Vendor Management Systems features have become an essential tool in the modern workforce management toolkit, especially for companies with complex contingent labor programs. Whether you’re outsourcing through a Managed Service Provider (MSP) or managing vendors internally, the right VMS can reduce costs, improve compliance and visibility and streamline talent acquisition.
But not all VMS platforms are created equal.
Choosing the right VMS means more than comparing software features. It’s about finding a solution that aligns with your company’s size, goals, industry and internal resourcing. Here’s what to look for in a VMS to ensure your investment delivers both immediate value and long-term scalability.
1. Rapid, Cost-Effective Implementation
Mid-sized and enterprise companies alike are no longer willing to wait 6–12 months for VMS deployment. The best platforms offer:
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Pre-configured templates for workflows and requisitions
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Standardized onboarding for suppliers and users
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Configuration-driven flexibility without requiring custom code
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Shortened time-to-value, helping you start saving faster
Implementation timelines are a critical consideration, especially if your team lacks dedicated technical or project management resources.
2. Scalability and Modularity
Your workforce strategy will evolve over time. A modern VMS should scale with you:
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Start with core needs like staff augmentation
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Expand into SOW, independent contractor compliance or EOR
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Enable multi-entity or multi-country support without performance lag
Modular deployment allows organizations to address current needs without overpaying for unused vendor management system features while retaining the flexibility to scale.
3. Compliance & Risk Management
Contingent labor introduces compliance risks around classification, co-employment, labor laws and data security. Strong VMS platforms offer:
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Automated alerts for assignment duration or classification risks
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Audit trails and documentation to meet internal and legal requirements
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Standardized vendor onboarding with built-in background check tracking, COI validation, etc.
With misclassification lawsuits on the rise, a compliance-focused VMS is no longer optional, it’s mission-critical.
4. User Experience & Adoption
Even the most powerful VMS won’t add value if users resist adoption. Top VMS platforms prioritize:
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Intuitive, mobile-optimized interfaces
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Minimal training requirements
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Role-based dashboards for hiring managers, suppliers and program owners
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Self-service functionality for reporting, requisitioning and approval chains
Look for platforms with strong usability scores and live product demos before committing.
5. Seamless Integration with Existing Systems
The VMS shouldn’t operate in a silo. It should integrate smoothly with your HRIS, ERP, payroll and finance tools to prevent duplicate data entry and improve reporting accuracy.
Ask about:
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Pre-built connectors (ex. for Workday, Oracle, ADP)
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APIs and Integration Platform-as-a-Service (iPaaS) capabilities
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Support for SSO, role-based access and secure data exchange
6. Analytics and Workforce Visibility
Data is only as useful as your ability to act on it. Advanced VMS platforms offer:
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Real-time dashboards for headcount, spend, diversity and time-to-fill
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Predictive analytics and trend reporting
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KPI tracking and SLA scorecards for suppliers
If your current reporting requires manual Excel exports and pivot tables, it’s time to upgrade.
7. Customer Support and Continuous Innovation
Your relationship with the VMS provider doesn’t end at go-live. The best partners offer:
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Dedicated customer success teams and shared service desks
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Product roadmaps with frequent updates
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In-app support and onboarding libraries
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Feedback loops that drive platform innovation based on client input
This is especially important for growing mid-market companies who may not have in-house platform administrators.
8. Transparent, Scalable Pricing
Pricing structures should match your organization’s size and maturity. Ask:
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Is pricing based on headcount, spend or modules used?
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Are there hidden integration or maintenance fees?
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Can the pricing scale as your program grows without requiring renegotiation?
Avoid being locked into long-term contracts with limited flexibility.
Why It Matters
In a labor market where cost-efficiency, speed, and compliance are top priorities, the right Vendor Management System is a strategic advantage. It allows companies to centralize their contingent workforce, reduce rogue spend and improve the quality of talent brought into the organization, all while ensuring stakeholders across HR, procurement, legal and finance have the data and controls they need.
At Suna Workforce Management, we understand that no two organizations are the same. That’s why we offer flexible solutions including our proprietary, mid-market-friendly SWM VMS, designed to meet you where you are. Whether you need help evaluating platforms, implementing a new program or fully outsourcing your workforce strategy, we’ve got you covered.