Establishing Integrations with your VMS can provide great benefits
Automation + Integrations = Process Efficiencies (A+I = PE) with your VMS tool
by Cheryl Tracz – Draper Jones Consulting
March 26, 2021
When examining, implementing or enhancing the configuration of your Vendor Management System, it’s imperative to understand the difference between “static” and “fluctuating” data. For example, locations of an organization rarely change, therefore that information can be loaded. However, in many organizations the cost accounting information or purchase order for which contingent workers apply their time and invoices may change frequently therefore an integration would provide efficiencies and better alignment between the systems.
Involve your IT leadership, they provides leadership, guidance and counsel on all matters pertaining to systems integrations. Their Role is to collaborate with VMS Technology Partner Integration Specialist to facilitate and coordinate requirements gathering, specifications, and testing
While a VMS system offer great efficiencies for a contingent workforce process, establishing integrations with an enterprise’s applications can provide
- Cost Savings (i.e., consolidated invoicing, payment processing and prompt pay discounts)
- Greater Process Efficiencies (Decrease in error rates and improved task automation)
- Increased Visibility
While VMS tools offer reporting as a standard more organizations are exporting the data into their own data warehouses to marry the non-employee and employee data together giving the organization better insights into their actual workforce costs, and allow them to more proactively plan for the total talent requirements of future initiatives
As an example a client with operations in New Jersey and Atlanta were able to look at not only their contractors but also their employees in their IT organization. Out of habit they were hiring lower-level IT support and helpdesk resources in the higher priced labor market of New Jersey. Once they had that visibility, they were able to reallocate that work to Atlanta and reduced their costs by more than 10% in one group in one year.
In summary, utilizing your VMS system’s automation tool and integrating with your enterprise systems can lead to process efficiencies that save time, money and hassle. A + I = PE.
Cheryl Tracz is a Sr. Solutions Consultant at Draper Jones Consulting (DJC). Draper Jones is a group of proven practitioners making a difference in the extended workforce.
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