1. Control over the hiring process
Applications will often be forwarded in a mail by a manager within an organisation and suppliers will send candidates directly to this manager. The hiring desk is not included in this process, and hired candidates are often not registered in the system. Furthermore, purchase order numbers may be left out and the wrong price agreements used, which means the billing is rarely correct. Although this is probably a simple generalisation, all too often the hiring process within an organisation is seen as a black box.
By supporting users with VMS, each step in the hiring process is transparent, and everyone involved knows the status of each application. Therefore, there are no surprises at the end, and the entire process can be monitored from a single platform. The supplier also uses the same VMS functionality and is therefore an integral part of the hiring process.
2. Optimisation of the administrative processes
Curriculum vitae, identity paperwork, Declaration of good behaviour – these are just a few of the documents that may be required for each candidate. They are rarely held in one common location within an organisation – they can be scattered around the organisation in mailboxes, on servers and even hard copies. From a compliance and privacy standpoint, it is desirable for these documents to be stored centrally.
From the VMS, a set of mandatory documents can be requested when applying for or taking up a job. This means that a self-employed professional is registerd at the tax authority and other commercial documentation for the Kamer van Koophandel (Company Register) are available at the right time during the process.
Documents are stored centrally with the candidate’s permission, and the validity of the documents will be checked via the Vendor Management System. Through the smart use of digital signature software, the signing of important documents will be assured within a VMS.
3. Assurance of contract agreements
When an organisation hires a large number of external employees, the number of diverse price agreements means that they are almost impossible to manage. Even if the agreements are checked at all, checks are usually carried out manually during the recruitment process. The consequence: more often than not, billing by suppliers is incorrect – much to the frustration of the financial department.
With a Vendor Management System, price agreements are assured within the platform and automatically applied while contracts are drawn up. Maintenance of the price agreements is carried out centrally, and variables can be easily added by the vendor. Purchasing, therefore, remains in control of the agreements made and the error rate on bills will be minimised.
4. Insight into the performance of the supplier
How are my suppliers performing? At first glance, this a simple question; but it is often much more complex in practice. Organisations are continuously looking to reduce their number of suppliers without compromising the quality of the candidates. However, purchasers need to be supported by a solid foundation when they enter into negotiations with suppliers. Instinct has no place here.
A Vendor Management System uses clear reports, so there is clear insight into whether suppliers are making use of previously agreed price agreements. By using offer ratios and turnaround times, purchasing has more control over the quantitative agreements that are made. This data considerably facilitates the work of a purchaser when they sit at the table with suppliers.
5. Integration with the IT landscape
Aligning the hiring process with existing ERP systems is a complex thing to do. Purchasing usually has tight processes described on these systems, and the IT organisation can be sceptical about implementing the alignment. This will often keep the hiring process and the procurement process separate.
With a Vendor Management System, integration with ERP (for example, SAP) does not have to be complex because a VMS is already a part of the IT landscape. Master data from the system is exchanged in real time with the VMS, which ensures applications are entered correctly. Upon hiring the candidate, data is exchanged – for example, a purchase order number or an employee number.
The advantage of this is that both systems contain the same end-to-end data, which eliminates the possibility of two differing sets of data.