingent Workforce

In recent years, there has been a significant shift towards contingent workforces. For businesses like healthcare facilities and call centers, hiring temporary workers has become easier and more cost-effective. But how does a company best manage its temporary staffing needs? In today’s dynamic business environment, managing a contingent workforce efficiently is essential. Businesses have two primary solutions to consider: Vendor Management Systems (VMS) and Managed Service Providers (MSP). Both play critical roles in contingent workforce management, but they serve different functions and offer unique benefits. Choosing the right system is crucial for effective and efficient workforce management, impacting cost, control, and overall operational efficiency. Understanding these differences will help you make an informed decision tailored to your company’s needs.

What is a Vendor Management System (VMS)?

A Vendor Management System (VMS) is a software-based platform designed to help businesses manage their procurement and staffing services. It automates various recruitment processes, providing a streamlined approach to handling contingent labor.

Key Features of a VMS:

• Automation of Recruitment Processes: Automates tasks such as job posting, candidate tracking, and onboarding new hires.
• Real-Time Analytics: Provides insights into workforce performance, helping businesses make data-driven decisions.
• Direct Communication Channels: Facilitates seamless communication between the company and preferred staffing agencies.
• Comprehensive Vendor Management: Manages relationships with multiple vendors, ensuring compliance and performance standards are met.

Benefits of Using a VMS in Various Sectors:

• Cost Savings: Reduces administrative costs through automation and improved efficiency.
• Improved Compliance Management: Ensures that all staffing activities comply with industry regulations and company policies.
• Enhanced Operational Efficiency: Streamlines workforce management processes, leading to better resource allocation and productivity.

What are Managed Services Providers (MSP)?

A Managed Service Provider (MSP) is an outsourced agency that manages a company’s contingent labor program. MSPs handle all aspects of the staffing lifecycle, from recruitment to offboarding, providing a comprehensive solution for managing temporary and contract workers.

Roles of MSPs:

• Managing Relationships with Staffing Agencies: MSPs act as intermediaries, maintaining relationships with multiple staffing agencies to ensure a steady supply of contingent workers.
• Overseeing the Contingent Workforce: They manage the entire workforce, ensuring alignment with the company’s strategic goals and compliance with legal standards.
• Expert Handling of Recruitment and HR Tasks: MSPs bring expertise in recruiting, onboarding, and managing contingent workers, relieving internal HR departments of these responsibilities.

Benefits of an MSP Solution:

• Centralized Management: Provides a single point of contact for managing all contingent workforce activities, streamlining processes, and improving oversight.
• Expertise and Efficiency: MSPs offer specialized knowledge and experience, leading to more efficient and effective management of the contingent workforce.
• Time and Cost Savings: By handling all aspects of contingent labor management, MSPs free up internal resources and reduce costs associated with staffing and HR tasks.

Comparing VMS and MSP: Key Differences and Considerations

When deciding between a Vendor Management System (VMS) and a Managed Service Provider (MSP), it’s important to understand the key differences and factors to consider for your specific needs.

Control:

VMS: Offers greater control over the recruitment and management processes. Businesses can directly oversee vendor relationships and staffing activities.

MSP: Provides outsourced control, where the MSP manages all aspects of the contingent workforce. This can be beneficial for companies lacking internal resources or expertise.

Cost:

VMS: Typically involves a subscription fee for the software system, which can lead to cost savings through automation and improved efficiency.

MSP: Often charges based on a percentage of the contingent workforce spend, which can be higher but includes comprehensive management services.

Expertise:

VMS: Requires internal staff to manage and utilize the system effectively. Best for companies with strong internal HR and procurement teams.

MSP: Brings specialized knowledge and expertise in managing contingent labor, reducing the burden on internal teams.

Integration with Existing HR Systems:

VMS: Easily integrates with existing ERP and HR systems, enhancing data accuracy and streamlining processes.

MSP: Manages integration as part of their service, ensuring seamless operation but with less direct control by the company.

Scenarios to Consider:

VMS may be more beneficial for: Companies with a robust internal HR department, a need for greater control, and significant investments in existing HR systems.

MSP may be more beneficial for: Companies that prefer outsourcing, have limited internal resources, or require comprehensive management of a large contingent workforce.

Factors to Consider When Choosing:

Scale of Contingent Staffing Needs: Larger programs may benefit more from MSPs, while smaller, more controlled environments may suit VMS.

Preferred Level of Control: Decide if your company prefers hands-on management (VMS) or outsourced expertise (MSP).

Existing Internal Resources: Evaluate the capability and capacity of your current HR and procurement teams to manage a VMS.

Why SimpleVMS Could Be the Right VMS Provider for Your Business

SimpleVMS offers a unique solution that combines the best aspects of both VMS software and MSP provider, making it a versatile and powerful tool for managing your temporary workers.

SimpleVMS provides all the technological benefits of a traditional Vendor Management System. This includes automation of recruitment processes, real-time analytics, and comprehensive vendor management. These features enable businesses to streamline their operations, reduce manual effort, and gain valuable insights into their workforce.

In addition to its robust software capabilities, SimpleVMS also offers service and support that are akin to what you would expect from a Managed Service Provider. This means you get expert assistance with implementation, ongoing support, and help with optimizing your workforce management strategies. This dual approach ensures that you are not only equipped with the right tools but also have the necessary support to use them effectively.

SimpleVMS understands that every business is unique. The platform can be customized to meet the specific needs of your contingent workforce program. Whether you need detailed compliance management, seamless system integration, or advanced reporting and analytics, SimpleVMS can be tailored to provide the solutions you require.

By leveraging the combined strengths of VMS technology and MSP-level support, SimpleVMS helps businesses enhance their operational efficiency and optimize workforce management. This leads to cost savings, improved compliance, and better overall performance of your contingent workforce.

Ready to transform your contingent workforce management? Discover how SimpleVMS can provide tailored solutions and enhance your operational efficiency. Schedule a demo today to learn more about how SimpleVMS can meet your business needs and schedule a personalized demo.

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SimpleVMS, a Division of Avionté, Named Major Contender and Star Performer in Everest Group’s Vendor Management System (VMS) PEAK Matrix^® Assessment 2024

BLOOMINGTON, Minn.–(BUSINESS WIRE)–SimpleVMS, a division of Avionté, is honored to announce its recognition as a major contender and star performer in Everest Group’s Vendor Management System (VMS) PEAK Matrix^® Assessment 2024, a comparative assessment of 22 leading VMS providers. As employers rely more on the contingent workforce, VMS solutions are becoming more crucial as the core technology for procuring and managing contingent work. Everest Group’s VMS PEAK Matrix Assessment provides organizations with a roadmap for evaluating which VMS provider is best for them.

Krishna Charan, Vice President at Everest Group, highlighted SimpleVMS’s strategic position and robust offerings: “SimpleVMS is poised to create an end-to-end contingent talent acquisition ecosystem through deep integrations with Avionté. Its offerings, particularly appealing to midsized organizations, include robust blue collar-specific capabilities, and a comprehensive suite of timekeeping tools and invoicing functionalities. In addition, Avionté’s backing and strong staffing supplier partnerships position SimpleVMS well to meet its clients’ needs. These factors have contributed to its Major Contender and Star Performer positioning in the global VMS PEAK Matrix Assessment 2024.”

A complete solution for employers to manage their contingent workforce all in one place, SimpleVMS offers powerful functionalities for clients of all sizes in the clerical and light industrial (CLI) space. SimpleVMS’s ability to harmonize data integration among VMS, timekeeping, business analytics/reporting, invoicing, and applicant tracking system (ATS) successfully eliminates duplicate workflows, redundant data entry, and billing discrepancies. With SimpleVMS, employers can manage their contingent workforce seamlessly while optimizing for cost, quality, continuity of service, responsiveness, and scalability.

“Everest’s designation validates our dedication to breaking down the barriers between VMS and staffing ATS technologies while delivering value to employers, staffing agencies, and talent,” said SimpleVMS President Jason Oswald. “As the staffing industry continues to evolve, SimpleVMS and Avionté remain steadfast in our commitment to deliver a comprehensive solution for managing contingent labor. Our customers give us high marks for offering an easy to implement, user friendly, high value platform that is designed to support both high volume and midsized contingent workforce programs. Our unique, end-to-end staffing platform delivers a seamless experience across the supply chain of labor.”

As organizations look for efficient and scalable solutions to manage their contingent workforce, SimpleVMS is well-positioned to meet and exceed these demands. Key SimpleVMS functionalities include:

• Timekeeping: A fully integrated, no-cost solution provides full visibility into the contingent workforce through real-time dashboards. The platform automates schedules, tracks attendance, and allows the contingent workforce to transfer between cost centers.
• Job Order Management: A central portal to manage vendors and multiple hire types in one system. Distribute job requisitions in seconds to specified suppliers.
• Visibility: Full transparency for the staffing program, including vendor performance metrics.
• Invoicing: Single invoice for all suppliers, customized to support the client’s accounting requirements.
• Implementation: Simplified implementation, taking an average of four to six weeks.
• Support: Unlimited and direct access to the support team.
• Reporting: Robust business intelligence platform features visual dashboards with drill-down capability and over 100 stock reports.

Download a copy of the Everest Group 2024 Vendor Management System (VMS) PEAK Matrix® Assessment on our website.

About SimpleVMS

A division of Avionté, SimpleVMS is a vendor-neutral vendor management system (VMS) developed by staffing industry professionals to enhance the relationships between clients and their staffing partners. The cutting-edge platform delivers complete workforce visibility and streamlined workflows, providing everything from job order management to invoicing and analytics, paired with an integrated timekeeping solution. More than software, SimpleVMS provides the hands-on support that employers and agencies depend on to manage their variable labor programs. For more information, visit https://simplevms.com.

About Avionté

Avionté is a proven leader in enterprise staffing platforms, providing a comprehensive end-to-end, cloud-based technology solution designed for scalability and growth. The Avionté platform delivers a complete front and back office, a robust mobile talent application, and a powerful VMS. With a single staffing platform, agencies can now manage the entire supply chain of labor, from employer to agency to talent and back. Learn more at https://www.avionte.com.

Contacts

Michelle Meek
PR for Avionté
mmeek@meetclearedge.com

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SimpleVMS was named a Major Contender and Star Performer in the Everest Group Vendor Management (VMS) PEAK Matrix® Assessment 2024. Read the report here.

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5 Best Practices in Vendor Management

Vendor relationship management is a critical aspect of modern business operations that involves overseeing and coordinating relationships with external suppliers who provide goods and services to a company. This process is not only crucial for ensuring that operations run smoothly and efficiently but also plays a pivotal role in reducing costs, enhancing service quality, and ensuring compliance with regulatory standards.

Effective third-party vendor management can transform a company’s operational capabilities, making it more agile and competitive in today’s fast-paced market environment. By integrating robust vendor management practices into daily business processes, companies can achieve optimal results—ensuring they receive the best value from their partnerships.

This comprehensive guide will walk you through the best practices in vendor management, helping you harness the full potential of your vendor relationships. Whether you are looking to streamline your procurement process, optimize your contingent workforce, enhance supplier performance, or ensure compliance and risk management, these practices will provide a comprehensive framework to achieve these objectives efficiently.

Best Practice #1: Thorough Vendor Selection and Due Diligence

The process of selecting the right vendors is critical for sustaining business growth and stability. It starts with a rigorous evaluation of potential vendors to ensure their capabilities align with your strategic goals. Focus on their technical proficiency, candidate capacity, and ability to adapt to changes, which are crucial for long-term collaboration.

Conduct comprehensive due diligence to assess the financial stability, market reputation, and vendor compliance with industry regulations. This step is vital to identify any potential risks that could impact your business operations or reputation.

Finally, implement strategic risk management by analyzing the operational, financial, and reputational risks associated with each vendor. Ensure that they have effective strategies in place to mitigate these risks. This thorough vetting process not only protects your business from potential threats but also builds a foundation for strong, mutually beneficial vendor relationships.

Best Practice #2: Clear and Comprehensive Contracting

Clear and comprehensive contracts are the backbone of strong relationships. They serve as a legal framework that outlines the responsibilities, expectations, and obligations of both parties, ensuring that all aspects of the partnership are transparent and enforceable.

Detailing Contract Terms

It’s vital to draft detailed contracts that clearly define the scope of work, deliverables, pricing models, and timelines. Specificity in contractual obligations helps prevent misunderstandings and sets clear expectations for both parties. This includes outlining processes for scope changes, which are common in long-term partnerships.

Incorporating Service-Level Agreements (SLAs)

Service-Level Agreements (SLAs) are critical components of vendor contracts. They specify the performance standards expected from the vendor and the metrics by which their performance will be measured. SLAs also establish penalties for compliance issues, which reinforces accountability. By defining these parameters, companies can ensure consistent service quality and reliability.

Ensuring Contract Flexibility and Scalability

While it’s important to have detailed contracts, they should also offer flexibility to adapt to changing business needs. Contracts should include provisions for scaling services up or down based on demand, as well as clauses that allow for contract negotiation or early termination under agreed-upon circumstances. This flexibility is crucial for maintaining a resilient and responsive supply chain.

By emphasizing the necessity of clear, detailed contracts with well-defined SLAs, companies can better manage their vendor relationships, boosting overall performance, minimizing risk, and furthering alignment of business objectives. This approach not only protects the company legally but also strengthens the partnership by setting a foundation of trust and mutual understanding.

Best Practice #3: Effective Communication and Relationship Management

Effective communication is crucial in managing vendor relationships successfully. It ensures that both parties are consistently aligned on expectations, project statuses, and strategic goals. This alignment helps prevent misunderstandings and fosters a collaborative environment.

Scheduling meetings on a regular basis keep each party well-informed and responsive. This ongoing dialogue allows for quick resolution of issues and adjustments in strategies or expectations as necessary.

Moreover, building a partnership rather than maintaining a purely transactional relationship can lead to significantly better outcomes and innovation. When vendors are treated as strategic partners, they are more likely to invest deeply in understanding your business objectives and contribute creatively to your projects. This collaborative approach not only improves service quality but also encourages mutual growth and innovation.

Best Practice #4: Ongoing Performance Monitoring and Management

To ensure that vendor relationships deliver continuous value, it’s essential to implement ongoing performance monitoring and management. This involves regularly assessing vendor performance against established key performance indicators (KPIs) and metrics to ensure they meet or exceed the agreed-upon standards.

Regular performance reviews help identify areas where vendors are performing well and areas that may need improvement. This data-driven approach allows for timely interventions and adjustments, ensuring that vendor services evolve in line with your business needs and market dynamics.

Additionally, utilizing vendor management software can streamline the monitoring process. These tools offer automated tracking and reporting features, making it easier to manage multiple vendor relationships efficiently and effectively. By continuously monitoring performance, you can make informed decisions about contract renewals, renegotiations, or even terminations, fostering a culture of accountability and continuous improvement.

Best Practice #5: Leverage Technology for Enhanced Vendor Management

Utilizing technology, specifically through advanced vendor management systems like SimpleVMS, can revolutionize how businesses manage their vendor relationships. SimpleVMS is designed to streamline and simplify every aspect of vendor management, offering features like automated tracking, real-time reporting, and integrated compliance tracking.

With SimpleVMS, companies in a variety of industries can automate routine tasks such as job postings, interview scheduling, onboarding, and invoicing. This automation reduces manual workload, enhances accuracy, and ensures compliance with regulatory requirements. Additionally, the platform’s real-time reporting capabilities provide instant access to critical data, allowing for proactive decision-making and quick issue resolution.

Implementing Best Practices with SimpleVMS

Incorporating these best practices in vendor management can significantly enhance your business operations. By integrating these strategies, you ensure better vendor performance, reduced risks, and stronger relationships.

SimpleVMS offers innovative solutions that encapsulate these best practices into one seamless platform. Its features streamline vendor management processes, enhance efficiency, and provide real-time insights, making it an invaluable tool for any business. Implementing SimpleVMS can lead to more efficient, effective vendor management, driving your business toward greater success and sustainability.
To learn more about how SimpleVMS can benefit your vendor management processes, schedule a no-obligation demo.

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SimpleVMS is excited to announce the hiring of Spencer Dee. Spencer joins the team as our new Implementation Coordinator. Based out of our office in Cincinnati, OH, he will lead the Implementation team in onboarding our new clients and vendors.

Get to know Spencer

Originally from Cincinnati, Spencer graduated from the University of Louisville College of Business with a Bachelor’s Degree in Computer Information Systems. Before returning to the area, he worked as a Program Coordinator at a Louisville-based software/hardware company and interned as a Software Developer. He has also worked as an IT Project Coordinator at a Citrix Service Provider. Spencer brings an additional layer of expertise to the team with his fluency in Spanish.

Spencer likes spending time outdoors and stays busy hiking, golfing, playing in a softball league, and pick-up basketball. He also enjoys trivia, movies, and playing video games (he fits in perfectly with our team).

Please join us in welcoming Spencer

At SimpleVMS, we are genuinely focused on providing the best possible customer experience from implementation and onboarding to continued support. Spencer is a key to getting our clients and vendors off to a great start, and we are so pleased to have him as a part of our team. We think you’ll enjoy working with him, too!

Are you interested in learning more about our no-cost, hands-on implementation process? Contact Spencer and the team today.

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SimpleVMS is excited to announce the hiring of Dylan Phillips. Dylan joins the team as a Customer Support Specialist. Based out of our office in Cincinnati, OH, he will work with us to provide exceptional support for our clients and vendors. 

Get to know Dylan

Dylan graduated from the University of Cincinnati, Carl H. Lindner College of Business, with a Bachelor’s degree in Marketing. After graduation, Dylan worked as a Carrier Administrator for a Northern, KY-based freight service and as an Associate Technical Support Analyst in Systems and Hardware at an automotive software company. He has also completed several internships and volunteered as an assistant basketball coach at his alma mater.

In his free time, Dylan pursues his other interests, including running, weight training, kayaking, hiking, obstacle course racing (OCR), and sand volleyball.

Please join us in welcoming Dylan

At SimpleVMS, we strive to provide top-notch customer support, and we know Dylan will be a great asset in this initiative. We’re excited for Dylan to be part of our team to assist our clients and staffing suppliers with all of their vendor management needs.

If you need assistance, connect with Dylan and the SimpleVMS customer support team today.

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SimpleVMS is pleased to announce the hiring of Jay Bauer, who has joined our team as a Senior Sales Executive. Based out of our office in Cincinnati, OH, Jay will work with the team to support SimpleVMS’s growth initiatives into new and existing industry verticals.  Jay joins us with a background in cloud-based workforce management solutions and takes pride in focusing on establishing partnerships, not transactional solutions.   

Get to know Jay 

Jay previously worked for Allianz Trade, the largest provider of trade credit insurance.  He was directly responsible for developing new business across a wide range of industries while simultaneously supporting the successful implementation and renewal of existing clients.   

Jay, his wife Emily, their son Camden, and their golden retriever, Sunny “Goose,” reside in Liberty Township and is a lifelong Cincinnatian.  They love everything outdoors: hiking, hanging out with family and friends by the fire pit and spending time together.  Jay also stays busy coaching his son in basketball and soccer.  

Please join us in welcoming Jay

At SimpleVMS, our goal is simple, to save our clients time and money. We’re excited for Jay to help us continue this initiative and deliver our solution to more companies that will benefit from working with our vendor management system.

Connect with Jay and the SimpleVMS Sales Team to learn more about how vendor management supports your industry verticals.

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SimpleVMS is excited to announce the hiring of Ashley Young, the newest addition to our vendor management sales team.

Based out of our Cincinnati, OH office, Ashley will work with the team to expand the SimpleVMS footprint in the light industrial staffing space and beyond. Ashley joins us with an extensive background in the staffing and recruiting industry and brings a valuable perspective to help our clients support their vendor management strategies. Ashley’s long-term goal is to work with our prospects and clients to identify labor spending and efficiency improvements through our vendor management software.

Get to know Ashley

Ashley worked with Kelly Services for over ten years, where she began her staffing career as a recruiter before transitioning into a sales role. During her tenure at Kelly, she was recognized as the 2019 Rise Up award winner and the Presidents Club award winner in 2020 and 2021. Her market focus was in Ohio and Kentucky, but her industry knowledge is far-reaching.

Ashley was born and raised in Cincinnati, OH, and still calls the area home. She, her husband Jon, and their kids, Logan and Olivia, love to spend time with family and friends in their spare time.  They also enjoy camping, kayaking, and spending time at Norris Lake in Tennessee. When she is not at the lake, Ashley’s happy place is the beach.

Please join us in welcoming Ashley

At SimpleVMS, our goal is simple, to save our clients time and money. We’re excited for Ashley to help us continue this initiative and deliver our solution to more companies that will benefit from working with our vendor management system.

Connect with Ashley and the Sales Team today to learn more about how SimpleVMS supports your light industrial staffing.

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