How to Use a Vendor Managment System

Aug 28, 2011
Kevin Johnston

Guidleines for configuring employee vendor rates in your vendor management system.

Overview

A vendor management system (VMS) operates through the Web to help companies manage the process of hiring temporary labor. The system can screen all the vendors who offer temporary labor to help secure the best price while eliminating phone calls and negotiations with those agencies. When setting up your vendor management system, configure it to find all the temporary labor rates from current agencies and organize these rates in a manner that helps you make decisions quickly.

Step 1

Log in to your vendor management system. Enter all the hourly wage rates you have been offered from temporary employment agencies. If necessary, call agencies and ask for their best rate, explaining that you are entering them permanently in your system for future consideration.

Step 2

Sort temporary employment vendors from lowest to highest. Your vendor management system will list the least expensive to the most expensive employment vendors. You can quickly see who offers the most cost-effective service.

Step 3

Make notes about the quality of service. Choose the three or four most affordable temporary employment vendors and make notes about any experience you have had with them. The least expensive may not be the most reliable.

Step 4

Reconfigure your vendor management system periodically. Add or eliminate employment vendors and continue to make notes about the vendors you have used. In addition, you may want to configure the vendor list from most expensive to least expensive in descending order, so that you can examine the higher-priced vendors to see if they offer better service or higher-quality employees.

Step 5

Assign a VMS vendor manager to set up new employment vendors and enter their information in your vendor management system. According to Tim Giehll of BondTalent.com, it is important that employment vendors are set up properly in your system so that hours can be tracked and payments made accurately. This will save you time dealing with vendors, and your system can manage them for you by listing them in the configuration you have designated.

Reference