Vendor Management System (VMS)

What is a Vendor Management System? (VST)

A Vendor Management System is a platform that facilitates procurement, management, and payment of contingent workers and service providers.

VMS platforms manage the entire contingent workforce lifecycle including requisition creation, vendor selection, rate negotiation, timesheet approval, invoice processing, and performance tracking. These systems provide centralized visibility into contingent spending, enforce compliance with policies and regulations, standardize processes across locations, and generate analytics on vendor performance and workforce composition.

Organizations use VMS to control costs, ensure compliance with worker classification rules, manage vendor relationships, and optimize contingent workforce utilization. VMS technology is essential for organizations with significant contingent workforces, providing governance and efficiency in external talent management.