If you’re considering a Vendor Management Solution (VMS for short), you are probably finding there are a lot of different options. From the “DIY” model to solutions that are “Fully Managed”, to hybrid solutions that fall somewhere in between. So how do you decide what option is best for you? Well, you should start by understanding what a fully managed solution is, because not all providers see it the same.
A true fully managed solution is one where a 3rd party provides your business with support for each component of your complex indirect spend and vendor documentation. It requires technology, tools, process, expertise, time, commitment, and resources. It’s not easy, and it takes a team of people who know where to look and what to look for with your vendors.
There are 2 critical components to providing an effective fully managed VMS service. First you must have a document management platform that contains your vendor/supplier database with every element of your relationship defined. From rate to renewal, the system needs to be set up so that it can provide notifications and escalations to your vendor management team.
Second, you must have a team of experienced professionals that know how to conduct an effective bill audit. These are the people who can determine where there are opportunities for improvement. It is not enough to simply compare 3 different rate quotes, and choose the best cost. They need the knowledge to understand where others in the market are priced, so you can ensure your rates are not just good, but compare favorably with others businesses like yours.
Bringing together the people and the platform is what allows the magic to happen. By having a 3rd party that can implement a fully managed platform, there are obvious benefits:
- Increased efficiency
- Reduced Impact of employee turnover
- Centralized platform and processes
- Lower risk of non-compliance
- Benchmarking analysis
- Monthly reporting and invoice reviews
- Ongoing rate and term optimization
Many companies ARE getting ahead of this problem by finding a partner with the tools and expertise to manage the “complexities in their details” as it relates to local, regional even national service related costs. They find partners they can trust, which will do the auditing necessary and the benchmark analysis on every single invoice, contract and supporting vendor document. They look for partners which will actively optimize their costs, renegotiate for lower ongoing pricing and betters T&Cs, ensuring bills get paid on time and accurately, and ultimately resulting in “elimination of expense fat” so they can apply these profits to a more strategic use.
Limitless Technology has spent years focusing on managing complex variable expenses. We take this burden off of your people – so they can focus on the bigger problems at hand. And we partner with each member of your team so they feel confident they can maintain the overall control, don’t lose the vendor relationships they value, but DO gain the critical support they need to make better decisions. The support we provide allows your team the time to focus on the important work of growing, delivering exceptional Client experiences, and grow their business and market share. Through our Billing Optimization and Vendor Management Solutions we improve our client’s bottom-line.
Limitless Technology manages your vendors, so you can manage and grow your business. For more information about our fully managed VMS Platinum Service, CLICK HERE or contact us at Info@LimitlessTechnology.com to schedule a demo of our VMS-DM platform.