In a recent report by research firm Staffing Industry Analysts, it was found that the percentage of companies using Vendor Management Systems ( VMS ) jumped from 34 percent in 2007 to 63 percent in 2009. Staffing Industry Analysts also predicted the rate would climb to 81 percent in 2011.
This is a very interesting trend for any firm that is trying to better manage it spending on contingent workers. It also proves the point that the need for corporations and their staffing suppliers to better communicate with each other has never been greater. For those not familiar with VMS software, it usually sits between a corporation and its staffing suppliers and it automates the “req to check” process with capabilities such as job requisition templates, req approvals, distribution of reqs to staffing partners, assignment letters, time sheets and invoicing. The software can even help manage independant contractors and outside consultants.
Even though first generation VMS systems are usually stand-alone companies, their functionality and business models will evolve over time. I feel that current VMS functionality will be split down the middle with requisition activities pushed back into the Talent Management systems that the corporation uses. The other half of the current VMS functionality will be pushed down into the ERP Systems used by staffing firms. With today’s easier to use API Interfaces, the corporate and staffing systems will be easily plugged together. Firms such as Bond International Software and others sell software solutions to both sides of the fence in order to create these new Human Capital Supply Chain environments.
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