Following the bankruptcy of Chimes and then the bankruptcy of that small healthcare VMS, I thought we were done. But now the Albany Group VMS in the UK had their funding pulled out from under them. Who is next??? Bee Line was bought by Adecco, so they are safe. Which VMS do you feel will be the next to file bankruptcy or be acquired??
Stand alone VMS solutions are like labor unions. When they were started they served an important purpose, but now they are no longer relevant. VMS sounds like a Buggy Whip to me!! Let’s think about why!!
Stand alone VMS companies have two major flaws. First, they need to chage a 1-3% fee on all the payments that pass through their hands. All that does is add to the cost of this Human Capital Supply Chain as these fees are passed onto the staffing suppliers. If you were a staffing supplier with a 7% net margin and someone wants 1-3%, you would NOT be very happy. You would grin and bear it, BUT you would NOT like it at all. Secondly, corporation who pay their bills to the VMS assume that the payments are made to the staffing supplier. As illustrated by the 3 problem firms at the top of this post, that does not always happen and the Human Capital Supply Chain becomes more expensive to operate.
In the future, corporate talent management systems and their sister systems used by staffing firms will absorb the traditional VMS capabilities and then they will directly connect to each other. At Bond, we are in the process during 2010 of directly connecting our Talent corporate talent management solution with our highly successful Adapt /eEmpACT staffing solutions to create the FIRST Human Capital Supply Chain software environment. The need for seperate VMS systems will go away for the next few years. Change can NOT be stopped.
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