In today’s competitive and ever-changing business landscape, employers are relying more heavily on contingent labor to fill in staffing gaps and maintain productivity. In fact, a 2023 survey showed that 65% of leaders were planning on increasing their contingent workforce over the next two years. While some are able to self-manage these programs, more organizations are turning to a Vendor Management System, or VMS, to provide them with the tools needed to streamline their workforce operations; SIA’s 2024 Workforce Solutions Buyer Survey revealed that 81% of companies now have a VMS in place. 

A VMS is a software platform that manages the procurement, administration, and performance of a contingent or temporary workforce, as well as the relationships with staffing agencies and other service providers. While all VMS users need to consider the financial, legal, security and compliance impacts such a program could have, those in industries with predominantly shift-based workforces - such as retail, healthcare, light industrial, and hospitality - face unique challenges. 

Unlike office roles, shift-based workers need to be physically present at specific locations to perform their job duties, whether it's at a factory, in a hospital, or on a retail floor. These roles require real-time communication and coordination, as workers need to respond quickly to changing situations on the ground. These “deskless” workers rely heavily on cell phones and applications for task management, scheduling, and communication, thus necessitating mobile-first technology solutions. As most VMS platforms were designed to accommodate traditional, salaried roles, it can be difficult for companies with large frontline workforces to meet staffing needs on short notice, while also ensuring compliance, maintaining quality, and controlling costs. 

For these businesses, choosing the right VMS - one purpose-built for shift-based labor - can offer a powerful solution to these challenges. This post explores the essentials of VMS and how Network, a leader in workforce management, can help you navigate the complexities of shift-based industries.

Improving Cost Efficiency

Controlling costs is always a priority, but especially for shift-based businesses, which typically have tight margins and fluctuating demand. A VMS provides visibility into spending, allowing companies to better manage their budgets and forecast future costs with greater accuracy. By improving cost efficiency, you can achieve better financial outcomes while maintaining a high-performing workforce. Network provides detailed reporting on all labor costs, helping frontline industries identify opportunities to reduce spending without sacrificing quality or performance; these insights lead a leading food service management company to save 18% on YOY labor costs. 

Additionally, Network streamlines the entire procurement process, reducing administrative overhead by automating tasks such as invoice processing and contract rate enforcement. This not only frees up resources for more strategic initiatives, but also minimizes the risk of human error, further ensuring that your budget is spent wisely and effectively. The combination of detailed cost analysis and automation provided by Network empowers procurement leaders to make informed decisions that drive cost savings and operational efficiency across the organization.

Streamlining Vendor Management

One of the most significant advantages of a VMS is its ability to streamline vendor management. For frontline industries, where managing multiple staffing agencies and suppliers can be especially complex and time-consuming, a proper VMS is essential for unifying and automating vendor interactions. It allows employers to efficiently oversee and coordinate large networks of vendors across multiple locations. 

Network enables users to consolidate their tech stacks, bringing all vendor management into one centralized hub; Maof was able to eliminate 11 systems by using Network’s integrated platform. Additionally, Network’s Empathic Intelligence capabilities and real-time benchmarking ensure that the most qualified vendors are selected for each staffing requisition, based on their performance, compliance, and availability. This not only enhances operational efficiency, but also fosters stronger vendor relationships by ensuring that agencies are engaged where they can deliver the most value.

Ensuring Quality and Performance

Quality and performance are critical in frontline industries, where customer experience and operational efficiency are directly impacted by the caliber of the workforce. A VMS can provide the tools necessary to ensure that vendors and workers are consistently meeting high standards. Most VMS solutions offer reporting metrics to provide users with these insights, but Network was designed with robust analytics capabilities that benchmark vendor and worker performance in real-time. This enables users to make data-driven decisions that foster meaningful change. This focus on quality ensures that your workforce is not only efficient, but also capable of delivering superior results.

Improving Adaptability and Responsiveness

Frontline industries often experience unpredictable fluctuations in demand, whether due to seasonal changes, staffing emergencies, or unexpected events. Being able to adapt quickly is crucial to maintaining operational stability and meeting customer needs. While traditional VMS platforms allow businesses to meet staffing demands, they typically work best for filling longer-term salaried roles, and were not designed to handle same-day or short-notice needs. Network’s VMS was engineered for agility, allowing employers to quickly scale their workforces up or down as needed without compromising quality or compliance. This ensures that you can respond to changes in demand with confidence, knowing you’re staffed appropriately to meet any challenge.

Enhancing Compliance and Risk Management

Compliance is a significant concern for frontline industries such as healthcare and construction, where regulations are stringent and the consequences of non-compliance can be severe; these include hefty fines, legal repercussions, and reputational damage. For instance, the construction industry alone faces average fines of over $16,000 per violation, while healthcare facilities can incur penalties ranging up to $50,000, increasing to over $1 million for repeat offenses. 

Managing compliance across a large workforce can be tedious and convoluted, involving the tracking of numerous certifications, licenses, and safety training records, each with different expiration dates and renewal requirements. A VMS simplifies this process by centralizing all compliance-related information in one accessible platform.

With Network, businesses gain the ability to monitor all workers in real-time, ensuring they meet necessary qualifications and certifications before they are deployed to job sites. This real-time tracking reduces the likelihood of deploying unqualified or uncertified workers, which is crucial in high-risk industries where even minor oversights can lead to significant safety hazards or regulatory violations.

Network further assists businesses in navigating complex regulatory environments by automating compliance checks, thus reducing the manual effort involved in verifying credentials; Maof’s usage of Network resulted in a 53% automation of these labor-intensive tasks. The platform alerts employers to potential risks - such as upcoming certification expirations or changes in regulatory requirements - before they escalate into serious issues. By proactively identifying and addressing these risks, Network provides peace of mind and lowering operating costs by ensuring that your workforce consistently operates within legal and regulatory frameworks.

Leveraging Data for Strategic Business Decisions

Having access to accurate and timely information is crucial for making strategic business decisions. A VMS collects and analyzes vast amounts of data related to your workforce, providing valuable insights that can drive better decision-making. Shift-based workforces, which frequently need to make informed staffing decisions quickly, would especially benefit from a VMS that is tailored to such industries. Network’s VMS leverages advanced, real-time analytics to give these businesses a comprehensive view of their workforces. This allows employers to anticipate future needs, optimize staffing levels, and make informed decisions with just the click of a button. By harnessing the power of live data, you can transform your workforce management strategy and achieve greater operational success. 

The Future of VMS with Frontline Workforces

As contingent labor programs continue to evolve, the role of Vendor Management Systems in managing frontline workforces will only become more critical. With cutting-edge advancements in AI and advanced reporting capabilities, specialized VMS platforms like Network will continue to lead the way in providing innovative solutions that address the unique challenges of shift-based industries.

Network helps procurement leaders in frontline industries optimize labor costs by providing real-time insights into vendor performance and spend patterns, allowing for data-driven decisions that reduce costs. It consolidates and manages vendors by centralizing all vendor-related information and interactions in one platform, streamlining communication and enhancing vendor relationships. Additionally, Network simplifies risk management by automating compliance checks, monitoring regulatory requirements, and alerting leaders to potential risks before they become issues, ensuring that all operations align with legal and regulatory standards.

At Network, we are committed to helping you navigate the complexities of contingent workforce management. Whether you’re in healthcare, retail, hospitality, or light industrial, our solution is designed to empower your workforce and drive your business forward. If you’re ready to transform your frontline workforce management strategy, contact us to learn how Network’s VMS can help you achieve operational excellence and stay ahead of the competition.