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What is a Vendor Management System (VMS)?

Apr 1, 2020
A VMS is a digital system by which an end-client manages its relations with its supplier, often in the context of contingent staffing.

Vendors and Vendor Management Systems?

To understand what a Vendor Management, or VMS, is, it’s important to understand what vendors are, and why they must be managed.

Vendors are organizations, often companies or corporations, which sell staffing solutions. This means that they recruit individuals to fill positions opened by their corporate clients, such as Fortune 500 companies.

But the question is: how do corporate clients connect with recruitment firms to notify them of open positions? Do they call, email—how?


VMSes and Modern Technology

A vendor management system is the answer. (Note that VMSes are not only for temporary staffing suppliers, but rather for all external staffing suppliers, in most cases.) VMSes are online applications that recruiters can sign into and use to view and manage their clients’ open jobs, including by submitting talent.

Applicant Tracking Software and Talent Acquisition Systems—in particular, JobDiva—make it far easier for an organization to synchronize their work processes with the VMS system. After a quick setup, JobDiva automatically synchronizes with the latest open job data on the VMS systems. That way, recruiting organizations can work more seamlessly, with all of their necessary data reflected in one system.

Organizations that want to stay competitive should absolutely pay attention to VMS requirements and processes. Though vendor management is not the only important part of staffing, by a long shot, it is very important to stay abreast of changes in VMS technology.

Or to acquire technology that keeps track of these changes for you, such as JobDiva.


How Do VMSes Help?

In a way, VMSes have changed how recruitment organizations work. A VMS is a computer program that sends fresh job requirements to staffing and recruiting organizations. With a VMS, it’s easier to respond to job openings with available talent. It’s also easier to pay and bill.

Staffing agencies can use VMSes to submit talent. Clients can use VMSes to review talent. Digital technology makes that fairly easy.

Imagine a time before the VMS. Recruiting companies had to use phone or physical mail to learn about job requisitions. After the invention of the Internet, they could check clients’ websites or receive emails. In this process, there was plenty of room for error, delay and confusion.

The VMSes reinvented this process. Now, digital technology allows recruiters to easily find out about the latest job openings and requisitions via singular Internet-based systems. However, without JobDiva to synchronize with the VMS, recruiters must often import jobs manually into their recruiting systems.


The VMS System and JobDiva

Though VMSes have remade temporary staffing, JobDiva’s ATS and Talent Acquisition platform allows recruiters to take full advantage of the VMS ‘revolution.’

For staffing companies, VMSes play a huge role. JobDiva helps synchronize and optimize this crucial part of the staffing process.

With JobDiva, staffing agencies can more effectively build client relationships. And fill jobs faster. 


MSPs and Staffing Companies

The MSP, or Managed Service Provider, is another part of the VMS model. The MSP is supposed to be a neutral, objective evaluator of staffing supplier quality. The MSP advises end clients (such as Fortune 500 organizations) about the most effective, responsive talent suppliers. The VMS and MSP are two halves of the end clients’ management and measurement of temporary staffing suppliers.

Overall, staffing cannot return to a time before VMSes. The VMSes are here, and they are critical parts of the temporary staffing process. However, by equipping yourself with an ATS or Talent Acquisition suite which synchronizes with VMSes, you can harness the full potential of the VMS. Otherwise, it is hard to take full advantage of the value that VMSes can offer.

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