VMS Companies around the globe use enterprise software that enables them to control the process of managing and procuring a flexible workforce. This special software is known as Vendor Management System. The system is usually enabled by the internet, and it can be accessed on-premises, in the cloud, or both. The features of the software let the companies search for, identify, onboard, track, and manage flexible workers.
VMS can be understood as a web-based application that works as a mechanism for businesses to procure and manage staffing services. This application can be used for temporary or permanent placement as well as for outside contract or contingent labor. VMS is loaded with features that help to make the functioning of the company smoother. Some of the typical features are order distribution, consolidated billing, and enhanced reporting capabilities. In fact, the reposting capabilities are so significant that it outperforms the usual manual system and processes done through it.
If you are looking for an article that will not only help you know everything about the top VMS Companies but also about what exactly it is and how it works. Then you are at the right place. This article is written keeping in mind that VMS companies are classified along with their pros and cons so that you can get a clearer view. So, keep reading to find out about the top VMS companies and much more.
A Vendor Management System, also commonly known as VMS, is a digital system. The end client uses the digital system, either software or application, to manage their relations with their suppliers, employees, or for other purposes. Vendors are organizations, mostly companies or corporations, that sell staffing solutions. Staffing solutions here mean that the vendors recruit candidates that are suitable to fill up job positions vacant or open at the offices of their corporate clients.
You can understand the concept of vendors as the person or an organization that vends or sells contingent labor. A contingent workforce comprises the labor pool whose members are hired on-demand basis. This workforce generally consists of workers that work for an organization on a non-permanent basis, also called freelancers, temporary contract workers, independent contractors, independent professionals, or consultants.
The VMS is an enterprise or company software platform that enables businesses to control the procurement and management of a flexible workforce. As explained earlier, the flexible workforce has temporary employees. The software has many features that let the company search, identify, recruit, track, and manage such contingent workers. Sometimes a company faces a situation where a permanent employee is on leave for a certain time period, in that the VMS companies provide an independent employee to fill up a permanent job spot temporarily.
Other examples of the workforce that VMS companies work for or recruit are statement-of-work workers, IT programmers who are employed for a project in a defined time frame, independent contractors who work on a contractual basis, and freelancers who, for short or long term. The VMS enables a company to review and rank the job applicants during the recruitment process. Then further, it has features that lets them to classify those who are hired, making sure those candidates fulfill all the compliance requirements.
This system also helps the top VMS companies to track, process, and manage documents, including time sheets, contracts, expense invoices, and other invoices associated with the temporary workers hired at their firm. The usage of this system benefits the business organization by reducing their cost, streamlining their processes, and reducing all the non-compliance issues.
VMS is an upgrade or evolution of the Master Service Provider (MSP) or Vendor On Premisses (VOP) concept. These concepts gained widespread popularity in the late 1980s and in the mid of 1990s. At the same time, when the larger enterprises began searching for ways to cost reduction in outsourcing. The concept of MSP or VOP was one where a master vendor was responsible for on-site management of their customer’s temporary help and contract worker needs.
When Michael Hammer and James Champy's book, Reengineering the Corporation, became a bestseller, the concept of VMS actually started to evolve. At the same time, the larger business enterprises were looking for ways to compete in the global economy. As the web started to evolve, so did the new ways of doing business. The emergence of e-business, B2B, and E-Procurement acted as a catalyst that helped the VMS industry grow. In a true sense, VMS is a recent advancement in managing a contingent workforce.
IN 1993, Geometric Result Inc. (GRI) was the first company that recognized that the management spent a great amount on contingent labor. In the beginning, GRI was a fully owned Ford Motors Company subsidiary. Later it was GRI that developed the first-ever VMS applications in the industry under the name of PeopleNet and became the pioneer of VMS.
The usage of Vendor Management Software can help companies improve their business operations in many different ways. Apart from saving a tonne of time, it improves the overall organizational efficiency. The brand visibility in the market also increases as VMS advertises the business for vacant job positions. Since it has features of maintaining records of expenses, inventories, and accounts, VMS identifies where the company is overspending and assists in budget management.
The VMS has truly changed the way recruitment works in an organization. It is an internet-based computer program that sends fresh job requirements on various platforms for staffing and recruitment. This makes it easier to respond to job openings for talent available in the market. VMS is a win-win for both staffing agencies as well as the clients. The staffing agencies can use it to submit talent, and clients can use it to review talent.
Today almost every business in the global market works with vendors. It makes life much easier by helping you manage orders, invoices, contracts, deliveries, and payments. It also improves business efficiency and streamlines the business process. VMS reduces the errors that are generally made in invoices and accounts. For such error reductions, it uses automation and real-time dashboards. Here is a list of the top VMS companies in the world:
SAP Fieldglass comes first among the top VMS companies in the market as it is packed with an impressive number of features. There are many useful features, including robust integration and advanced automation capabilities. It provides the most comprehensive end-to-end solutions. It has excellent customer service and a platform support system. The digital partner network in it can be used by businesses to hire new vendors.
Another notable feature of this application is Digital Partner Network. Where you can tap into if you are looking to hire new vendors. It will help you to find and hire service providers and contractors with special skills. The integrations in SAP Fieldglass are another standout feature. The software uses an open API framework that works well on-premise as well as on cloud applications.
Even though it has a good list of integrations, one of its major shortcomings is that it has too many features for some companies who are just taking baby steps in the business world. Another thing that can act as a bummer is that subscriptions in the application are very expensive.
The previous company SAP Fieldglass comes on the top for several features, but it is not as cost-effective as the small businesses want today. So, if you are looking for great features at a low price, then Genuity is made for you. And keeping that in mind, it is among the top VMS companies. Genuity, started by IT professionals, is headquartered in Illinois, Chicago. This company has got high ratings from independent sites like G2, which also named it a High Performer in 2021. Genuity is extremely cost-effective and one of the cheapest vendor management systems available in the market. In fact, you can also take a 30-day risk-free trial before you buy it.
Genuity’s VMS was designed by keeping IT and finance professionals in mind. You will find many IT-specific functionalities in the software. Like the ability to automate help desk requests and manage telecom expenses, along with classic vendor management tools. A few of the cons that this software has is that if you compare it with other companies, it offers very limited features. It might not also be the best option for non-IT teams.
The reason why gatekeeper is among the top VMS companies is that it has unlimited user seats, easy and fast implementation, and enterprise-level security. This is a London-based company founded in 2012. It is highly recommended for large companies present in the market that need widespread access.
The plans in this software include unlimited user seats with unlimited storage. Gatekeeper is a completely cloud-based platform. So, the larger organizations that are usually preoccupied with many other business operations won’t have to recruit IT managers to install or configure anything. In the application, there are many integrations with more than 220 applications, which include popular SSO, DMS, communications, and ERP solutions.
The software is very user-friendly and easy to use, but it also offers excellent training to get started. The new customers get paired with a customer success manager who will assist them throughout onboarding and implementation. Your team at your company can track down every aspect of the vendor lifecycle. Whether you have 20 or 200 contracts, that is not the bar.
Although Gatekeeper is packed with so many beneficial features, it can be a bit expensive, especially for larger firms that want to access all its features.
Precoro makes its place among the top VMS companies because of its affordability. It was founded in 2016, keeping in mind the needs of small and medium-sized businesses. All the other VMS software were quite expensive for new start-ups. And businesses, be they small, medium, or large in today’s times, need to streamline their vendor management practices and procurement.
It is a perfect tool for small businesses as it is a low-cost option for them. In fact, it is the cheapest solution available in the market with all the features it offers. You can take advantage of the powerful vendor management system it has to offer. It is highly customizable, so you add or change the features according to your requirements.
With the help of Precoro’s online portal, you can store vendors' contact information, manage multiple contacts, and also generate performance reports. The procurement tools in this platform include budget management and purchase request tracking.
A few of its shortcomings include the lack of a compliance management feature, and you will not be able to pay your vendors directly through this platform.