8/12/2019 7 Major Pitfalls for VMS Implementation Can Go Wrong

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So this blog is intended to guide you past the seven major pitfalls that can cause the implementationof a VMS to go wrong.

#1: Unclear roles and responsibilities

Every VMS implementation should begin with the establishment of a governance structure that

defines roles, business review schedules, issue resolution processes, and approvals.

The VMS should include an online program management office (PMO) module that enables eachstakeholder to stay current with program status and developments, communicate and collaboratewith other team members, and organize all associated implementation documentation.

#2: Unrealistic Implementation Schedule

The implementation schedule should accommodate other corporate activities or deadlines (e.g.,plant shutdowns, ERP implementations, etc.) that may draw upon the same internal resources. Itshould be based on realistic expectations regarding availability of resources and data, and effortrequired to complete, review and approve each work step.

#3: Hiring manager resistance to program participation

There are many reasons why the intended beneficiaries may be resistant. They may fear anadditional burden to an already heavy workload. They may be concerned that a centralized programwill prevent the use of their favorite suppliers. Prior enterprise software initiatives may have failed toadd value to the hiring manager. In implementing a VMS program, it is critically important tocommunicate the benefits to the hiring manager and to uncover concerns that may inhibitparticipation and support.

The program must have a senior executive sponsor who will continuously reinforce thestrategic importance of the program to the corporation and the benefits that will be realized

by each stakeholder group. The implementation team should conduct face-to-face meetings with all critical client

stakeholders to surface issues, concerns, priorities and recommendations. Before launching the VMS, audience-specific training will gain user support and

preparedness. Eliminate concerns regarding loss of access to each hiring managers preferred suppliers

by explaining the criteria for supplier inclusion, and why that criteria is needed to protect thecompany. Consider inviting all incumbent suppliers to initially participate in the program, withsupplier rationalization occurring within a specified time period.

#4: Delays in providing critical business data; incomplete data

A great deal of information is needed on business policies, processes, suppliers, contractors, jobs,rates, and more when configuring and populating the VMS. To minimize the effort required to gatherthis information, use online tools and facilities for mass data uploads. Designate responsiblestakeholders within each function and location to ensure timely availability of critical data, adherenceto timeframes for review and approvals of workflows and business rules. Be sure that the VMSprovider can provided additional resources when needed to assist in data collection and entry.

#5: Supplier resistance to program participation

8/12/2019 7 Major Pitfalls for VMS Implementation Can Go Wrong

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A great supply base is essential to a high performance contingent workforce management program.Suppliers must be convinced that the introduction of a VMS will benefit them in ways thatsignificantly offset the nominal fees applied to a supplier-funded program. Select a VMS system thatoffers automated billing and other features that reduce supplier costs and efforts. In the best VMSsystems, the administrative savings will offset the VMS fee.

Suppliers are seeking a level playing field in which the volume of opportunities is driven by theirperformance. Resistance increases when the VMS company or Managed Services Program (MSP)provider is a division of a company that also provides staffing services. Implement a requisitiondistribution model in which the amount of potential business is directly tied to performance. Also,recognize that diverse suppliers may need additional support to encourage their participation.

#6: Potential loss of contractors on assignment through sunsetting suppliers

If a supplier will not continue to provide services to you, how do you ensure that incumbentcontractors sourced by the supplier will complete their assignments? Three options are available.First, negotiate with the supplier to transition its contractors to another supplier. In this case, thecontractors should be treated as payrolled workers, and you should pay reduced payroll bill rates.

Second, allow incumbent contractors to stay with the supplier throughout the remainder of theassignment while removing the supplier from the distribution list for new requisitions. If neither ofthose options are feasible, be prepared to replace the contractors. If possible, plan a knowledgetransfer period.

#7: Inexperienced Implementation Team

Be sure that the team leading the implementation is experienced with the VMS system. How manyprior implementations has each implementation team member successfully completed? Do they usea formal methodology for the implementation? Do they have the skills to configure the system basedon your business requirements? Are they providing the needed training to your in-house personnelwho will have ongoing responsibility for system administration? Do they have direct access to theproducts engineers and developers?

- See more at: http://blog.dcrworkforce.com/what-to-do-about-seven-vms-implementation-

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