Five steps to engaging a VMS/MSP

“How much does a VMS cost?” 

“What ROI can I expect from my VMS?”  

If you are researching vendor management system (VMS) technology to support your organization’s contingent workforce program, these may be a couple of the many questions spinning in your head.  So, where do you start?  Right here. You have come to the right place. 

Beeline commissioned a study by Forrester Consulting to answer some of these questions.  Forrester discovered that a Beeline VMS can pay for itself in less than three months and provide an ROI of 158%. The cost of a VMS depends on the size and scope of your contingent workforce program. Our whitepaper, “An Introduction to Funding Models and Pricing Methods for a VMS," is one guide for estimating the cost of a VMS. 

After you have reviewed these resources and are ready to leverage a VMS to automate your contingent workforce, here are five steps you should follow. 

Build a business case 

The first step is building a business case.  As we continue to see non-employee demand rise due to economic uncertainty, skills shortages, and organizations needing to adopt a more flexible, resilient workforce, it’s essential to understand the value a VMS provider can bring.  First, assess your current processes and their shortcomings and compare them to your desired future state. 

Identify key criteria you want in a VMS 

At this stage, it is essential to engage with key stakeholders who can help define your program’s scope and drive adoption within the organization.  Once you have gained stakeholder buy-in, you can engage with potential VMS partners. 

Determine which providers to evaluate 

To engage effectively with a provider, you should know the key criteria you will want in your VMS solution and its provider.  Useful sources of information are reports from industry analysts like Everest Group, Quadrant Knowledge Solutions, and Staffing Industry Analysts. These reports provide useful comparative information about VMS technology and providers annually. 

You will want to conduct face-to-face meetings with selected providers and see demonstrations of their products. For more complex programs, once you have established your short list of qualified VMS providers, you will issue a Request for Information (RFI) or Request for Proposal (RFP).  Most analysts covering this industry can provide key evaluation criteria, but all VMS providers should have sample RFI/RFP templates they can provide. Finding the right partner who can help bridge the gaps from your current state to your future state is essential. 

It is critical to find a provider whose organizational culture meshes with yours so you know you have a partner you can count on when your program expands, matures, and changes.  This can be difficult to assess on paper, which is why face-to-face meetings, site visits, and reference calls to other clients using each prospective provider’s technology are key evaluation criteria. 

Contract considerations 

If you are using a managed service provider (MSP), you will need to decide who will hold the contract for your VMS: you or your MSP. Most industry analysts recommend contracting separately with the VMS provider and an MSP, just in case you want to change one or the other at some point in the future. You must choose the approach that best meets your organization’s needs. 

Funding models and pricing methods 

As explained in detail in the whitepaper cited above, there are multiple ways to fund VMS technology for your contingent workforce program, and pricing can vary based on several factors, including the number of contingent workers and the complexity of the VMS. You should review your options and discuss them with each of your potential providers to determine which option is right for you. 

As your contingent workforce program becomes increasingly vital to your company’s ability to respond to market challenges and opportunities, you will want to move quickly to implement a VMS automation solution. More than 80% of companies with over 1,000 employees already have a VMS, and companies of all sizes are using a VMS to control costs, increase efficiency, and reduce risks. 

Please review our suggestions above and then contact us. We would love to talk with you and show you everything a VMS can do.