Vendor Management System (VMS): The digital control center for your HR management
01
EMS supports companies with powerful technologies and services to achieve transparency, efficiency and compliance in the management of external workers and suppliers.
02
03
We combine technology, processes, and best practices to create a scalable, legally compliant workforce management system that provides transparency, minimises risks, and enables data-driven decision-making.
What is a VMS? The Difference Between Software (VMS) and Service (MSP)
A VMS (Vendor Management System) is software for the central management, commissioning and invoicing of external workers and service providers, including cost, supplier and compliance control, typically introduced and managed by the hirer.
While the VMS provides the digital platform for processes and data, the MSP takes over the operational control and optimization of these processes.
The focus is on the so-called source-to-pay cycle, which covers all steps from reporting requirements to billing:
- Demand assessment and sourcing
- Selection and commissioning of service providers
- Operational control and performance tracking
- Billing and reporting
The VMS ensures transparency and automation – the MSP ensures efficiency, quality and strategic control.
Find out how EMS, as a Managed Service Provider (MSP), takes over the operational management of your VMS.
SAP Fieldglass & MAVES Implementation with EMS
SAP Fieldglass
1.
Complete setup and configuration
2.
Adaptation to existing HR, ERP and IT systems
3.
User training and ongoing support
4.
Ensuring compliance (AÜG, bogus self-employment)
5.
Integration in international roll-outs and multi-country set-ups
MAVES (EMS Vendor Management System)
1.
In-house developed, modular VMS solution from EMS
2.
Scalable from medium-sized to global structures
3.
Intuitive user interface and flexible customization
4.
Complete integration into workforce, HR and compliance processes
5.
Ongoing further development by the EMS software team
- Services
Our Services in the Area of VMS
Global Admin Service & Implementation
- Setup, configuration and roll-out of SAP Fieldglass or MAVES
- Support for national and international implementation projects
- Ongoing administration, updates and technical support
Provision & Integration of Software Solutions
- Use of modern VMS platforms for maximum transparency
- Best practices integrated into workforce management
- Adaptation to industry and company requirements
Interfaces to HR, ERP and Compliance Systems
- Seamless integration into existing IT landscapes
- Ensuring consistent data flows
- Increased efficiency, compliance and data security
Focus on Legal Certainty: AÜG Traffic Light System & Equal Pay Automation
Compliance with legal requirements is one of the most important drivers for the use of a VMS, especially in the German market.
Modern systems offer automated compliance mechanisms that recognize risks at an early stage and actively avoid them.
These include, among others:
- AÜG traffic light systems that visually indicate critical assignment durations
- Automatic monitoring of the maximum transfer period (e.g. 18 months)
- Equal pay calculations that identify deviations at an early stage
- System-side warnings in the event of potential compliance violations
These “hard-coded” functions make compliance an integral part of the process and help the MSP and lenders to take the right legal actions in the system.
They can also be used for reporting purposes.
You can find out more about liability risks and procedural security under Compliance & Risk Management.
Beyond Temporary Work: Managing Project Contracts (SOW) in the VMS
A modern vendor management system goes far beyond the traditional management of temporary staffing.
Even complex services and project contracts (Statement of Work – SOW) or RFP (Request for Proposal) can be fully mapped and controlled in the system.
The focus is not on working hours, but on the actual result:
- Definition of deliverables and milestones
- Mapping of project budgets and scope of services
- Result-based billing (milestone-based billing)
- Transparent tracking of project progress
This makes the VMS the central platform for the entire service procurement process – from temporary resources to complex projects.
Detailed insights into results-based accounting can be found on our Statement of Work Management page.
Future-proof IT Landscape: ERP Interfaces & Own Talent Pools
The full benefits of a powerful VMS can only be realized through seamless integration into existing IT systems.
EMS ensures a smooth connection to leading platforms such as SAP or Workday, creating a consistent system landscape without media disruptions.
In addition, another trend is becoming increasingly important: direct sourcing.
Companies build up their own talent pools – consisting of:
- Former employees (alumni)
- Freelancers and specialists
- External resources already checked
A VMS makes it possible to manage these pools centrally and activate them in a targeted manner. In order to be able to respond to individual requirements, we at EMS also develop our own VMS solutions and add-ons to map complex and individual processes.
For specialized IT integration, discover our expertise in SAP Fieldglass integration.
- Advantages
Your Advantages with VMS by EMS
Implementation and operation of SAP Fieldglass and MAVES from a single source
Central management of all external resources and service providers
Automated workflows and more efficient processes
Maximum transparency and compliance security
Technology-neutral advice for every company structure
Future-proof integration into your IT systems
Source-to-Pay at a Glance: Transparency Throughout the Entire Process
A key advantage of a VMS is complete transparency over the entire life cycle of external resources.
Source-to-pay process:
All steps are digitally mapped and linked, from the notification of requirements to selection and commissioning through to billing (pay agent, orders, invoicing).
The result:
- Complete traceability of all decisions
- Consistent database for reporting and analyses
- Significantly reduced process costs
A visual representation of this process (e.g. as an infographic) also supports understanding and increases transparency within the company.
KPI Dashboards & Data-based Management of External Resources
A VMS not only provides operational support, but also a sound basis for strategic decisions.
Integrated dashboards and reports give companies insight into key performance indicators such as:
- Time-to-Fill
- Costs per assignment / project
- Supplier performance
- Spend analysis across all external resources
- Headcount Reports
- Savings
- Utilization reports
- Forecast
This data enables continuous optimization of processes, costs and quality in workforce management.
Compliance Check: How Secure is Your Current Setup?
The legal requirements relating to external workers are constantly evolving – especially in the context of AÜG and Equal Pay.
Interactive compliance check (lead approach):
- How long are external employees deployed?
- Are equal pay requirements systematically checked?
- Are there automated warning mechanisms in the system?
Companies that are unable to answer these questions clearly bear an increased risk.
EMS supports you in analyzing your current setup and bringing it up to date.
Frequently Asked Questions about the Vendor Management System (VMS)
What is the difference between a VMS, ATS and an MSP?
A VMS is the software platform, while an MSP takes over the operational control and optimization of the processes. A VMS manages the hirer’s demand, while an ATS manages the hirer’s candidates and offers. Both systems are complementary.
When is a VMS worthwhile?
A VMS is worthwhile from a medium number of external employees due to increased transparency and efficiency.
How does a VMS support compliance with the AÜG?
Through automated deadline checks, equal pay calculations and system-based warning mechanisms.
Can a VMS be connected to existing ERP systems?
Yes, modern systems can be seamlessly integrated into platforms such as SAP or Oracle.
What does source-to-pay mean in the context of a VMS?
The entire process, from reporting requirements to invoicing external resources, is mapped digitally.
Which reports are particularly relevant?
Time-to-fill, spend analyses and supplier performance in particular provide an important basis for decision-making.
Does a VMS support direct sourcing?
Yes, your own talent pools can be set up, managed and used in a targeted manner.
What potential savings are realistic?
Depending on the initial situation, the use of a VMS can reduce costs by around 10-20% in the area of external services – in particular by avoiding maverick spend, optimizing supplier structures and making processes more efficient.
What role do personnel service providers play in the VMS?
Personnel service providers are connected, managed and evaluated in a structured manner via the VMS. They supply candidates or services, while their performance is measured transparently and made comparable.
Do all suppliers have to use a VMS?
As a rule, yes – at least all relevant personnel service providers. Transparency, comparability and compliance can only be ensured by using the system centrally.
Can a VMS reduce risks?
Yes, considerably. Automated compliance checks, standardized processes and complete transparency significantly minimize legal, financial and operational risks.
How long does a VMS implementation take?
Depending on the size and complexity of the company, implementation usually takes between a few weeks and several months. Factors such as the system landscape, international roll-outs and integrations play a decisive role.
Get in Touch With Us!
Get in touch now and take the first step towards your solution – we’re ready when you are.
