If your organization has not been leveraging technology to make its day-to-day operations easier, it’s time to start. Vendor Management Systems (VMS) are advanced technological tools that act as a single platform to manage all vendor related activities for an organization, ensuring all their workforce needs are being met efficiently. These systems have become essential for organizations looking to streamline processes, improve compliance, and manage their contingent workforce more effectively.
However, deciding to implement a VMS isn’t just about choosing a new technology tool − it’s a strategic decision that involves understanding your needs, involving the right stakeholders, planning for the future, and ensuring ongoing support and adaptability.
In this blog, we'll explore the steps necessary to determine if a VMS is right for you and how to navigate its implementation successfully.
5 Keys Actions to Ensure a Smooth VMS Transition
1. Identify the Need
Before jumping into the selection process for a VMS provider, it’s critical to assess whether your organization really needs a VMS and what problems it aims to solve. Many companies rush into implementing technology solutions without fully understanding their needs or the desired outcomes, resulting in poor adoption and limited ROI − don't let this be your story.
Start by pinpointing the challenges your organization is facing in vendor and contingent worker management. By identifying these pain points, you can better understand which features will address your concerns and the value a VMS can offer your organization. Once your challenges are identified and it’s time to define your goals, consider the following potential objectives to see if any of them resonate with your organization:
- Streamlined Process: Automating repetitive tasks to increase efficiency
- Enhanced Compliance: Ensuring compliance through automated record-keeping and documentation
- Improved Visibility: Providing real-time insights into your contingent workforce and vendor activities
- Reduced Costs: Decreasing administrative and time-consuming hiring costs
- Faster Onboarding: Leveraging technology to quickly onboard new hires
- Centralized Data: Storing all contingent workforce data in one place
- Reporting & Analytics: Utilizing this easily accessible data to make informed business decisions
- Automated Workflows: Completing contingent workforce and vendor related activities faster through the use of technology and automation − therefore improving your experience and the candidate experience
If your organization would benefit from any of the results listed above, then you are likely ready to take the next steps toward a VMS implementation. This is when it’s time to involve all the necessary stakeholders who will be integral in your VMS implementation.
2. Involve Key Stakeholders
Whenever your organization is facilitating a major change, it’s critical to involve everyone in the planning and implementation process who will be impacted by the change. So now that your internal team has established the need for a VMS, you need to select your VMS provider and bring all the key stakeholders to the table. This early involvement will build a strong foundation to help with successful adoption and ongoing support down the road.
Here are some stakeholders and experts to consider engaging:
- Your company's leadership team
- Your existing vendors
- IT team to handle system integrations and data migration
- Procurement
- HR to ensure all functions are compliant
- Frequent users, including hiring managers and admins, for example, to ensure seamless functionality
Each of these stakeholders will have a different perspective regarding how a VMS will impact your organization, so it’s crucial to make sure all their perspectives are taken into consideration before making any major business decisions. This includes checking in with your existing vendors to determine how the change will impact them in an effort to maintain positive relationships and business continuity with vendors throughout this process. And aside from taking advice from your new VMS provider, take insights from the company leaders, daily users, and other departments who will be affected by the implementation.
3. Think 'Future-State'
Planning ahead is often key to success in times of change. While focusing on immediate implementation needs, you need to think about the future state of your organization and how the VMS will fit into it. Your VMS provider will work closely with your stakeholders to build an implementation plan tailored to your needs.
Think beyond the initial implementation. What will users need to continue performing their daily tasks without interruptions? What support and training will be necessary? How will data be maintained and updated? Having a plan for these questions and maintaining transparency and accountability throughout the entire process will ensure a smooth transition and ongoing operations.
It is also important to brainstorm any potential issues that the VMS integration may cause before they occur. Your provider has first-hand knowledge about the challenges that may arise during the transition, so be sure to listen to their expertise as you troubleshoot together. And if you are aware of what could go wrong internally or what your employees might have an issue with, your VMS provider and your team can try to solve those problems before they develop. Preparing for the worst can be the difference between a seamless transition or a failed one.
4. Make Time for the Right Integrations
When you introduce a new VMS into your organization, you cannot risk losing your existing data in the transition. The success of a VMS implementation is heavily dependent on integrating the new technology with existing systems in your organization’s technology stack to ensure seamless data flow and unified workflows.
Involving your IT team early on is a critical component for a successful integration. Your IT team and VMS provider will need to identify all systems within your existing IT ecosystem that must be integrated with the VMS. This may include Human Resources Information Systems (HRIS), procurement platforms, supply chain systems, credentialing tools, and accounting software, etc.
Even if you don’t have immediate plans for certain integrations, understanding the potential and available integrations that a VMS offers is important for future planning. Defining all necessary systems will help your VMS provider determine the best approach and timeline.
5. Beyond Implementation
Implementing a VMS is just the beginning – your provider must also focus on change management, training, and ongoing support for your organization post-implementation. There needs to be a robust change management plan that includes comprehensive training programs, user guides, and other resources to help employees adapt to the new systems. You should also expect your provider to conduct regular surveys, monthly check-ins, and feedback sessions to understand how the technology is performing and where improvements are needed. Your organization’s stakeholders’ continuous feedback is essential for spotting areas for improvement, and this feedback should be utilized by your provider to make any necessary adjustments that ensure your goals are being met.
You also want a VMS provider who has a hypercare team, a dedicated team focused on post-implementation support, to help you manage any issues and provide the best training. Having a team ready to assist you at the drop of a hat will take any burdens from a complicated transition away from your internal teams.
In order to ensure your organization experiences a smooth VMS transition, make sure you find an experienced provider who will leverage their industry expertise to guide you through the implementation journey. Prioritize finding a VMS partner who will bring long-term value and efficiency to your organization. DZConneX is here to act as a trusted partner and advise you on best practices and processes for your contingent workforce program throughout the entire planning and implementation process.
