The right vendor management system can assist you in beating those vendor related challenges. Vendor management is the technique in which a company acts appropriately related to cost-control, risk mitigation, and the enhancement of deliverables. A contingent workforce platform assists in researching all kinds of candidates and choosing the most suitable vendor. Not only this, but it also is the one-stop solution to all the obstacles your business can come across. It is like a kick to your vendor management challenges.
Let’s get to know the 6 major vendor management challenges and their solutions in detail.
CHALLENGE 1 : OUTDATED / MISSING VENDOR DATA
Maintaining vendor records in folders on paper or on a spreadsheet is not that great of an idea in such a fast-paced world. Literally, everything is on a cloud, internet, or a device. The paper processes are nearly a dead thing. Spreadsheets are good for tiny businesses or start-ups that have people as many as their toes and fingers. Files get corrupted when you are totally dependent on spreadsheets. They could also be incomplete and old due to no updates made or difficulty in searching through lists and lists of candidates.
Solution:
A vendor management software that has a tracking system that checks records and updates them using artificial intelligence. Automation comes with FlentisPRO.
CHALLENGE 2 : MISSING DOCUMENTATION BY VENDOR
Manual paperwork is not an easy thing to deal with unless your business consists of ten people. Collecting certain documents of candidates is essential as it ensures that they comply with all requirements. Renewal of documents is another level of trouble. It would take a lot of time to chase down the vendor to get the data updated and despite that, something would still be incomplete.
Solution:
Use a contingent workforce platform because it tracks all the expiring documents and even sends you a reminder. It reminds relevant people to update their documentation before the deadline. Isn’t that convenient?
CHALLENGE 3 : DIFFICULTY IN FINDING THE RIGHT VENDOR
Organizations usually face constraints of time as well as resources when they are on the lookout for vendors with a specific skill. When the recruiting process is manual, it is bound to be difficult. Such processes don’t even really give you the result you were looking for, which makes the entire effort seem wasted.
Solution:
Automate the entire hiring and recruiting process with a talent pool that assists you in getting the right candidate with the skill set that you are looking for (that too in your budget!).
CHALLENGE 4 : INVOLVEMENT OF PAYMENT RISKS
Many vendors stick to the industry-standard terms, but some individuals have different terms of payment (and then you are expected to figure out their terms). And this inconsistency can mess up in the long run. Additionally, you must make sure that the payments go on time and there should be no scope of fault irrespective of the number of vendors you deal with.
Solution:
Using the best Vendor Management Software, FlentisPRO, you can get automated payrolls and invoices. The VMS portal will check out the timesheets, and KPIs, and create a generic report for the invoices making your payments smooth.
CHALLENGE 5 : SECURITY BREACH
Organizations are very conservative about the candidature data they have. Well, why won’t they be? They prefer to have a secure platform to store everyone’s information. But expecting security from files of papers or spreadsheets is not the way to go about security.
Solution:
A contingent workforce platform secures all your data, information, and documents on a cloud-based portal. This is secured by credentials that can be accessible to the stakeholders and other prominent members.
CHALLENGE 6 : MISVALUED & OVERPRICED VENDORS
If you are unaware of the market rates of different kinds of job titles, onboarding vendors could be expensive. It is essential to know the value of each vendor and the skill they bring to the table. It is also important to bring clarity to what kind of vendor are you hunting for? For instance, a full-time employee and a remote worker would not charge the same. Then why would you pay the same?
Solution:
A vendor management system could provide the best talents at their best value. So, now you won’t be charged a bomb and could seek different kinds of workers instead of the traditional worker.
A lot of businesses face the above-mentioned vendor management challenges . These companies usually have a large supplier base and a complex geographical structure. When a company starts to grow more than our fingers and toes, it is better to integrate with a contingent workforce platform in order to save the hiring and recruiting managers from the manual processes. Plus, the vendor management software comes in with a lot of additional benefits that aid in the success of your business.
