Vendor Management System (VMS)

A vendor management system (VMS) is software a company uses to manage its staffing suppliers and contingent workforce — handling requisitions, candidate submissions, timesheets, and billing in one place.

Larger employers that work with many staffing agencies use a VMS to standardize how roles are requested, how agencies submit candidates, and how hours and invoices are tracked. It gives the buyer visibility and control across all suppliers at once.

A VMS is often paired with a managed service provider (MSP), which operates the program on the employer's behalf. Smaller employers usually don't need a VMS and work with agencies directly.

Related terms

Related staffing services