Implementing a Vendor Management System (VMS) in a company is a powerful way to structure and digitalize the procurement of intellectual services, significantly enhancing overall performance.
However, deploying such a tool can be a long and complex process that requires adherence to best practices. So what are the key success factors for a VMS implementation ? Here are Eleven VMS’s recommendations.
What is a VMS ?
Companies are increasingly relying on external resources such as freelancers, agencies, consulting firms, and IT service providers. These external resources, known as intellectual services, represent a growing expenditure category and must therefore be managed by the Procurement department.
Traditional procurement tools are typically not adapted to the specificities of purchasing intellectual services. Human skills cannot be procured the same way as raw materials or office supplies. This is where a VMS becomes essential.
A VMS is a software or SaaS solution that enables procurement teams to digitalize and centralize the management of all their intellectual service purchases. It allows organizations to :
Monitor real-time spending
Manage supplier panels
Consolidate all purchasing data in one place
Automate contracting and invoicing processes
Streamline communication between suppliers and internal stakeholders
In short, the benefits are numerous. With a VMS, procurement professionals gain in efficiency and can focus on more strategic aspects of their role.
Making the decision to implement a VMS
A VMS offers the promise of more effective management of intellectual service purchases. But before embarking on an implementation project, it is important to understand the time and commitment required. On average, it takes 3 to 4 months to set up the solution, although this timeline can vary greatly depending on project complexity and stakeholder involvement.
The two main success factors for implementation are :
Choosing the right partner who understands specific business challenges and brings experience across diverse use cases.
Ensuring strong involvement from internal stakeholders. Even the best partner cannot succeed without timely data sharing and responsive communication.
Ultimately, success hinges on fluid collaboration and effective communication between internal teams and an expert external partner.
By following the best practices outlined below, companies can ensure a successful VMS implementation and benefit from improved efficiency, visibility, cost savings, and control over intellectual service procurement.
Best practices for implementing your VMS
1. Clearly define objectives and priorities
Before launching the VMS implementation, it is crucial to identify and prioritize key needs. Is your main goal to streamline processes, gain visibility, or rationalize your supplier panel ? Clearly defined priorities form the foundation for a comprehensive and measurable implementation roadmap.
A VMS typically includes a standard base that addresses common needs in intellectual service procurement, along with custom features tailored to each company's specific requirements. Identifying and prioritizing these needs with your partner helps define implementation phases and anticipate integration requirements.
2. Build the right project team
It is vital to mobilize the right internal stakeholders and ensure they are engaged and responsive throughout the project.
Designating a project sponsor internally is highly recommended. This person, ideally someone with visibility and seniority like the Head of Procurement, will act as the project's spokesperson and champion.
It is also essential to involve end users, such as internal managers who regularly work with external service providers. These profiles help accurately identify usage needs, a critical factor for successful implementation and adoption.
3. Commit to timelines and deliverables
Establishing clear deadlines helps structure the implementation process, but internal commitment is equally important. Teams need to be realistic about the time required to gather all the necessary data for their partner.
For example, the partner may need access to all ongoing project and assignment data involving external resources. Collecting this data takes time and must be anticipated.
4. Plan a phased rollout
Every case is different. But when it comes to complex implementation projects, where the VMS must integrate a multitude of specific requirements, it is often recommended to start deployment on a limited scale and be agile.
Starting with a pilot phase, which focuses on a single entity, can, for example, be a good way to launch the solution quickly, to start gathering user feedback before deploying the solution more widely.
5. Ensure supplier onboarding and communication
For the implementation of a VMS to be successful, the company's suppliers must be involved in the project. They must be informed, made aware of the benefits of such a solution, and trained in its use.
6. Invest in internal user training
This step is essential to ensure successful internal adoption of the tool. If it is not done properly, there is a risk of spending several months deploying a tool that will ultimately be used little or not at all. User acceptance of a VMS solution is one of the most important key success factors.
It is recommended to offer training sessions and to continue gathering user feedback, even after launch or go-live, in order to continue adapting the tool and lay the foundations for effective monitoring or hypercare.
Partnering with the right expert
A skilled partner integrates all these best practices into the implementation process and provides guidance throughout the project to set the stage for success.
Eleven VMS supports companies through every stage of this journey, using a proven methodology that includes technical and functional workshops, internal training, communication templates, access to test environments, and more. We manage both simple projects requiring speed and precision, as well as complex rollouts involving a wide range of business needs.
While implementing a VMS may take time and effort, the benefits are well worth it. This powerful tool enables end-to-end management of external resources, driving productivity gains and cost savings. With greater control over procurement activities, organizations can deliver more value to internal stakeholders.
