Running a small business means wearing a lot of hats. Not only will you be handling all the essential functions of your organization, but you’ll also be chief financial officer, chief technical officer, human resources manager and more. Small businesses can benefit by partnering with Vendor Management Systems to help streamline their processes. Suppliers are a critical part of your everyday operations, so be sure to track them and evaluate them regularly. Here are a few reasons your company should be working with a VMS.
Reduce Supplier Risk
For every link in your supply chain, you retain additional risk. If you’re unable to track information on each supplier, you won’t see where the weaknesses are. You’ll want to oversee operations, cost implications, and compliance issues for every supplier you work with.
With a VMS, you can verify information for your suppliers including qualification and certifications. You can track their performance, look at their financial health, and understand the risk levels for each supplier. Tracking this will allow you to maintain positive vendor relationships and make necessary changes if anyone isn’t living up to their end of the bargain.
Track and Measure Performance
With each vendor, you’ll have a contract in place. But how can you be sure each vendor is complying with your business agreements. Without tracking, you may find that some things fall through the cracks, and by the time you discover the missing pieces, it may be too late.
By tracking each vendor’s performance, you can see where successes and failures are happening. This will give you a chance to make corrections as necessary as well as provide positive feedback for excellent work.
Reduce Overall Costs
This tracking will also allow you to see the hidden costs of every service provider you work within your business. You will be able to see where your money is going and negotiate for better rates based on the end result of your project or service.
A VMS will also cut your costs simply through awareness. If you’re uncertain about a process, you will be able to track it and see exactly whether you need to invest in it.
Build and Strengthen Relationships
Of course, having a solid professional relationship with good suppliers is critical for business success. When you have the ability to track performance, you’re able to see where your superstars are working behind the scenes for your company.
This allows you to build and maintain loyalty through gratitude and strong communications skills. VMS gives you the chance to track the good as well as see red flags in action and make necessary changes.
Improve Onboarding Processes
Each time you bring on a new vendor, there is an establishment process. Without the processes in place, setting up new vendors can vary based on a number of outside factors.
But VMS allows you to streamline this process, gives you established criteria to input, and gives you the ability to move quickly through the process each time. These processes allow you to onboard new vendors quickly and efficiently the same way every time.
Are you interested in learning more about VMS? Let’s team up!
Anserteam Workforce Solutions represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings? Contact us today.