Vendor Management System (VMS)
Definition - What does Vendor Management System (VMS) mean?
A vendor management system (VMS) is a Web-based application that allows an organization to secure and manage staffing services on a temporary, permanent or contract basis. It helps centralize the complex issues that surround the staffing.
A VMS generally involves the following:
- Job requisition or staff ordering
- Automatic billing
- Business intelligence (BI) functionality
- Management reporting
- Workflow engines
- Amenity tracking
- Service catalog, including standardized positions and skills
Techopedia explains Vendor Management System (VMS)
A VMS provides seamless access to cost-effective, qualified human resources, while facilitating efficient recruitment and long term growth. A VMS manages all staffing operations and management procedures and eliminates typical issues and inefficiencies of workforce management.
In a successful VMS program, clients work with top providers to recruit quality, affordable personnel in a timely manner.
VMS benefits include the following:
- The complete process is significantly smoother and faster.
- Only accredited personnel are recruited.
- All vendors may participate in the bid process, which leads to competitive bidding.
- A buyer may create standardized job descriptions.
- Details about job candidates are accessible from a single location, and different systems have the ability to rank each application, per buyer requirements.
- A central, end-to-end work flow engine manages the process.
- Questions, interview processes and rejections are noted and monitored.
- Job rates are competitive.
Vendors benefit from the following:
- Speedy approval for new hires
- Highly accurate invoicing that is uniformly delivered
- Reduced reporting errors
- Improved access to staffing requirements