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What is a VMS? (Vendor Management System)

Written on July 31st, 2015 by in Blog

This business model refers to a provider that handles order distribution or candidate selection for an employer.

Bottom Line: The VMS works between the client and Staffing and Recruiting firms. This eliminates direct contact with hiring authorities for the Staffing and Recruiting firm and if someone is hired, the VMS company is paid a percentage of the fee or margin (average 2-3%).

Many larger companies are utilizing a VMS and as a result, some Staffing and Recruiting firms have gone into the VMS business. The typical VMS system includes contingent worker sourcing, billing applications, supplier profiling, order creation and distribution, candidate submissions, on and off boarding, time and expense keeping and reporting.