SI Review: May 2012

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You Ask/We Answer

VMS Angst?

Staffing firms rate it a negative, buyers still use it

Question: The use of vendor management systems (VMS) appears to be gaining popularity with buyers, but have staffing firms warmed up to it?

Answer: Many staffing firms now engage clients through a VMS. It’s common in the industry. However, staffing firms don’t take a positive view of it. In a survey of staffing firms, 53 percent reported that VMS was a negative for the staffing industry. Thirty-two percent were neutral, and only 15 percent said it was a positive. The survey included responses from 483 staffing firms.

Still, VMS appears here to stay. The use of VMS by buyers has risen over the years. Last year, 63 percent of large buyers indicated they used a VMS, up from only 8 percent in 2004, according to a survey of large buyers by Staffing Industry Analysts. However, it might be added that the rate of expansion in use has slowed.

Editors at Staffing Industry Review

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