What is a VMS today? Spend Matters’ SolutionMap helps define it  [SolutionMap CW/S]

work intermediation platform

Vendor management system (VMS) solutions have been synonymous with contingent workforce technology for the past two decades, but the functions associated with it have been evolving.

It began as a fit-for-purpose software application for managing temporary staffing suppliers and temporary workers, but over the past 10 years, most of these solutions have added functionality or modules to manage contract services/SOW suppliers and service delivery engagements. In the past five years, some providers of these solutions have grappled with the VMS term and concept. Today, most providers of these types of solutions still refer to themselves as VMS solutions, although their solution footprints vary.

When Spend Matters introduced its first SolutionMap for Contingent Workforce and Services (CW/S) enterprise technology in Q2 2018, it decided to forgo the use of the term VMS in favor of developing separate SolutionMap rankings for distinct technology solutions that addressed three extended workforce categories: (1) Temp Staffing, (2) Contract Services/SOW and (3) Direct Sourcing of Workforce/Services (formerly named “Independent Contract Workers”). This was done in part to sidestep the growing variability of the meaning of the term VMS. But more importantly, it was done based on the belief that the three categories provided a more accurate way to analyze and compare solution capabilities (to be discussed further below).

This SolutionMap Insider brief examines the current status of VMS and how Spend Matters draws a tentative line around what constitutes a VMS solution today. It also provides a high-level view of the “VMS” capabilities and an anonymized analysis of corresponding SolutionMap scores. Lastly, it concludes with questions posed to practitioners and providers about the validity of the definition and concept of VMS presented in this brief.

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