Objective
After completing this lesson, you will be able to explain how a VMS helps procure and manage an external workforce.
SAP Fieldglass is a cloud-based solution for procuring and managing an external workforce. It’s a type of software known as a Vendor Management System, or VMS.
Before we dive into the SAP Fieldglass solution itself, watch the video to get a foundational understanding of what Vendor Management Systems actually do to serve the workforce staffing industry.
With that in mind, one easy way to understand the value of a VMS is to consider what it’s like to operate without one. Without a VMS an organization really doesn’t have a basis for knowing whether a supplier is charging reasonable and competitive rates for the workers that it’s supplying, or even if it’s supplying quality workers. Nor does it have an efficient method of tracking and managing the workers, so there is no insight into productivity or the value of the work being done.
So a VMS gives customers like WorkingNet
Ultimately, a VMS does what an organization wants out of any tool: it increases efficiency and productivity, reduces costs, helps gain a competitive advantage, and drives business growth.
Having one system to house all worker and supplier information is not only cost effective but provides a single portal for complete visibility into the workers, the suppliers, and the project.
Overall, a VMS provides total visibility into the workforce, and companies like WorkingNet can automatically enforce contract compliance to reduce costs, mitigate risk, improve quality, increase operational efficiency, and make smarter buying decisions.
And considering WorkingNet’s global reach, a VMS can help the company stay in compliance with labor regulations in any country so that it can make appropriate hiring decisions anywhere in the world.
Think again of the relationship between WorkingNet, the buyer; re:CrewIT the supplier; and Joe the worker. What would be needed in order for WorkingNet to attract, hire, manage, and pay Joe?
WorkingNet, which has the temporary position to fill, would need to start by indicating that the position is available.
| 1 | It would use the VMS to create a job posting, which contains all the necessary information such as work dates, locations, and pay rates. |
| 2 | Since a VMS maintains a database of suppliers, that job posting would be routed through the VMS to re:CrewIT (or whichever suppliers WorkingNet has selected). |
| 3 | And because re:CrewIT also has the VMS, they would then use it to review the job posting, evaluate the job criteria, and match appropriate candidates. They would then use the VMS to forward information on those candidates to the hiring managers back at WorkingNet. |
| 4 | WorkingNet, then, would review the candidates in the VMS and request to hire as many as are needed. Those selections would then be routed back to re:CrewIT so that it could provide the requested workers. |
| 5 | Once hired, Joe would use the VMS to fill out documents like an I-9, a background check, as well as sign the contract for the position and enter his contact information. He would also create and submit time and expense sheets in the VMS. That data would be maintained in the VMS to make it more efficient to manage, track him, and determine his eligibility for future positions once his contract is up. |
| 6 | It also makes it easier for both WorkingNet and re:CrewIT to track Joe’s time and expenses, |
| 7 | and ensures that both re:CrewIT and Joe get paid accurately and in a timely manner. |
| 8 | And finally, when the project comes to an end, Joe would follow a particular exit procedure, and the VMS would help with that too! |
Log in to track your progress & complete quizzes