Technology · HR glossary

Vendor Management System

A vendor management system, or VMS, manages procurement and administration of external workforce or supplier services. It may track requests, assignments, rates, timesheets and invoices.

Example

A company uses a VMS to request temporary workers from approved suppliers and reconcile authorised hours with supplier invoices.

What to keep in mind

The system does not itself determine worker status or supplier compliance. Set clear approval controls and verify who owns employment, safety and data responsibilities across the arrangement.

Further reading

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