The Advantages of the Supplier-Funded Model for Vendor Management Systems (VMS)
The advent of cloud computing ushered in a new era in software availability, capabilities, and cost. While many may be familiar with trends and variations in software pricing, from perpetual to subscription to usage-based licensing, the concept of software that does not carry an ongoing client usage fee may be less familiar. The pricing norm for Vendor Management Systems (VMS) has been a supplier-funded model that offers significant value for all parties in the supply and demand equation for external workforce and services procurement management.
This whitepaper is intended to explain how a supplier-funded model works and highlight the benefits for both customers and their services suppliers.
As Workforce Complexity Grows, So Does the Need to Manage It More Effectively
The workforce mix companies use today is increasingly complex. It is comprised of a varied array of workers beyond direct employees: contingent workers, independent contractors, project consultants, retirees, alumni, Business Process Outsourcing (BPO) firms, and more. Organizations rely on all these non-employee workers more than ever to help drive business growth and profitability. The process of sourcing, engaging, and managing a highly diverse external workforce can be complicated and costly, impairing an organization’s ability to derive competitive advantage from the strategic use of flexible labor.
VMS Technology Simplifies Workforce Management
VMS technology streamlines and simplifies the procurement-to-pay cycle for all categories of external labor and services by automating critical process steps. It allows an organization to achieve unprecedented enterprise visibility into the composition, cost, and quality of its flexible workforce. It can significantly enhance government and corporate compliance and ensure adherence to safety and security policies. It improves process efficiency and supports strong governance in a program. It simplifies how external service providers are engaged while providing a means to measure the quality of services delivered. When a company can launch a program without requiring an upfront investment in technology, bottom-line benefits are quickly and readily apparent.
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