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How Can A Vendor Management System Affect Your Revenues?

How Can A Vendor Management System Affect Your Revenues?

Vendor management system is quite more than just getting suppliers to offer you a far better contract. Don’t you agree? VMS allows you to build a relation with your service providers and suppliers. This overall strengthens and benefits both businesses. It’s not only about negotiating to the lowest price possible but it is about constantly working with your vendors to meet up at a mid-point that proves to be beneficial to both the companies.

You would be wondering, “How is VMS beneficial and how does it affect my revenue”? Well, here’s the answer to your question.

The Struggle to Manage your Contingent Workforce

The traditional HR practices are not suitable enough to manage the external labor pool. Therefore, over the years, to remain globally competitive, businesses have turned to cloud-based technology solutions like Vendor Management System or VMS. But do you know why?

  • VMS can maximize productivity and increase efficiency.
  • VMS manages labour costs.
  • It provides transparency that an HR and Procurement management needs to ensure for their business in order to engage with eligible external talents with the required qualifications and certifications.
  • With the right implementation of the Vendor Management System and the collaboration between the Acquisition and HR, the business can maximize the value of all kinds of engagements with its service providers.

Automated and Enhanced Processes

VMS solutions simplify the entire process of projects, contracts, assignments, managing expenses, on-boarding, off-boarding, invoices, responding to new opportunities, and sourcing. The external workforce keeps growing over the years, hence making it a tedious job to maintain all the contracts or records. This is where Vendor Management Systems come to the rescue.

No employee would like to work with a business that has a tackier process for anything. With VMS, the process for invoicing, payment or reimbursements is easier and more reliable. Workers prefer to have a clearly defined process for their satisfaction. This is the best for the contractor’s productivity.

VMS Mitgiates Risk

Every day your organization would be facing all sorts of compliance issues both internally and externally – whether they are the governmental regulations or corporate policies, vendor management systems cut down that risk for you. But how?

  • All your information is one system. This makes it easier to create your audits.
  • VMS sends your reminders about important things like a VISA expiration or a licence renewal or tenure notices.
  • Controls over relevant approvals are created.

Short Requisition Cycles

Your requisition time and the time to fill gets shortened with VMS. Vendor management systems help you create a better candidate experience, especially when time plays a crucial role for your business. In short, your work that would have been completed in months, is now completed in a few days. How great is that?

Payment Procedures and Reports

VMS creates automated detailed reports related to your invoices and cuts down the administration time for the same. The vendor management system supports the following features via desktop or even a smartphone:

  • Time tracking
  • Payment processes
  • Expenses reimbursement

Stronger Skilled Workforce

With the automated processes, you can make smarter and better decisions while getting people on-board. With this platform, the ideal labour type can be evaluated for each role. Post evaluation, you can determine the best way to source via the preferred supplier. This ensures that you have a more manageable strategic workforce with the desired skill-set in the longer run. Hence, you get a team with the required certifications, talents, and skills.

Ultimately, a Vendor Management System or VMS integrates your payment process systems and the existing time trackers with a solution. This means that a cloud-based VMS reduces the administration time, gives out detailed reconciliation reports, facilitates automatic processes, and sends out electronic invoices. Additionally, the right VMS helps you to secure hard-to-find skills, respond quickly to competitive threats, make changes in your requisitions and pivot to capitalize on new opportunities.

VMS helps in managing your payrolls better. Not only this, the automated process notes discrepancies overtime and even at exaggerated rates. You get to gain an insight on different labour types along with their associated rates so that you can avoid additional recruiting and training charges. This helps you to make better decisions and choose the best candidates. All-in-all VMS adds up to being a cost-effective software that is beneficial to business.

I’m sure these reasons leave you wanting to try out a demo with us. In fact, our tech stack is going to keep you on your toes. Post this, you should drop in a “Hi, Flentis!” at our mail info@flentis.com

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