As a contingent workforce program manager, it is crucial to leverage your supply chain technology and service partnerships for program success. Yet a recent SIA survey indicates many program managers are unhappy with their provider relationships and are considering finding new providers.

Eighty-one percent of survey respondents said they use a vendor management system (VMS) and 55% partner with an external managed service provider (MSP). And these providers are deeply integrated into their contingent workforce operations, with median partnership lengths of five years and more than 25% lasting a decade or more.

Duration notwithstanding, respondents gave VMS and MSP partners negative Net Promoter Scores, with VMS scoring -35 and MSP scoring -10. Consequently, 56% of program managers said they plan to issue requests for proposal (RFPs) in the next 12 months in search of new supply chain partners.

While exploring new partnerships can be advantageous, it’s equally beneficial to determine if the reason for your dissatisfaction lies with the current suppliers or the underutilization of their capabilities.

To rule out the latter and ensure you’re getting the most out of your current VMS and MSP partnerships, consider these critical questions:

Is the partnership mutually beneficial? A mutually beneficial relationship encourages better cooperation and drives shared success. Evaluate whether both parties are gaining strategic value from the partnership. Are your VMS and MSP partners meeting their commitments and adding innovative value to your operations? Similarly, are you providing them with the necessary support and opportunities to innovate and excel? It’s also important to consider if your partners are achieving a competitive financial return, incentivizing them to treat you as a top client. Or is the relationship underfunded, resulting in poor talent and customer service?

What features and services are you not taking advantage of? Organizations often fail to fully utilize the features and services available from their VMS and MSP. Conduct a thorough review of the capabilities available to you. Are there best practices or advanced features you’re not currently taking advantage of such as reporting tools, automation features and compliance solutions? By maximizing feature and services capabilities, you can streamline operations and enhance overall program efficiency. If you are extremely passionate, consider participating in your partners’ product focus groups to influence future value enhancements in your partner relationship.

Are your processes holding back your program’s efficiency? Examine your existing processes to identify bottlenecks and inefficiencies. Are there outdated workflows or redundant steps that could be streamlined? Additionally, are your MSP and VMS constrained by these processes, limiting their ability to maximize your program’s efficiencies and cost savings? Collaborate with your VMS and MSP to optimize these processes, leveraging their expertise to implement best practices and enhance operational efficiency. Evaluate if you really need all those non-value-added approval steps and assess the risk versus reward of removing them. Finally, automate repeatable manual processes, as this is becoming a critical competitive advantage in process management.

Are you having strategic quality business reviews? A partnership that isn’t constantly improving is standing still, losing initiative and competitive value. Regular strategic QBRs are vital for maintaining a strong, energized partnership. These reviews should go beyond operational metrics to address strategic goals, performance improvements and future planning. Use QBRs to align on strategic objectives, tackle challenges and explore new value initiatives or pilot opportunities that can drive program success.

How well are performance metrics aligned? Ensure the performance metrics used to measure your VMS and MSP align with the strategic goals of your contingent workforce program and organization. Properly aligned metrics drive desired behaviors and outcomes, ensuring that your partners focus on what matters most to your success. Regularly review and adjust these metrics to reflect evolving priorities, keeping everyone committed to the objectives. Your program is dynamic, and your performance metrics should be organized and managed accordingly.

Do you have the right account reps and support structure? The effectiveness of your VMS and MSP partnerships relies heavily on the quality of the support structure and partner talent. Ensure you have account representatives who understand your business needs and strategy and can provide proactive support. Evaluate the responsiveness and expertise of your partner support team to ensure they can effectively address your requirements. If a designated resource isn’t a good fit, don’t hesitate to ask your partner to assign a new resource to your program. This can significantly enhance the partnership’s value, and your partner will likely be happy to make the necessary changes.

Consider a reimplementation of the services or technology. If your current setup isn’t meeting your needs, consider reimplementing the services or technology. This could involve revisiting the initial configuration, adding new integrations and aligning the technology with evolving business requirements. Legacy processes can become outdated, slow, frustrating and costly. Driving a process reengineering project with your VMS and MSP partners can reinvigorate your relationships and turbo-boost the quality, efficiency, cost and risk performance of your CW program.

Is it time to terminate the partnership? After a thorough evaluation, if you find the partnership no longer meets your organization’s needs, it may be time to consider ending the relationship. The contingent landscape is vast, with many MSP and VMS provider options available. If the partnership has reached the end of the road, conducting an RFP can help you explore new opportunities and find a partner that better aligns with your strategic goals.

By asking these critical questions and proactively managing your VMS and MSP relationships, you can maximize the value of your current partnerships, transform challenges into opportunities and, at the end of the day, ensure you are strategically aligned with providers dedicated to your organization’s success.