The problem: relationship-based sales deal

Not all suppliers are the same. Some suppliers run smaller operations, and others are larger and more prominent in providing consulting or other professional services. Smaller suppliers are more likely to utilize the VMS for SOW-based initiatives because it helps them establish their name and footprint in the market. Larger suppliers, who account for millions or even billions of dollars in annual spend, tend to already have close relationships with C-level executives at enterprise companies who utilize a sizeable external workforce. These C-suite relationships can enable suppliers to bypass the VMS technology used by that executive’s company.

Some suppliers create relationship-based deals with executives, resulting in no paper trail, accountability, or visibility. When these suppliers bypass the VMS, you lose all visibility into their activity and spending and risk failing to maintain worker and organizational compliance.

The result: a lack of visibility and compliance

When your service providers are not in the VMS, how does your organization ensure it is operationally efficient and compliant?

Without a proper technology solution, how does your organization mitigate the legal and regulatory risks associated with using external workers to perform these service contracts?

When a supplier resists using the VMS, how do you ensure you are deploying your extended workforce appropriately?

Do you know everyone who is working for your company?

• Do you know who everyone who works for you is, where they are, and what they are doing?
• Can you give your executives a bird 's-eye view of what is occurring within the organization?
• Do you have the data and analytics to understand, in real time, the breakdown of the company’s SOW-based workforce spend and evaluate the balance of resources?

Are you operationally efficient with your invoicing?

• Do you have the ability to track up-to-the-minute spend, milestones, deliverables, and billing activity?
• Do you know what your supplier markups are?
• Do you have the ability to detect overbilling by a supplier and prevent overspending?
• Are you able to produce accurate financials, including accruals?

How do you track headcount?

• How many consultants work for you?
• Where are these consultants located?
• How long have these consultants worked for you?

Is your company compliant with regard to these workers?

• Which workers have access to your physical and intellectual property?
• How are the workers onboarded and offboarded?
• Are these workers compliant with applicable laws, regulations, and organizational policies?
• What measures do you take to validate the workers’ credentials on a regular basis?
• How do you ensure they are not maintaining badge or network access longer than their work requires?