Contingent Workforce Management: Just Say Yes to a VMS

...We admit it rhymes. But here at Spend Matters, we are amazed at the limited penetration of many VMS tools today, even inside companies that have access to them with an MSP concierge showing a path to scale and adoption. So repeat after me: Just say yes to a VMS. But don’t just engage a provider (or multiple VMS solutions). The decision to use a VMS is easy – or should be. Focusing on scaling adoption past a small percentage of overall services spend is more difficult.

In terms of software investments, Spend Matters current research supports the notion that specialized VMS tools (whether commercial or even homegrown – desperate times call for desperate approaches in certain cases) outperform technologies resident in ERP and indirect procurement tools, which companies are using as a crutch, even if the ERP tools amount to little more than the proverbial square peg for a round hole.

Note also that this is shifting area, and specialized services procurement tools (e.g., freelancer management systems) are emerging that are capable of changing even the orientation of what services are purchased, let alone how. Perhaps in the future, freelancer-centric solutions will even overtake the VMS as the more strategic toolset based on changing supply market demographics within the contingent workforce.

Yet until that happens, please stop using the wrong tools as a crutch. Engage with a VMS provider that doesn’t just have the features that you think you need – engage with one that will show the path to maximizing adoption and uptake. And stop using EPR and e-procurement tools as a services procurement and contingent workforce crutch.

This analysis is based on the Spend Matters research study, Applying Supply Chain Rigor to Contingent Workforce Management, which is available for limited period of time for free download in the Spend Matters research library.

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First Voice

  1. Ben:

    Great read

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