Vendor Compliance
Ensuring that vendors meet all compliance standards with your VMS.
Many companies incorrectly believe that the responsibility for ensuring proper worker classification and addressing other regulatory compliance issues rests with the employer of record, often a staffing vendor or service provider. But In reality, if a compliance issue arises, the regulatory authority will follow the relationship from the worker to the recipient of the work product, including the hiring company.
All it takes is one claim asserting that a worker has been misclassified and should be
an employee of the client
company, or one workers compensation claim due to a work-related injury, and these
claims could lead to an audit or
even potential legal liability for the client company.
For these reasons, it is vitally important for a contingent workforce program to ensure
that its vendors are compliant
with all applicable laws and regulations. Your vendor management system (VMS) can help
to ensure your vendors meet
these standards.
Vetting and Compliance Process
Beeline oversees, documents, and systematized the vetting and compliance of all your suppliers. Our vendor compliance team has created a supplier vetting process and services designed to enhance your audit capabilities and help you manage suppliers more efficiently. Vendor compliance services include:
- Vetting Requests
- Contract Management
- Amendment Tracking
Our VMS has an online portal through which all supplier contracts are originated and maintained. The portal provides supplier onboarding, payment requirements, and contract compliance. The portal securely maintains all required documentation, including all financial information when managing supplier payments. This provides an auditable system of record for your supplier contracts, as with all essential data in a repository for supplier contract management.
You can be confident knowing all suppliers with access to your VMS must first go through the vendor compliance online portal and execute your approved Supplier Access and Services Agreement before gaining access to your site. Our compliance team works to ensure that each supplier executes the correct client contract, along with any other required documents. This ensures that all suppliers meet your pre-defined requirements from a financial and legal perspective.
Why a Vendor Qualification Process is Necessary
It is vitally important for any organization engaging contingent labor to have a vendor qualification process in place
to mitigate risk from a financial aspect. But ensuring vendor compliance is also important from a reputation
standpoint. In too many cases, companies have seen their reputations damaged by news stories about workers being
underpaid by subcontractors, and while the subcontractors’ names may be quickly forgotten, it is the brand name of the
hiring company that is permanently damaged.
Having a vendor qualification process in place not only mitigates this unnecessary risk, but also help organizations
bring on vendors quickly, efficiently and compliantly. With Beeline and our ecosystem of approved and vetted talent
partners, you can be confident of operating a contingent workforce program that combines flexibility and cost savings
with compliance risk mitigation.
Vetting Vendors for
SOW-based Contracts
Enterprise clients frequently use large numbers of service providers and specialized consulting firms to
perform
projects involving hard-to-find worker skillsets. These projects are generally performed according to the
terms of a
statement of work (SOW) and the contractor may either be paid a fixed price or compensated on a
time-and-materials
basis. Due to their structures and the employment relationship of their workers, service providers can
potentially
introduce worker misclassification risk to the enterprise.
Using the services procurement capabilities of Beeline, companies can reduce these risks. Beeline allows
organizations to select contractors by competitive bid and negotiate SOWs using their preferred terms, rather than the
contractors’. This allows enterprises to establish firm and consistent compliance requirements for contractors and
ensure that service providers meet client-defined standards for vendor status, including:
