Often, these two terms are misunderstood as the same, even when they are different. Managed Service Provider (MSP) and vendor management system (VMS) are terms related to the staffing process, and when they are combined, the results are blissful.
First things first. Let's get the terms straight. The MSP, an outsourced agency, works on recruitment (mainly temporary staffing) for a client. It works upon the client's needs and manages the client's preferred staffing agencies. Whereas the VMs is a cloud-based software that allows recruiters, MSPs, and clients to exchange information and data on the portal. It includes the storage of candidate information, interview scheduling, invoice and payroll data, timesheets, talent pool, and much more. An MSP is an independent entity working with n number of clients and recruitment agencies, keeping them in sync. On the other hand, A VMS is an online portal used by the clients, MSPs, and the recruitment companies to manage and record all transfers and transactions online.
Did you know that a vendor management software solution can track different metrics related to the recruitment process, like the rejection rate?

How does the vendor management system help a client with the recruitment process? Well, here are a few ways.

• The VMS has various benefits, the most prominent feature being a time saver.
• A VMS allows the client or the MSP to send requirements directly to the recruitment agency.
• With the help of a VMS portal, one can respond faster to a job opening.
• Paying vendors, creating bills and invoices is smoother with a VMS System.
• A staffing company can easily submit talents via a VMS, and the clients can review those candidates on the same portal.

What are the benefits of combining an MSP with a VMS? As mentioned earlier, both managed service providers and the vendor management system help the client and the recruitment companies. Combining them allows you to boost the growth and productivity of your organization. And here is how.

1. COMMUNICATION:- The right MSP or managed service provider will introduce you to a better vendor management system that proves more beneficial to your company. They will have the software built into your HR system so that your human resource team spends less time on recruiting and staffing. Through the VMS, the MSP will receive the job requirements, which will be forwarded to the staffing agencies.
2. METRICS:- A good company always keeps track of its metrics and develops the changes as per the needs. Similarly, a good MSP will keep track of the metrics with the help of a VMS. This helps the MSP to see which staffing agency is not performing well. The MSP can then either warn or boot them and introduce a new staffing agency to replace the existing one.
3. TECHNOLOGY:- By combining the MSP and VMS, hiring can be made much easier. The data and metrics can be used to make improvements in the acquisition process. Engagement with the vendors is made easy through the portal, and a continuous stream of contingent workers can be maintained.
4. TOOLS:- Tools are needed to reduce the cost of operations. An MSP can work with the tools of a vendor management software solution and could also introduce you to the tools as per your needs to improve the contingent workforce program.
5. TIME:- A lot of time can be saved if you use an MSP or a VMS, and even more, time can be saved if you combine them. To outsource your contingent labor, you need an MSP, and if you need it directly, a VMS is required. And the best option is to combine both and use them.
6. TALENTS:- Recruiting new and top talents is possible when both MSP and VMs are combined. It helps in taking out the hassle of the entire process, and both contingent and in-house employees get to work faster in order to offer the best services. An MSP and a VMS can swiftly cover available positions.
7. TALENT POOL:- If you have a big group of talents, an MSP can build a talent pool for you. Additionally, they source, hire, and streamline the contingent workforce program and track the metrics. An MSP facilitates the payroll services. And if you would like to be in charge of this talent pool, a VMS system will assist you.
8. TRACKING:- To track the progress, check out the data and information, an MSP and VMS will be there for you. A vendor management system gives you all the data and information whenever you need it as it is cloud-based and can be accessed from anywhere, whereas the MSP will recruit, manage, and do the hiring for you.

To summarize this, an MSP and VMS combined reduce costs and increase efficiency. The information is leveled, and transparent to everyone as both the vendor management system and managed service provider are unbiased. With time and the pandemic, several talented candidates chose to work as a freelancer as it allows them to earn more and work on side projects. These candidates with top skills can be the ideal candidate for your organization, and only the MSP-VMS combined can get you such talents.
A vendor management software solution like FlentisPRO provides many other benefits like calendar-schedular, reminder-notification, in-built video conferencing, learning management system (LMS), application tracking system (ATS), budget tracker, and much more. Work, recruitment processes, and vendor management are made easier with a VMS Portal's help. To know more about a VMS System, log onto www.flentis.com or shoot us a mail at info@flentis.com, and we will get back to you.